MDAX-listed Gerresheimer has completed the first quarter of 2015 on target. In more than 40 plants around the world, the Duesseldorf-based Group manufactures glass and plastic pharma packaging and drug delivery devices for safe and easy application of drugs such as insulin pens and asthma inhalers. “The first quarter went in line with our forecast. As expected, revenues were moderate and earnings were as good as anticipated. Our large medium-term projects are running to plan. We are on track and confirm our guidance for this financial year,” said Uwe Röhrhoff, CEO of Gerresheimer AG.
The Company generated revenues of EUR 301.8m in the first quarter of financial year 2015 (December 1, 2014 to November 30, 2015), marking growth of 1.4% on the prior-year quarter. On an organic basis, meaning adjusted for exchange rate effects as well as for acquisitions and divestments, the Group saw an anticipated revenue decrease in the first quarter by 2.4%. Demand for glass pharmaceutical primary packaging was weak as expected, above all in the USA. Gerresheimer consequently extended the holiday shutdowns at a number of US production locations beyond the New Year. Revenues increased in medical systems, most notably inhalers, as well as in plastic primary pharma packaging. Engineering and tooling revenues returned to normal after the record set in the prior-year quarter. Laboratory glassware revenues were slightly down as anticipated.
The Company achieved a significantly larger increase in adjusted EBITDA, which was up 7.2% from EUR 47.6m in the prior-year quarter to EUR 51.0m. At constant exchange rates, adjusted EBITDA stood at EUR 50.2m. The adjusted EBITDA margin was 16.9% in the first quarter of 2015, an improvement on the 16.0% recorded in the comparative period. Net income was EUR 12.7m in the first quarter of 2015, EUR 2.4m higher than in the prior-year quarter. Earnings per share increased correspondingly by 20.7% to EUR 0.35. The figure for the prior-year quarter was EUR 0.29.
Gerresheimer incurred capital expenditure of EUR 13.9m in the first quarter of 2015, compared with EUR 21.7m in the prior-year quarter. Major part of capital expenditure was accounted for by glass primary packaging plants. The focus was on capital expenditure on vial and cartridge machinery as well as on routine furnace overhauls. Production capacity expansion for medical plastic systems such as inhalers also continued in the Czech Republic and the USA.
The Company’s unaltered expectations for financial year 2015, in each case at constant exchange rates and without acquisitions or divestments, are as follows: Gerresheimer expects organic revenue growth of between 1% and 3%. This corresponds to a revenue corridor of some EUR 1,300m to EUR 1,330m. Gerresheimer anticipates an increase in adjusted EBITDA in a target corridor of between EUR 255m and EUR 265m. Capital expenditure in financial year 2015 will amount to around 9% and 10% of revenues at constant exchange rates.
For financial years 2016 to 2018, the Company expects annual organic revenue growth of 4% to 6% on average. For the adjusted EBITDA margin, Gerresheimer is aiming at a target of 21% in 2018. To attain these targets, an annual investment volume in the range of 9% to 10% of revenue at constant exchange rates will be required.