[Image: Jenoptik]
On 14 February 2023, the diversified photonics firm Jenoptik, headquartered in Jena, Germany, reported that it had logged a smart increase in financial results for the fiscal year ended December 2022.
The company’s preliminary results showed a gain of more than 30% in revenues over 2021 levels. The company also booked an even heftier 47% increase in earnings before interest, taxes, depreciation and amortization (EBITDA), excluding “one-off” effects in 2021 results tied to several acquisitions. Looking ahead, a large order backlog gives Jenoptik confidence in another strong showing this year—though management noted that the good 2023 forecast “presupposes that geopolitical risks do not worsen.”
Strategic reorientation ongoing
Jenoptik develops and markets a wide range of products in imaging, laser technology, lidar, optical systems and testing, optoelectronics and other areas. The company is currently in the midst of a strategic reorientation—dubbed “Agenda 2025, and unveiled in November 2021—to “accelerate its transformation into a globally leading, pure photonics group.”
The firm does business through an Advanced Photonic Solutions division that encompasses a broad array of technologies, targeting markets in the semiconductor equipment, medical technology, automotive and mechanical-engineering industries; and a Smart Mobility Solutions division focused on transportation and road safety applications. It also owns a number of “Non-Photonic Portfolio Companies” that operate under their own brands and provide additional supporting products and services in industrial automation and metrology.
Strong showing in Advanced Photonic Solutions
In its preliminary results for 2022, Jenoptik reported revenues from continuing operations of roughly €980 million (US$1.05 billion), up more than 30% from the €750.7 million recorded in the previous year. Management tied the gain—which constitutes a significant step toward its Agenda 2025 goal of €1.2 billion in revenues—to “sustained strong demand in the Advanced Photonic Solutions division.” Two companies acquired in 2021, BG Medical and SwissOptic Group, also contributed better-than-expected results, according to Jenoptik.
EBITDA for the year expanded to around €184 million, versus €125.2 million in fiscal 2021 (excluding a €30 million one-time bounce in 2021 tied to several recently acquired companies). That signaled a healthy improvement in profitability, with an EBITDA margin of 18.8% in 2022 versus 16.7% in 2021—which the company tied to “an improved product mix and economies of scale.”
Beefy backlog
Based on a strong order backlog, Jenoptik expects strong results to continue in 2023—though the company said the good forecast “presupposes that geopolitical risks do not worsen.”
Jenoptik also experienced a nice boost in orders last year. The firm’s order intake increased roughly 27% to €1.185 billion for 2022 as a whole—with much of the activity again in the Advanced Photonic Solutions division. It ended the year with an order backlog of €734 million, versus €544 million at the close of 2021.
In a press release reporting the preliminary fiscal 2022 results, Jenoptik’s president and CEO, Stefan Traeger, said “Looking at our order intake and backlog, we expect further increases in revenue and earnings in the fiscal year 2023.” The company hopes to achieve revenues of €1.05 to €1.10 billion in 2023, with an EBITDA margin on the order of 19.0%–19.5%. Jenoptik did acknowledge, though, that the forecast could be subject to some geopolitical risk—especially with respect to the ongoing war in Ukraine, “with the sanctions that have been put in place and potential impacts on price developments, energy supplies, and supply chains.”
Jenoptik plans to release its final, audited 2022 numbers at the end of March 2023.