Carl Zeiss Meditec Q2 Earnings Call Highlights

Carl Zeiss Meditec (ETR:AFX) reported weaker first-half results for fiscal 2025/2026 and outlined a wide restructuring program aimed astatine restoring profitability implicit the adjacent 3 years, arsenic absorption pointed to currency headwinds, brushed instrumentality request and unit successful China’s intraocular lens business.

Chief Executive Andreas Pecher said the company’s apical enactment and net successful the 2nd 4th “still remained weak,” chiefly owed to overseas speech effects and an unfavorable merchandise mix, including little intraocular lens income successful China. For the archetypal six months, bid introduction totaled EUR 1.038 billion, down 5.2% twelvemonth implicit year, oregon 2.3% connected a currency-adjusted basis. Revenue fell 5.7% to EUR 991 million, oregon 2.8% connected a constant-currency basis.

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Adjusted EBITDA declined to EUR 60.5 million, with the adjusted EBITDA borderline falling to 6.1% from 10.7% a twelvemonth earlier. Reported EBITDA was EUR 39 million, representing a 3.9% margin. Pecher attributed the driblet successful profitability to antagonistic currency effects, an unfavorable merchandise premix and antagonistic operating leverage, portion noting that halfway operating expenses remained stable.

Ophthalmology Weighed Down by China IOL Issues

Chief Financial Officer Justus Felix Wehmer said the Ophthalmology strategical concern portion posted gross of EUR 754 cardinal successful the archetypal half, down 6.7% twelvemonth implicit year, oregon 4.2% connected a currency-adjusted basis. Revenue declined crossed some instrumentality and consumables.

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Wehmer said the conception was affected by speech rates, the nonaccomplishment of bifocal intraocular lens income successful China pursuing the revocation of a licence for 1 product, and the scrapping of recalled bifocal IOLs. The scrapping was completed during the 2nd 4th and had a EUR 6 cardinal interaction connected some gross and outgo of goods sold.

The Ophthalmology EBITA borderline dropped to 1.5%, down 7.6 percent points from a twelvemonth earlier. Wehmer said gross borderline was pressured by currency, the bifocal IOL scrapping and premix effects, portion operating expenses were affected by a EUR 13 cardinal bonzer write-off tied to Infinite Vision Optics. The institution has deprioritized the IVO project, resulting successful an impairment of capitalized probe and improvement assets.

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Management said a successor bifocal IOL has obtained registration support successful China. Wehmer said the institution expects an accidental to relist the merchandise successful China’s adjacent volume-based procurement tender, which it presently expects to statesman successful June oregon July, though pricing and measurement allocation volition beryllium connected the tender outcome.