- Q3 revenue up 24.9 percent on prior year - nine-month revenue up 20.6 percent to 609.2 million euros
- Substantially improved profitability - EBITDA margin at 21.6 percent in reporting quarter and at 19.9 percent after nine months
- Ongoing strong demand in photonics divisions - order intake considerably up by 49.0 percent to 761.0 million euros
- Outlook for full year 2021 confirmed: revenue of 880 to 900 million euros expected, with EBITDA margin of between 19.0 and 19.5 percent
- Jenoptik strengthens global photonics business with the acquisition of Berliner Glas Medical and SwissOptic
Very good operating performance
With the recovery in demand in the three photonics divisions – Light & Optics, Light & Production, and Light & Safety – continuing in the third quarter, Jenoptik posted a dynamic increase in order intake after nine months of 49.0 percent, to 761.0 million euros (prior year: 510.9 million euros). The reporting quarter, too, saw an encouraging 42.8-percent increase in the Group’s order intake. In the period from January through September 2021, the Group’s book-to-bill ratio increased from 1.01 to 1.25. An order backlog up 34.1 percent to 616.8 million euros (31/12/2020: 460.1 million euros) also leaves Jenoptik confident of its future prospects.
In the first nine months, the company posted a 20.6-percent increase in revenue, to 609.2 million euros (prior year: 505.0 million euros); with growth of 24.9 percent in the third quarter. The Light & Optics division, in particular, benefited from a strong contribution from TRIOPTICS and substantial organic growth in the first nine months. The Light & Production division saw growth thanks to an upturn in demand from the automotive industry, while revenue in Light & Safety was down on the prior year, partly due to the project-based business, and VINCORION remained largely stable. Worth mentioning for the Group as a whole are the significant improvements in revenue in the key strategic regions of Asia/Pacific and the Americas, where the share of group revenue increased from 38.1 percent in the prior year to 44.8 percent in the period covered by the report.
The improvement in profitability in the first nine months of 2021 was even more pronounced than the revenue growth. The EBITDA grew by 81.9 percent, from 66.6 million euros to 121.2 million euros, including PPA impacts of minus 1.8 million euros. This was attributable to the good operating performance, increasingly positive impacts from the restructuring measures implemented in 2020, and one-off effects of 25.6 million euros in connection with the 2020 acquisitions. The EBITDA margin improved to 19.9 percent (prior year: 13.2 percent). In the first nine months, income from operations (EBIT) of 80.5 million euros was more than double the prior-year figure of 32.7 million euros. The EBIT item includes PPA of minus 12.1 million euros as a result of acquisitions in prior years (prior year: minus 5.9 million euros). Group earnings after tax rose significantly, from 24.4 million euros to 66.2 million euros.
Robust free cash flow and very good financial and balance sheet position set to secure future growth
As of September 30, 2021, Jenoptik continues to have a very healthy and robust financial and balance sheet structure. Cash flows from operating activities improved from 31.1 million euros in the prior year to 42.2 million euros in the first nine months of 2021. At 17.7 million euros, the free cash flow was also up on the prior-year figure of 13.4 million euros, despite a sharp rise in working capital.
“We are able to finance the acquisition of Berliner Glas Medical and SwissOptic with existing funds and undrawn credit lines. This means we will remain in a highly robust financial position with a healthy balance sheet after completion of the acquisitions, and we see Jenoptik as excellently positioned in financial terms to secure further profitable growth,” says Hans-Dieter Schumacher Chief Financial Officer of JENOPTIK AG.
At the end of the third quarter, cash and cash equivalents of 322.1 million euros were sharply up on the year-end 2020 figure of 63.4 million euros following disbursement of the second tranche of the debenture bonds. Net debt increased slightly to 209.2 million euros, following 201.0 million euros as of December 31, 2020. Due to higher financial debt, the equity ratio fell from 51.5 percent on December 31, 2020 to now 46.0 percent.
Clear focus on photonics growth areas is bearing fruit
Light & Optics with unabated dynamic, profitable growth
Driven by unabated dynamic demand in the semiconductor equipment business, as well as by the positive development in the Biophotonics and Industrial Solutions areas, the Light & Optics division remains on a profitable course of expansion after nine months. The division’s revenue grew by 52.6 percent to 324.3 million euros (prior year: 212.5 million euros). TRIOPTICS contributed 67.1 million euros to this figure (prior year: 0.9 million euros). EBITDA increased even more strongly, from 46.2 million euros to 97.9 million euros. Most of this increase was the result of the very good operating performance and the contribution made by TRIOPTICS. A one-off effect of around 20.7 million euros was also realized in connection with the acquisition of TRIOPTICS. The division’s year-on-year EBITDA margin rose from 21.6 percent to 30.1 percent. Thanks to a doubling of the order intake, to 436.1 million euros (prior year: 217.3 million euros), and an order backlog of 288.0 million euros (31/12/2020: 179.1 million euros), continued growth is also expected to be seen in the coming months.
