Gerresheimer a leading global partner to the pharma and healthcare industries closed the financial year with success. With a strong fourth quarter, Gerresheimer increased revenues at constant exchange rates by 4.3 per cent from 1,348.3m euros to 1,406.7m euros in the financial year 2018. Reported revenues, meaning after exchange rate changes and acquisitions, grew in the financial year 2018 by 1.4 per cent to 1,367.7m. euros. Organically revenues were up 3.4 per cent on the prior year.
The business with injection vials, ampoules and cartridges in the US saw a clear recovery in 2018. Molded glass also progressed well, with cosmetic glass products experiencing especially strong demand. Plastic vials for prescription drugs sold well in the US in 2018, as did plastic pharmaceutical packaging in India and South America. In Europe, plastic pharmaceutical products did slightly better than in the prior year. Syringe sales were also slightly up on the prior-year figure. Medical plastics systems showed only marginal growth as Gerresheimer had lost a contract for inhalers in Europe. As a result, the Company decided to close the affected plant in Kuessnacht, Switzerland, and implement further reorganization measures in that business. Inhaler production performed very well in the USA, on the basis of which Gerresheimer won a follow-up order for its plant in Horsovsky Tyn, Czech Republic.
Adjusted EBITDA at constant exchange rates was 308.0m euros in the financial year 2018 compared with 310.8m euros in the prior year. Three one-off effects compared with the prior year must be taken into account here. Firstly, an expense of 1.4m euros was recognized in the financial year 2018 for negative impacts in connection with the exemption from network charges granted to large electricity-consuming enterprises. Secondly, final fair value measurement of the put option for acquisition of the remaining 25 per cent of shares in Triveni resulted in recognition of an expense of 1.1m euros after an income of 3.6m euros in the prior year. Thirdly, at constant exchange rates, adjusted EBITDA for the new Advanced Technologies Division is 3.0m euros for the financial year 2018. Excluding these three one-off effects, adjusted EBITDA at constant exchange rates would have been 307.5m euros and thus at the same level as in the prior year. Reported adjusted EBITDA in the financial year under review amounts to 298.6m euros for an adjusted EBITDA margin of 21.8 per cent
Net income, at 131.1m euros in 2018, was significantly up on the103.1m euros prior-year figure. Adjusted net income after non-controlling interests came to 178.0m euros, compared with 127.5m euros in the prior year. These improvements are mainly attributable to the positive impacts of the US tax reform. In July 2018, Gerresheimer acquired Sensile Medical, a Swiss technology company. Sensile Medical is a leader in the field of micropump technology. Gerresheimer incorporated Sensile Medical into the newly established Advanced Technologies Division. The focus of this division is on the development and manufacture of smart drug delivery systems.
Net financial debt increased due to the acquisition of Sensile Medical and amounted to 886.4m euros as of 30 November 2018, compared with 712.7m euros as of the prior-year reporting date. Adjusted EBITDA leverage (net financial debt to adjusted EBITDA) temporarily rose to 3.1x. Gerresheimer return on capital employed (Gx ROCE), an important longterm performance indicator, was negatively impacted in the short term during the financial year 2018, notably due to the Sensile Medical acquisition, and came to 10.7 per cent, compared with 12.9 per cent a year earlier.
The Company set the course for further productivity gains and growth in 2018 with 114.7m euros in capital expenditure. Capital expenditure in the Plastics and Devices Division focused on the expansion of inhaler production in the USA and the Czech Republic, additions to the product portfolio and enlargement of production capacity. In the Primary Packaging Glass Division, capital expenditure mainly related to scheduled furnace repairs in the US and Germany, production plant modernization and automation, and expansion of finishing capabilities at the German cosmetic glass plant in Tettau.
Dietmar Siemssen CEO of Gerresheimer AG commented “We have a sound plan for 2019, which entails building up further growth impetus in the medium and long term. At the same time, we will continue to strive for excellence, sharpen our customer focus and foster our workforce. In addition to our strong core business, we will identify new projects and areas, which will drive sustainable, profitable growth, making Gerresheimer even more successful,”.
The full Annual Report is available at www.gerresheimer.com/en/investor-relations/reports