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Gerresheimer AG: Gerresheimer business model robust

DGAP-News: Gerresheimer AG / Key word(s): Quarterly / Interim Statement
09.04.2020 / 07:00
The issuer is solely responsible for the content of this announcement.

Gerresheimer business model robust

  • Stable business model as key supplier to pharma and healthcare industry
  • Gerresheimer sustains growth path. Revenue guidance for 2020 in the mid single-digit percentage range and adjusted EBITDA margin of around 21% confirmed
  • Refinancing of EUR 190m promissory loan maturing in November 2020 secured ahead of time
  • First quarter level with prior year, as expected: revenues EUR 304m, adjusted EBITDA EUR 51m

Duesseldorf, April 9, 2020-Gerresheimer AG's stable business model has stood its ground in the current challenging global environment. "We are a key supplier to the pharma and healthcare industry. In the current situation, our pharmaceutical primary packaging and drug delivery devices are more important than ever. We play a crucial role in supplying the population with medical drugs. This makes us part of the critical infrastructure in each country we serve. Delivering on this responsibility, we do everything in our power, together with our customers and our dedicated workforce, to safeguard our production and hence keep patients supplied worldwide. We confirm our growth forecast for 2020 and continue to work on implementing our growth strategy for the years ahead," said Dietmar Siemssen, CEO of Gerresheimer AG.

After 2019, 2020 is another year of major capital expenditure at Gerresheimer. This centers on growth projects, building up capacity, process optimization and digitalization. Inhaler production is being expanded at the plant in the Czech Republic. In North Macedonia, Gerresheimer is building a new plant to produce medical plastic systems and syringes. Capacity for primary pharmaceutical plastic packaging is being expanded in China, India and Brazil. The Company is investing in the digitalization of its production and quality processes as well as in smart, connected products.

Gerresheimer generated revenues of EUR 304m in the first quarter 2020, compared to EUR 309m in the prior-year quarter. The core business grew slightly, while there were negative effects from the changeover in the business model at acquired Sensile Medical. Business with pharma bottles, injection vials, ampoules and cartridges performed well worldwide, especially in North America. Good revenue growth was generated in the first quarter 2020 with prefillable syringes. The first quarter 2020 brought an increase in business with engineering and tooling for new medical plastic products. Revenues from prescription drug plastic packaging for American pharmacies were temporarily down in the first quarter 2020.

Adjusted EBITDA stood at EUR 51m in the first quarter of 2020, compared to EUR 54m in the prior-year quarter. Excluding negative effects from the changeover in the business model at Sensile Medical, adjusted EBITDA in our core business was consequently on a par with the prior-year period. Adjusted net income came to EUR 14m in the first quarter of 2020. First-quarter 2020 adjusted earnings per share after non-controlling interests amounted to EUR 0.43.

Net financial debt stood at EUR 1,053m at the end of February 2020. Adjusted EBITDA leverage was 3.4x. Gerresheimer successfully secured the refinancing of the EUR 190m promissory loan ahead of its November 2020 maturity date by way of an agreed bridging loan commitment with a two-year term. A new promissory loan issue to replace the loan commitment is planned as soon as a favorable time window presents itself.

Guidance for 2020

Gerresheimer's forecast for the financial year 2020 is unchanged:

- Revenue growth in the mid single-digit percentage range

- Adjusted EBITDA margin of around 21%

- Capital expenditure amounting to roughly 12% of revenues

Indications for subsequent years

- Annual organic revenue growth in the mid single-digit percentage range

- Targeted medium-term adjusted EBITDA margin of 23%

- Annual capital expenditure of between 8% and 10% of revenues

The quarterly statement for the first quarter 2020 is available here:

About Gerresheimer
Gerresheimer is a leading global partner to the pharma and healthcare industry. With specialty glass and plastic products, the Company contributes to health and well-being. Gerresheimer has worldwide operations and around 10,000 employees manufacture products in local markets close to its customers. With plants in Europe, North America, South America and Asia, Gerresheimer generates revenues of approximately EUR 1.4bn. Its comprehensive product portfolio includes pharmaceutical packaging and products for safe and simple drug delivery: insulin pens, inhalers, micro pumps, prefillable syringes, injection vials, ampoules, bottles and containers for liquid and solid medicines with closure and safety systems, as well as packaging for the cosmetics industry.

Press contact
Jens Kürten
Group Senior Director Communications & Marketing
Phone +49 211 6181-250
Telefax +49 211 6181-241

Investor Relations contact
Jens-Philipp Briemle
Corporate Senior Director Investor Relations
Phone +49 211 6181-314
Telefax +49 211 6181-121

Group Key Figures (IFRS; Financial Year end November 30)

Results of Operations during Reporting Period in EUR million Q1 2020 Q1 2019 Change in %5)  
Revenues 303.9 308.5 -1.5  
organic     -1.8  
Adjusted EBITDA1) 51.1 145.9 -65.0  
organic     -8.9 6)
in % of revenues 16.8 47.3    
Results of operations 11.8 109.0 -89.1  
Adjusted net income2) 13.6 109.6 -87.7  
Adjusted earnings per share3) in EUR 0.43 3.48 -87.6  
Net Assets as of Reporting Date in EUR million        
Equity ratio in % 35.5 36.9 -140bps  
Capital expenditure 25.7 16.7 53.4  
Net financial debt 1,053.1 939.1 12.1  
Adjusted EBITDA leverage4) 3.4 2.4 -  
Financial and Liquidity Position
during Reporting Period in EUR million
Cash flow from operating activities -45.1 -16.7 >100.0  
Cash flow from investing activities -32.8 -37.2 -11.7  
Free cash flow before financing activities -77.9 -53.9 44.6  

1) Adjusted EBITDA: Net income before income taxes, net finance expense, amortization/impairment losses of fair value adjustments, depreciation and amortization, impairment losses, restructuring expenses, and one-off income and expenses.

2) Adjusted net income: Net income before amortization/impairment losses of fair value adjustments, restructuring expenses, portfolio adjustments, the balance of one-off income and expenses, and related tax effects.

3) Adjusted earnings per share after non-controlling interests divided by 31.4m shares.

4) Adjusted EBITDA leverage: The relation of net financial debt to adjusted EBITDA of the last twelve months according to the credit agreement currently in place.

5) The change has been calculated on a EUR k basis.

6) Without the changeover effects from the accounting standard IFRS 16 'Leases', which will be applicable for us from December 1, 2019.

09.04.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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Language: English
Company: Gerresheimer AG
Klaus-Bungert-Str. 4
40468 Düsseldorf
Phone: +49-(0)211/61 81-314
Fax: +49-(0)211/61 81-121
Indices: MDAX (Aktie)
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1019227

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Last Updated: 09-Apr-2020