• Revenues up 1.4 % on the prior-year quarter to EUR 358.6m
• Adjusted EBITDA at EUR 72.2m in third quarter of 2019
• Adjusted net income at EUR 30.7m in third quarter of 2019
• New innovation center for pharmaceutical glass opened in the US
• Successful refinancing by a EUR 550.0m revolving credit facility negotiated with improved conditions
• Guidance for financial year 2019 confirmed
Gerresheimer AG ended the third quarter of the financial year 2019 (June 1, 2019 to August 31, 2019) with a revenue growth of 1.4 %. “Our third quarter went as expected. Business with prefillable syringes and pharmaceutical plastic packaging in particular performed well. We continue on our growth trajectory with a focus on innovation, quality, digitalization and capacity expansion. In late September, we opened an innovation center in the US. There we pool our experts and expertise in glass and drive innovation in pharmaceutical glass,” commented Dietmar Siemssen, CEO of Gerresheimer AG.
Gerresheimer increased revenues by 1.4 % to EUR 358.6m in the third quarter of the financial year 2019, up from EUR 353.7m in the prior-year quarter. The syringe business performed well in the third quarter of 2019. Revenues with primary pharmaceutical plastic packaging also grew. Additionally, the medical plastic systems business did well, notably due to engineering and tooling revenues. Revenues from glass primary packaging once again showed healthy growth in Asia. In Europe they were stable. The positive market trend in North America continues. Demand from a major customer there has temporarily decreased due to his operational problems. In the cosmetics packaging business, the Company is increasingly targeting sustainable solutions, primarily through increased use of recycled glass and recycled plastic resin.
Gerresheimer is pursuing a large number of projects for profitable growth and enhanced productivity. These projects are being systematically implemented and are well on schedule. At the end of September, a Glass Innovation and Technology Center in Vineland (New Jersey, USA) was opened at a major customer event. The center’s purpose is to pool expertise in glass as well as drive innovation in pharmaceutical glass and related processes, including increased digitalization. Located directly adjacent to a Gerresheimer production plant for injection vials and cartridges, the newly built, ultra-modern innovation center allows joint development on site with global pharma customers.
In figures, capital expenditure of EUR 45.5m was incurred in the third quarter of 2019. This was mainly directed at the continued expansion of inhaler production capacity at the Horsovsky Tyn plant in the Czech Republic coupled with further additions to production capacity and to the product portfolio. Other capital expenditure in the quarter under review related to the planned furnace overhaul in Essen, Germany, as well as production line upgrading and automation at various plants.
Third quarter adjusted EBITDA at constant exchange rates came to EUR 71.1m, compared to EUR 69.8m adjusted for one-off effects a year earlier. Adjusted net income in the third quarter of 2019 stood at EUR 30.7m, versus EUR 28.6m excluding also one-off effects in the prior-year quarter. Adjusted earnings per share after non-controlling interests were EUR 0.96 in the third quarter of 2019, compared to a prior-year figure of EUR 0.89 excluding one-off effects. There was a temporary decrease in adjusted EBITDA leverage (net financial debt to adjusted EBITDA over the last twelve months) to 2.4x.
Gerresheimer has negotiated its refinancing on improved conditions. Based on the good business results, the syndicated loan—in the form of a revolving credit facility—was increased by another EUR 100.0m, from EUR 450.0m to EUR 550.0m. Gerresheimer expects a long-term reduction in financing costs by some EUR 1m per year.
Outlook
Gerresheimer’s expectations for the financial year 2019 remain unchanged. They are set out in the following, in each case based on constant exchange rates.
• Revenues are expected to be in the range of approximately EUR 1.4bn to EUR 1.45bn in the financial year 2019.
• For adjusted EBITDA, the Company expects a figure of approximately EUR 295m in the financial year 2019 (plus or minus EUR 5m), versus a comparative figure of EUR 289.1m in the financial year 2018. This does not include EUR 118.5m in other operating income already recognized in the first half of 2019 due to derecognition of contingent purchase price components from the Sensile Medical acquisition.
• Capital expenditure as a percentage of revenues will be approximately 12 % in 2019.
The medium-term indications published on February 14, 2019 remain unchanged.
The full quarterly report is available here: www.gerresheimer.com/en/investor-relations/reports
22.10.2019,
News material on the Site is copyright and belongs to the Company or to its third party news provider, and all rights are reserved. Any User who accesses such material may do so only for its own personal use, and the use of such material is at the sole risk of the User. Redistribution or other commercial exploitation of such news material is expressly prohibited. Where such news material is provided by a third party, each User agrees to observe and be bound by the specific terms of use applying to such news material. We do not represent or endorse the accuracy or reliability of any of the info contained in any news or external websites referred to in the news.
Should the content or the design of these sites violate third parties rights or legal prescriptions, we kindly ask you to send us a respective message without invoice or cost. We guarantee that passages where the claim is considered as justified will be removed immediately, without any necessity to involve any lawyer into this issue. We will reject any claim caused by submission of a honorary note in this regard without any prior contact and confirmation of the issueby us and we reserve the right ssue counter claim ourselves because of violation of aforesaid conditions.