Germany's leading optoelectronics industry (Jenoptik) in the first half of the gold over 4.2 billion

On August 9, local time, Germany's leading optoelectronics company Jenoptik released its 2024 second quarter interim financial results forecast. The financial data show that the company in the challenging market environment still shows strong growth momentum.

In the first half of the year, Jenoptik achieved significant growth in revenue and earnings before interest, taxes, depreciation and amortization (EBITDA), and despite a challenging start, demand picked up in the second quarter, providing a solid foundation for full-year results.

Stefan Traeger, President and CEO of Jenoptik, commented: “In a complex and volatile market environment, Jenoptik has managed to achieve both revenue and profit growth in the first six months, building on its strong position in its core markets and its loyal customer base. We are proud of this and are confident that this growth momentum will continue in the second half of the year. Based on this, we firmly confirm our guidance for 2024.”

Trading in the first half of 2024 achieved a significant double increase in revenue and pre-tax earnings, but order intake remains below year-ago levels (H1 2023).

(Image source: Jenoptik financial report)

Overall performance highlights

Solid revenue growth: In the first half of the year, Jenoptik's total revenues amounted to EUR 540.8 million, up 7.1% year-on-year, driven by the strong performance of the Advanced Photonics Solutions division and the non-photonics business companies. In Europe, the company even achieved significant growth of 18.9%.

Significant improvement in profitability: EBITDA grew to €101.4 million, up 10.7% year-on-year, and the EBITDA margin improved to 18.8%, demonstrating a significant improvement in the company's profitability. Group profit after tax also rose sharply to EUR 40.2 million, with earnings per share of EUR 0.69.

Demand picks up and capacity expansion: Order intake in the second quarter increased by 7.0% year-on-year, and demand in the semiconductor equipment business remained strong, although overall order intake in the first half of the year was slightly lower than in the same period last year. The company is expanding its production capacity as planned, in particular with the construction of a new plant in Dresden, in order to respond to future market demand.

Solid financial and balance sheet position: Free cash flow increased significantly to EUR 41.5 million in the first half of the year, with a cash conversion ratio of 40.9%, an equity ratio of 54.2%, and a net debt to EBITDA ratio of 2.0x, reflecting the company's solid financial structure.

Business Segment Performance Highlights

Advanced Photonic Solutions: Revenue rose by 8.2% year-on-year to €422 million, with the semiconductor equipment business performing particularly well. Despite weak demand in some areas, the division's overall performance remained strong.

Intelligent Mobility Solutions Division: Revenue declined slightly, but order intake remained stable and was less affected by fluctuations in the project business.

Non-Photonics Business Company: Revenue increased by 12.1%, mainly due to higher earnings contributions from the companies Prodomax and HOMMEL ETAMIC. The company decided to further develop HOMMEL ETAMIC internally and to continue to pursue strategic sale opportunities for Prodomax.

Future outlook

The Executive Committee of Jenoptik is optimistic about the performance in FY 2024 and expects to achieve mid-single digit percentage growth in revenues for the full year and maintain EBITDA margins in the range of 19.5%-20.0%. The Company will continue to advance its capacity expansion plans and closely monitor changes in the global political and economic environment to ensure successful achievement of its strategic objectives.

About Jenoptik

Jenoptik is a leading global photonics group focused on two areas: Advanced Photonic Solutions and Smart Mobility Solutions. Headquartered in Jena, Germany, with approximately 4,600 employees and a global presence, Jenoptik holds key positions in the key markets of semiconductors and electronics, life sciences and medical technology as well as smart mobility and is committed to advancing the industry through innovative optical technologies.

Source: OFweek