Gerresheimer’s revenues increase EUR 297.5M to 0.3% in first quarter 2014

Gerresheimer AGApr 10 2014

Gerresheimer AG, one of the leading partners to the pharma and healthcare industry worldwide, began financial year 2014 with a solid start."I am satisfied with our performance in the first quarter of 2014. Our expectation is unchanged that we will meet our targets for 2014. We will continue to invest in promising projects in Europe, the Americas and emerging markets to lay the basis for further profitable growth," said Uwe Röhrhoff, CEO of Gerresheimer AG.

Gerresheimer generated revenues of EUR 297.5m in the first quarter of financial year 2014 (December 1, 2013 to November 30, 2014), marking 0.3% revenue growth on the prior-year quarter. At constant exchange rates, revenues came to EUR 304.2m, representing growth of 3.2%. As expected, the Primary Packaging Glass and Life Science Research (laboratory glassware) divisions experienced a decline in demand during the first month of the first quarter due to destocking by a number of North American pharmaceutical customers. Demand for cosmetic glass was likewise slow at the beginning of the first quarter. There were already clear signs of improvement by the end of the quarter. Revenues went up substantially on customer-specific drug-delivery devices such as insulin pens, inhalers, prefillable syringe systems and pharmaceutical plastic packaging.

The Company generated adjusted EBITDA of EUR 47.6m in the first quarter of 2014, an increase of 3.3% on the prior-year figure. The adjusted EBITDA margin was 16% in the first quarter, half a percentage point up on the 15.5% prior-year figure. The margin showed a slight improvement across all three divisions. Net income went up by 0.8% to EUR 10.3m. Adjusted earnings per share, at EUR 0.38, exceeded the EUR 0.36 recorded in the prior-year quarter.

As planned, Gerresheimer incurred capital expenditure of EUR 21.7m in the first quarter. Capital expenditure focused on adding production capacity for medical plastic systems such as insulin pens and inhalers in Horsovsky Tyn, Czech Republic, and Peachtree City, USA.

Outlook 

As before, the Company anticipates revenue growth of 4% to 6% at constant exchange rates for financial year 2014. Gerresheimer continues to expect adjusted EBITDA to be in a range of between EUR 250m and EUR 265m at constant exchange rates. Capital expenditure in financial year 2014 will be on a par with the preceding financial year, representing some 9% to 10% of exchange rate adjusted revenues.