Gerresheimer AG: Gerresheimer presents strong fourth quarter
DGAP-News: Gerresheimer AG
/ Key word(s): Annual Results/Quarter Results
Gerresheimer presents strong fourth quarter
Duesseldorf, February 18, 2021-Gerresheimer AG posted strong growth in the fourth quarter of 2020 and landed inside the target range despite the negative impact of the COVID-19 pandemic. "Business in the fourth quarter was very strong. It was the best quarter in the Company's history. Despite the negative impact of the coronavirus pandemic, especially in our cosmetics business, we reached our goals for 2020. The successful acceleration of growth in large parts of our core business demonstrates the effectiveness of our measures and makes us very confident about our business performance in the next few years. We continued to focus on implementing our strategic process in 2020. We are transforming our Gerresheimer into a growth company as innovation leader and solutions provider," said Dietmar Siemssen, CEO of Gerresheimer AG. "We are mobilizing the entire Company. We have set ourselves ambitious goals with our strategy. We aim to accelerate our revenue growth in 2021 and achieve high single-digit growth rates in the medium term. We let our shareholders share in our success. The Management Board and Supervisory Board are proposing a dividend of 1.25 Euro per share for the financial year 2020, the tenth increase in a row."
Gerresheimer AG generated revenues of 403m Euro in the fourth quarter, representing organic growth of 7.3% in the core business comprising the Plastics & Devices and Primary Packaging Glass Divisions. The Gerresheimer Group generated revenues of approximately 1,419m Euro in the financial year 2020. Organic growth in the core business totaled 3.8%.
The Plastics and Devices Division recorded organic growth of 6.0 % in the fourth quarter. This was attributable in particular to the syringe business as well as the Medical Plastic Systems business, each of which recorded double-digit growth rates. Alongside the strong syringe business, sales of inhalers, insulin pens, and plastic packaging contributed to the positive development in the financial year 2020 with an organic growth of 4.7 %.
The Primary Packaging Glass Division recorded an organic growth rate of 9.1 % in the fourth quarter 2020. This good result was underlined by first significant revenues from sales of innovative products like Gx ELITE Glass and ready-to-fill vials. Demand for high-quality perfume flacons was down substantially year on year in the financial year 2020 because of COVID-19. Nevertheless the Primary Packaging Glass Division showed an organic growth of 2.7 %. Excluding the cosmetic business the organic growth in this division was 6.7 % in 2020.
In the fourth quarter 2020, Gerresheimer recorded first significant revenues from vials for Covid-19 vaccinations. Gerresheimer has significantly expanded its production capacity for injection vials. This has seen the Company embrace its responsibilities and make a key contribution to combating the pandemic by supplying glass vials to be filled with vaccines.
Adjusted EBITDA in the fourth quarter of 2020 came to 100m Euro. In the core business, adjusted EBITDA rose organically by 6.5 % compared to the prior-year quarter. The Group's adjusted EBITDA margin in the fourth quarter of 2020 stood at 24.8 %. At 42m Euro, adjusted net income was up significantly on the prior-year quarter.
The Gerresheimer Group generated adjusted EBITDA of 310m Euro in the financial year 2020, with adjusted EBITDA growing organically by 7.9 % in the core business. The Group's adjusted EBITDA margin was 21.9 % and adjusted net income came to 124m Euro. This produced adjusted earnings per share of 3.90 Euro, of which the Company plans to distribute as dividend 1.25 Euro per share. Adjusted EBITDA leverage on November 30, 2020, was 3.0x.
Medium term (core business, at constant exchange rates):
The Annual Report 2020 is available here:
1) The core business consists of the Plastics & Devices and the Primary Packaging Glass divisions; for adjusted EBITDA purposes also including head office/consolidation expenses.
2) 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.
3) Adjusted net income: Net income before amortization/impairment losses of fair value adjustments, restructuring expenses, the balance of one-off income and expenses, and the related tax effects.
4) Adjusted earnings per share, attributable to shareholdes of Gerresheimer AG, calculated on the basis of 31.4m shares.
5) 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.
6) The disclosed figures take into account various necessary adjustments in the financial year 2019 due to the cancellation of a project to develop a micro pump (see corporate news from Feb. 19, 2020 for further details) as well as the effects from the deconsolidation of the Argentinian subsidiary.
7) The change has been calculated on a EUR k basis.
18.02.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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|EQS News ID:||1169221|
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