Light & Production with growing demand from the automotive industry
In view of a gradual recovery in demand from the automotive industry, the Light & Production division’s business is also picking up again, even though the effects of the Covid-19 pandemic are still being felt. The Laser Processing area, in particular, posted an increase, while Metrology and Automation & Integration saw only slight growth. Overall, the division’s revenue grew by 4.3 percent to 121.3 million euros (prior year: 116.3 million euros). In addition to the increase in revenue, positive effects from the restructuring and cost-cutting measures implemented in the prior year, earnings of 3.6 million euros from the sale of the metrology business for grinding machines, and a one-off effect of 4.9 million euros in connection with the acquisition of INTEROB all contributed to a sharp rise in EBITDA, from 4.6 million euros to 12.6 million euros. The EBITDA margin improved from 4.0 percent to 10.4 percent. The rise in the order intake by 20.7 percent to 143.6 million euros (prior year: 119.0 million euros) reflects the growing demand from the automotive industry. At 96.0 million euros, the order backlog is also significantly up on the figure at year-end 2020 (31/12/2020: 74.7 million euros).
Light & Safety with strong rise in revenue and earnings in third quarter
Development in the Light & Safety division continues to be strongly affected by delays in the supply of electronic components, particularly in the first half of the year, and in the placement of orders in the project business. As a result, the division’s revenue of 72.3 million euros after nine months was still down on the prior-year figure of 82.1 million euros, although a strong revenue increase of 12.2 percent was achieved in the third quarter. The development of EBITDA showed a similar picture: coming in at 8.6 million euros at the end of the first three quarters, it was down on the prior-year figure of 13.5 million euros, but in the third quarter grew by 81.9 percent to 5.3 million euros (prior year: 2.9 million euros). At the end of the nine-month period, the EBITDA margin was 11.9 percent (prior year: 16.5 percent). In general, global demand for traffic safety solutions remains strong, which is reflected in the growth of the order intake, from 66.1 million euros in the prior-year period to a current 86.7 million euros. Compared to the end of 2020, the order backlog increased by more than a third to 61.4 million euros Euro (31/12/2020: 46.0 million euros).
VINCORION with strong increase in earnings and high order backlog
VINCORION generated revenue of 89.8 million euros for the first nine months of 2021, almost on a par with the prior-year figure of 91.0 million euros. While the Aviation area, which was particularly affected by the coronavirus pandemic, posted growth, demand in the Ground Base Air Defense area and in the Rail market declined. Land & Naval Systems showed a stable development. Following the cost-cutting measures also put in place at VINCORION, EBITDA improved considerably from 6.9 million euros to 10.5 million euros over the reporting period. The EBITDA margin grew from 7.5 percent to 11.6 percent. Following project postponements and weaker aviation business caused by the pandemic, the order intake remained below the prior-year level, at 91.5 million euros (prior year: 105.2 million euros). By contrast, the order backlog, worth 169.7 million euros, was still at a good level (31/12/2020: 160.3 million euros).
Continued expansion in high-growth photonics activities
Jenoptik strengthens its global photonics business with the acquisition of Berliner Glas Medical and SwissOptic. The closing of the transaction is expected in the fourth quarter of 2021. In 2022, the new companies are due to contribute around 130 million euros of revenue, with attractive margins. In the coming years, the acquired companies anticipate revenue growth in the low double-digit percentage range. Through these acquisitions, Jenoptik is not only significantly expanding its attractive semiconductor equipment and medical technology business, but is also strengthening its product and technology portfolio and its global presence, particularly in Asia. The purchase price is around 300 million euros.
Jenoptik confirms forecast for full-year 2021
Based on good operating performance in the first nine months of 2021 and very good order figures, the Executive Board confirms the full-year guidance raised in July. Revenue of between 880 and 900 million euros and an EBITDA margin of between 19.0 and 19.5 percent are expected for the 2021 fiscal year.
The full Quarterly Statement on the first nine months of 2021 is available in the “Investors/Reports and Presentations” section of the Jenoptik website. Images for download can be found in the Jenoptik image database at media.jenoptik.com.
This announcement can contain forward-looking statements that are based on current expectations and certain assumptions of the management of the Jenoptik Group. A variety of known and unknown risks, uncertainties and other factors can cause the actual results, the financial situation, the development or the performance of the company to be materially different from the announced forward-looking statements. Such factors can be, among others, pandemic diseases, changes in currency exchange rates and interest rates, the introduction of competing products or the change of the business strategy. The company does not assume any obligation to update such forward-looking statements in the light of future developments.
