CZMWF - Carl Zeiss Meditec AG (CZMWF) Q2 2024 Earnings Call Transcript
2024-05-12 07:48:10 ET
Carl Zeiss Meditec AG (CZMWF)
Q2 2024 Earnings Conference Call
May 08, 2024 04:30 AM ET
Company Participants
Sebastian Frericks - Head, IR
Markus Weber - CEO
Justus Wehmer - CFO
Conference Call Participants
Oliver Reinberg - Kepler Cheuvreux
Oliver Metzger - ODDO BHF
Graham Doyle - UBS
Falko Friedrichs - Deutsche Bank
Sezgi Oezener - HSBC
Ed Hall - Stifel
Alexander Galitsa - H&A
Anchal Verma - JPMorgan
Richard Felton - Goldman Sachs
Samuel England - Berenberg
Julien Ouaddour - Bank of America
Presentation
Operator
Hello ladies and gentlemen and welcome to the Carl Zeiss Meditec AG Analyst Conference Call for the Six Months Results 2023/2024. At this time, all participants have been placed on a listen-only mode. The floor will be open for questions following the presentation.
Let me now turn the floor over to your host Sebastian Frericks, Head of Investor Relations.
Sebastian Frericks
Yes. Good morning. Thank you, everybody, for joining our six months 2023/2024 analyst call. As usual, we will take you to through some prepared remarks and then look forward to your questions after that.
I turn the floor over now to our executive management, Dr. Markus Weber and Justus Wehmer. Markus, please go ahead.
Markus Weber
Yes. Thank you so much, Sebastian and also good morning from my side, ladies and gentlemen. Welcome to the six months 2023/2024 Analyst Conference of Carl Zeiss Meditec AG.
So, let's have a brief look at our agenda. I will start off with an overview of the results, then Justus will give more insight into the financials following that I'd like to share a brief update on the closing of the D.O.R.C. acquisition. And then finally, Justus will give you an outlook for the remainder of the fiscal year 2023/2024. And Sebastian already pointed out, afterwards, we will be open to your questions.
So, let's get started. So revenue in six months 2023, 2024 moved more or less sideways, down minus 2.8% in reported terms of €947 million. Adjusted for currency effect, it was almost stable at €968 million. Currency headwinds mostly came from RMB, U.S. dollar, and Japanese yen.
As we have predicted and included in our forecast for the year, ophthalmology has been heavily impacted by destocking of refractive consumables in the Chinese sales channel. I'm very pleased to report that the destocking has been completed in March and we now assess the level of stocks in the sales channel as healthy.
Destocking overall impacted our revenue by roughly €40 million in the first half. Adding back to this impact, revenue would be slightly higher year-on-year even in reported terms.
Microsurgery delivered a solid performance which benefited from order backlog conversion. With enhanced capacity and improved supply chains over the course of quarter two, order backlog was further reduced to a quite healthy level of €276 million.
Order entry was down 9% in the first half, but improved significantly towards the end of the reporting period. Ophthalmology was able to achieve a stable order entry in the second quarter even after accounting for the impact of destocking in China....
Carl Zeiss Meditec AG (CZMWF) Q2 2024 Earnings Call Transcript