Good news: the return to growth is confirmed after two difficult years in 2020 and 2021. Revenues and operating margins are both at record levels. However, net income is penalized by a heavy tax bill following the disposal of assets related to the recent restructuring.

After two decades of uninterrupted growth, the group had fallen into an air pocket on the eve of the pandemic. Cash generation was plummeting, market opportunities were suddenly fewer, and the urgency was palpable.

A series of acquisitions - Trioptics, Berliner Glas Medical, SwissOptic, for a total of €600 million - over the last two years were to help it get back on track. Things seem to be on the right track, with sales on the rise again and - as we have seen - integrations that are not weighing on margins.

Operating cash flow is also good, reaching a record level despite a rather unfavorable working capital effect. This will be necessary, as the group's investment surface doubles, with annual capex now in the €70-€80 million range.

Free cash flow is thus around €65-€75 million. At a share price of €30, or an enterprise value of €2.2 billion, Jenoptik remains valued as a sustainable growth company at roughly x30 earnings.

The shock treatment of the last two years has paid off. It remains to confirm this success over the long cycle, and to ensure a good return on M&A investments.