JENA (dpa-AFX) - The medical technology group Carl Zeiss Med itec has made a slow start to the new fiscal year due to the reduction of inventories in China and exchange rate effects. Revenue in the first quarter of the fiscal year that began in October rose by one percent to 475 million euros, as the company, which is listed on the Frankfurt Stock Exchange's MDax, announced in Jena on Friday. Adjusted for currency effects, there was an increase of 3.3 percent. The share price rose sharply.

Earnings before interest and taxes (EBIT) of the ophthalmology specialist fell from 60.3 million euros in the same period of the previous year to around 43.5 million euros. "In the meantime, the supply chains have calmed down," said CEO Markus Weber in Jena. He assumes that the special effect of reducing inventories will have an impact in the second quarter.

"We already made it clear last summer that this temporary effect would occur." The coronavirus lockdowns in China in 2022 were the reason for the inventory levels of contact lenses for laser eye treatments, among other things. In order to remain able to deliver, Zeiss Meditec had built up higher inventories, which are now being reduced. According to the Executive Board, China is an important market for the Thuringian company, accounting for around 25 percent of sales. The Executive Board confirmed its forecast for the year that sales will at least match the level of market growth. In addition, the second half of the year will be more profitable.

Investors on the stock market were delighted, as the figures were better than experts had feared. At the day's high, the shares climbed by almost 13 percent to up to EUR 119.60 and were thus worth as much as they were last in May 2023. They recently gained seven percent at the top of the MDax. For the first time in more than a year, Zeiss has exceeded expectations and remains on track to achieve its annual targets, which investors have so far been skeptical about, praised analyst Graham Doyle from the major Swiss bank UBS.

Weber pointed out that Meditec still has a "high need for strategic investments". The recently announced share buyback would not stand in the way of this. CFO Justus Felix Wehmer said that "in the past we have been criticized for our high level of liquidity". The company is still on the lookout for possible company investments or takeovers that complement its own product range.

In December, the takeover of the Dutch Ophthalmic Research Center (DORC) was announced for the first half of 2024. According to Meditec, the transaction is worth 985 million euros.

The Thuringian group employs around 4800 people in Germany and abroad, including more than 2200 in Germany. Zeiss Meditec specializes in lasers, surgical microscopes, devices and artificial lenses for the treatment of eye diseases./red/men/he