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Gerresheimer AG: Gerresheimer on track for strong second half-year

DGAP-News: Gerresheimer AG / Key word(s): Quarter Results/9 Month figures
13.10.2020 / 07:00
The issuer is solely responsible for the content of this announcement.

Gerresheimer on track for strong second half-year

- Third quarter on schedule

- Group revenues EUR 349m; 2.1% organic revenue growth in core business

- Adjusted EBITDA increases by 4.1% to EUR 75m

- Significant improvement in free cash flow to EUR 38m

- Strong fourth quarter 2020 expected

- Guidance for 2020 confirmed

Duesseldorf, October 13, 2020-Gerresheimer AG delivered profitable growth in its core business in the third quarter of 2020 and confirmed its guidance for 2020 despite temporarily lower demand for high-quality perfume flacons due to Covid-19. "We are working together with vaccine manufacturers to prepare for the global Covid-19 vaccination campaigns. For this purpose, we are building additional capacity for the production of injection vials. Beyond this, there are numerous growth opportunities for us. And we are consequently implementing our strategy for profitable and sustainable growth. We are investing in our Company's future, growing profitably and expect a strong fourth quarter," said Dietmar Siemssen, CEO of Gerresheimer AG.

On the basis of 2.1% organic growth in its core business, Gerresheimer generated revenues of EUR 349m in the third quarter of the financial year 2020 (June 1 to August 31, 2020). Gerresheimer achieved profitable growth with its glass and plastic primary packaging for liquid and solid drugs, syringes and drug delivery devices such as insulin pens and asthma inhalers. The injection vials produced by Gerresheimer will be an important part of the forthcoming Covid-19 vaccination campaigns, for which Gerresheimer is preparing together with vaccine manufacturers. Gerresheimer continues to invest in additional capacity in this side of the business. Demand for high-quality perfume flacons was down in the last few quarters relative to the prior year due to Covid-19. In the latest quarter, Gerresheimer has been able to offset the lower revenues from cosmetics packaging with higher revenues from drug packaging and drug delivery devices.

The third quarter of 2020 saw an increase in the adjusted EBITDA by 4.1% to EUR 75m. The adjusted EBITDA margin stood at 21.5%. Adjusted net income came to EUR 31m in the third quarter of 2020. Third-quarter 2020 adjusted earnings per share after non-controlling interests amounted to EUR 0.97. Free cash flow in the third quarter was strong amounting to EUR 38m. Adjusted EBITDA leverage was unchanged at 3.2x as of the end of the third quarter of 2020. At the beginning of October, Gerresheimer signed an agreement for a EUR 325m promissory loan on attractive terms. The funds are mainly being used to refinance the five-year promissory loan from 2015. Completion is scheduled for November 10, 2020.

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 third quarter of 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 Communication & Marketing
Phone +49 211 6181-250
Telefax +49 211 6181-241

Investor Relations contact
Carolin Nadilo
Corporate Director Investor Relations
Phone +49 211 6181-220
Telefax +49 211 6181-121

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

Results of Operations during Reporting Period in EUR m Q3 2020 Q3 2019 Change in %5  
Revenues 349.2 358.6 -2.6  
organic     0.4  
Adjusted EBITDA1 75.0 72.2 4.1  
organic     1.86  
in % of revenues 21.5 20.1    
Results of operations 43.8 33.8 29.7  
Adjusted net income2 30.7 30.7 -0.1  
Adjusted earnings per share3 in EUR 0.97 0.96 1.0  
Net Assets as of Reporting Date in EUR m        
Equity ratio in % 33.7 37.5 -380bps  
Capital expenditure 46.9 45.5 3.3  
Net financial debt 1,016.6 1,000.4 1.6  
Adjusted EBITDA leverage4 3.2 2.4 -  
Financial and Liquidity Position
during Reporting Period in EUR m
Cash flow from operating activities 66.7 40.1 66.4  
Cash flow from investing activities -29.0 -61.6 53.0  
Free cash flow before financing activities 37.7 -21.5 >100.0  

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 the related tax effects.

3 Adjusted net income 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.

13.10.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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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: 1140426

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Last Updated: 13-Oct-2020