Global optical technology company Jenoptik has announced it ended the 2020 reporting year with a strong fourth quarter and was able to significantly increase profitability in 2020.
It says this positive development was supported by sustained high demand from the semiconductor equipment industry, the acquisition of TRIOPTICS and a largely stable capital spending by public sector customers. The company used the year that was challenging due to the pandemic to drive forward important strategic decisions for its development into a leading international photonics group, the streamlining of structures and greater cost efficiency.
“At the beginning of 2021, Jenoptik stands for growth, innovation, and profitability even more than it did a year ago. By focusing on growth areas in photonics, we managed the Covid-19 year 2020 well. We are confident for 2021 thanks to an upturn in demand, improved cost efficiency and external growth. We expect revenue growth in the low double-digit percentage range and want to increase profitability to an EBITDA margin of 16.0 to 17.0 percent. Thanks to leading positions in promising future markets, Jenoptik is well positioned to grow profitably also in the medium term,” Dr. Stefan Traeger, President & CEO of JENOPTIK AG comments on the development.
In the 2020 fiscal year, Jenoptik generated revenue of 767.2 million euros, which, as expected, was clearly down on the prior-year figure of adjusted 837.0 million euros, mainly due to the Covid-19 pandemic and structural issues in the automotive industry. As in the prior year, the fourth quarter was strongest, with 262.2 million euros (prior year: adjusted 255.7 million euros). The two companies acquired during the reporting year, TRIOPTICS and INTEROB, contributed 47.2 million euros to annual revenue in 2020. On a regional level, revenue in Asia rose by 9 percent to 105.8 million euros in spite of Covid-19, mainly due to the acquisition of TRIOPTICS. Europe (excl. Germany) remained relatively stable at 226.1 million euros. By contrast, the Americas (195.5 million euros), Germany (214.7 million euros), and the Middle East/Africa (25.2 million euros) were appreciably affected by the impacts of the pandemic. As in the prior year, foreign revenue amounted to around 72 percent.
Thanks to a lower cost of sales, first positive effects from the structural and portfolio measures implemented and tangible cost savings, the gross margin reached 34.2 percent in 2020 and was thus on a par with the prior-year figure of 34.1 percent.
Taking into account expenses for the planned structural and portfolio measures amounting to minus 19.1 million euros (prior year: minus 4.0 million euros), which mainly incurred in the Light & Production division and VINCORION, adjusted EBITDA amounted to 130.7 million euros (prior year: adjusted 138.0 million euros). This resulted in an adjusted EBITDA margin of 17.0 percent (prior year: adjusted 16.5 percent), or 17.6 percent excl. PPA. On a non-adjusted basis, the margin was 14.6 percent (prior year: 15.7 percent). In 2020, TRIOPTICS and INTEROB contributed a total of 6.0 million euros to EBITDA, including PPA of minus 4.6 million euros. Taking into account the lower financial result, due among other things to the acquisitions, and lower taxes, Jenoptik once again achieved markedly positive earnings after tax of 42.7 million euros (prior year: 67.6 million euros) or earnings per share of 0.73 euros (prior year: 1.18 euros), despite the challenging environment.
Jenoptik recorded good growth in order intake in the fourth quarter of 2020, and although a figure of 228.5 million euros was not quite enough to reach the prior-year value of an adjusted 234.0 million euros, it was the highest level of demand in the year covered by the report, assisted by the contribution made by TRIOPTICS. At 739.4 million euros, the order intake for the full year was considerably down on the adjusted prior-year figure of 792.7 million euros. The order backlog, at 460.1 million euros in 2020, was almost at the same good level as in the prior year (adjusted 464.7 million euros). This gives cause for optimism in 2021, especially as 78.5 percent of these orders are expected to be recognised as revenue in the new fiscal year. At the end of 2019, this adjusted figure was just 68.0 percent.