Gerresheimer achieves 1.5% revenue increase in 9-month FY24 results

GERMANY – Gerresheimer AG, a global provider of healthcare, beauty, and drug delivery systems, has reported a 1.5% revenue increase, reaching €1.46 billion (US$1.63 billion) for the first nine months (9M) of financial year 2024 (FY24).

This shows a slight rise from the €1.44 billion (US$1.59bn) recorded during the same period in FY23.

The company’s adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose to €292.7 million (US$324.02m), up from €285.2 million (US$315.72m) in the first nine months of the previous fiscal year.

Gerresheimer’s adjusted EBITDA margin (currency-adjusted) saw a modest improvement, reaching 20.0% in 9M FY24, compared to 19.8% in FY23.

This growth has been largely driven by the strong performance of the Plastics & Devices division, which experienced a surge in demand for innovative and customized solutions.

However, Gerresheimer’s Primary Packaging Glass division faced challenges due to ongoing destocking effects.

The Plastics & Devices segment reported a significant revenue increase, rising to €820.1 million (US$907.85m) in 9M FY24 from €754.8 million (US$835.56m) in the same period in FY23.

The division’s adjusted EBITDA grew to €208.5 million (US$230.81m), with its adjusted EBITDA margin expanding by 160 basis points to 25.4%.

In contrast, the Primary Packaging Glass division saw revenue decline to €648.0 million (US$717.34m), while its adjusted EBITDA fell to €119.7 million (US$132.51m).

For the full fiscal year 2024, Gerresheimer has revised its organic revenue growth forecast to between 3% and 4%, down from the previously anticipated 5% to 10%.

Adjusted EBITDA expectations have also been adjusted to a range of €415 million (US$459.40m) to €430 million (US$476.01m).

Additionally, the company now projects adjusted earnings per share (EPS) growth of 2% to 8%, a decrease from the earlier estimate of 8% to 12%.

Gerresheimer CEO Dietmar Siemssen acknowledged the revision, “Revenue growth in 2024 will be lower than anticipated due to reduced demand in our Tubular Glass business.

“However, our growth prospects remain strong, especially in high-growth markets such as large molecule biologics, where we see robust demand.”

In May 2024, Gerresheimer strengthened its European presence by entering a purchase agreement to acquire Blitz LuxCo, the holding company of Bormioli Pharma.

This acquisition enhances Gerresheimer’s position as a leading global partner for the pharmaceutical and biotech industries, particularly in Southern Europe.

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