- Carl Zeiss Meditec wants to cut costs even more
Optical and medical technology giant Carl Zeiss Meditec is set to tighten its belt even further. In the 2024/25 fiscal year, the company plans to save a low to mid-eight-figure sum through additional measures, it announced from Jena. The recent acquisition, Dutch Ophthalmic Research Center, will not be affected by this.
"A recovery of the markets may take significantly longer than initially expected at the start of the fiscal year," said CEO Markus Weber. However, there are initial signs in order intake that the situation in the business with devices and consumables is stabilizing.
In the first nine months of the current fiscal year, the group's revenue decreased by 1.5 percent to just under 1.5 billion euros. Operating profit plummeted by a third to just under 163 million euros. Net profit came in at around 117 million euros, down from around 206 million the previous year.
The group aims to further reduce costs in sales and marketing. CEO Weber also wants to extract more from the well-stocked innovation pipeline, optimize production costs, and increase productivity in marketing. In the long term, the company is targeting higher profitability.
Back in June, the medical technology group had already lowered its targets for the current fiscal year (ending in September). For the full year, Carl Zeiss expects around 2 billion euros in revenue. The latest acquisition is expected to contribute an additional 100 million euros to sales in the second half of the fiscal year. Adjusted earnings (EBIT) are expected to be between 225 and 275 million euros.
Despite the financial challenges faced by Carl Zeiss Meditec, the Dutch Ophthalmic Research Center acquisition will continue unaffected. Regardless of the savings planned in the Netherlands, the company remains committed to boosting profitability through cost reductions in sales and marketing, optimizing production costs, and leveraging its innovation pipeline.
