Gerresheimer AG performed in accordance with expectations in the second quarter of 2016.
“We completed this last quarter with very good results. All key earnings indicators show double-digit growth and the revenue trend is in line with our expectations. I am optimistic for the second half of the year,” said Uwe Röhrhoff, CEO of Gerresheimer AG.
Pharmaceutical packaging manufacturer Gerresheimer boosted revenues by 4.0% to EUR 370.5m in the second quarter of financial year 2016 (March 1 to May 31, 2016). On an organic basis, meaning adjusted for exchange rate effects, acquisitions and divestments, revenues held their level from the prior-year quarter. Strong growth was generated first and foremost in the pharmaceutical primary packaging and device businesses, both in North America and in Europe. Emerging market revenues were down, on the other hand, as a result of a temporary slow-down. Tooling and engineering revenues, which are normally subject to sharp fluctuations, were below their prior-year level due to the billing cycle.
The second quarter of 2016 saw adjusted EBITDA increase by 17.5% to EUR 84.7m. The adjusted EBITDA margin, at 22.8% in the second quarter, was significantly higher than the 20.2% reported in the prior-year quarter. Net income reached EUR 31.1m in the second quarter, EUR 8.7m above the figure a year earlier. Adjusted net income came to EUR 37.7m in the second quarter, compared with EUR 29.2m in the prior-year quarter. Adjusted earnings per share were over 34.5% up on the prior-year quarter, climbing to EUR 1.13 (versus EUR 0.84).
Gerresheimer incurred EUR 21.3m in capital expenditure in the second quarter, compared with EUR 19.9m in the comparative prior-year period. Capital spending in recent months was once again focused on standardizing and modernizing machinery for the manufacture of injection vials and cartridges worldwide. There were also scheduled furnace overhauls. Additional items were the purchase of a site for a new plastic packaging location in Brazil and expansion of the medical plastic systems plant in Peachtree City, USA.
Outlook
Gerresheimer’s expectations for financial year 2016, in each case assuming constant exchange rates and excluding acquisitions and divestments, remain as set out in the following. For the US dollar — which going forward will account for about a third of Group revenues in 2016 and is likely to have the largest currency impact on the Group currency — Gerresheimer has assumed an exchange rate of approximately USD 1.12 to EUR 1.00.
In financial year 2016, the Company continues to anticipate Group revenues of around EUR 1.5bn (plus or minus EUR 25m) on a constant exchange rate basis. The Group revenues of around EUR 1.5bn correspond to revenue growth of some 9% at constant exchange rates compared with revenues in financial year 2015, and organic revenue growth of between 4% and 5%. It is anticipated that adjusted EBITDA will increase to some EUR 320m (plus or minus EUR 10m) at constant exchange rates in financial year 2016. Capital expenditure in financial year 2016 is forecast to account for around 8% of revenues at constant exchange rates.
In addition, the Company confirmed its indication for the financial years 2016 to 2018, in each case stated at constant exchange rates and assuming an exchange rate of USD 1.12 to EUR 1.00. Gerresheimer is aiming for average annual organic revenue growth of between 4% and 5% for the period from 2016 to 2018. For the adjusted EBITDA margin, the Group has set a target of around 22% for financial year 2018. In order to meet these targets, Gerresheimer will in all probability incur annual capital expenditure amounting to around 8% of revenues at constant exchange rates.
The full quarterly report is available at: www.gerresheimer.com/en/investor-relations/reports.