Gerresheimer Q3 revenues up 2.2% to EUR 323.9m

Gerresheimer AGOct 8 2014

Gerresheimer AG again increased revenues in the third quarter of financial year 2014. "Our products continue to enjoy high demand. We saw solid growth in the third quarter, although growth was a little bit slower than previously expected. For this reason, we are making our outlook for 2014 more specific. We will continue to invest in growth projects and expand our production capacities worldwide," said Uwe Röhrhoff, Chief Executive Officer of Gerresheimer AG. As one of the leading partners to the pharma and healthcare industry worldwide, Gerresheimer AG develops and produces glass and plastic packaging for drugs and cosmetics along with complex drug delivery products such as insulin pens, asthma inhalers and prefillable syringes. 

Gerresheimer again increased revenues in the third quarter of financial year 2014 (December 1, 2013 to November 30, 2014). Revenues came to EUR 323.9m, representing growth of 2.2%. At constant exchange rates, revenues grew by 3.2% compared with the prior-year quarter. The main driver of revenue growth was the pharmaceutical plastic packaging business as well as the engineering and tooling business, which typically precedes mass production of medical plastic systems such as insulin pens and asthma inhalers. Revenues in the prefillable syringe system business increased slightly, as did laboratory glassware revenues. Glass primary packaging took a revenue hit, primarily due to destocking by some of the US pharmaceuticals customers. In addition, less pharmaceutical glass was delivered in the US in the third quarter given that regulatory requirements forced some pharmaceutical companies to endure production halts.

Gerresheimer improved adjusted EBITDA slightly, from EUR 61.6m in the prior-year quarter to EUR 62.1m in the third quarter of 2014. The adjusted EBITDA margin was 19.2% in the third quarter, slightly below the 19.4% margin in the comparative period. Net income for the third quarter totaled EUR 19.8m, slightly higher than the figure of EUR 19.5m for the same period of the prior year. Adjusted earnings per share were EUR 0.67 in the third quarter, as in the prior-year quarter.

The Gerresheimer Group's capital expenditure in the third quarter of 2014 came to EUR 22.4m. Capital expenditure continued to focus on adding production capacity for medical plastic systems such as insulin pens and inhalers in Horsovsky Tyn, Czech Republic, and Peachtree City, USA.

Outlook 

Despite a more difficult market environment for Gerresheimer pharmaceutical customers in the US and potential further limitations on revenue growth for customers targeting the Eastern European market, Gerresheimer anticipates revenue growth of around 4% at constant exchange rates for financial year 2014. Gerresheimer expects adjusted EBITDA for financial year 2014 to be between EUR 255m and EUR 258m at constant exchange rates. Capital expenditure in financial year 2014 will, as before, represent some 9% to 10% of exchange rate adjusted revenues.