- Revenues up 6.3 percent on the prior-year quarter to 308.5 million EUR
- Adjusted EBITDA at 145.9 million EUR in first quarter of 2019 (Q1 2018: 52.6 million EUR), comprising of 53.6 million EUR plus 92.3 million EUR from partial derecognition of contingent purchase price components connected to the Sensile Medical acquisition
- Guidance for adjusted EBITDA at constant exchange rates revised accordingly to approximately 387 million EUR (plus or minus 5 million EUR) for 2019; revenue guidance confirmed without change
- Adjusted earnings per share increased to 3.48 EUR
- New plant for medical plastic systems and pre-fillable syringes being built in Skopje, Republic of North Macedonia
- New inhalation measurement start-up project added in Advanced Technologies Division
Gerresheimer AG closed the first quarter of the financial year 2019 (December 1, 2018 to February 28, 2019) with good growth.
“Our new financial year got off to a good start. Our business and all planned growth projects are on schedule,” said Dietmar Siemssen, CEO of Gerresheimer AG. “This includes the construction of a new plant for medical plastic systems and pre-fillable syringes in Skopje, in the Republic of North Macedonia. In our new Advanced Technologies Division, we have just added a start-up project for inhalation measurement. I am satisfied with the start of the financial year and very optimistic looking ahead to the remainder of 2019.”
Gerresheimer increased revenues by 6.3 percent to 308.5 million EUR in the first quarter of the financial year 2019, compared with 290.4 million EUR in the prior-year quarter.
Sales of injection vials, ampoules and cartridges did well in the first quarter of 2019, as did sales of moulded glass for medicines and cosmetics. Revenues with pre-fillable glass syringes also went up significantly. Plastic pharma packaging sold well in Europe and emerging markets, most notably in Brazil. Demand for plastic containers for prescription drugs was down in the US because there was no repeat of the prior-year quarter’s peak in demand caused by the flu season.
Gerresheimer has launched a large number of projects for profitable growth and enhanced productivity. These projects are being systematically implemented and all are running according to plan. They include a new plant in Skopje, Republic of North Macedonia, which is scheduled to be completed and go into production in 2020. This will create production capacity for medical plastic systems and, in the medium term also for pre-fillable glass syringes. In addition, Gerresheimer has acquired a majority stake in a start-up project for inhalation measurement. Development of the project will continue in the new Advanced Technologies Division.
In figures, capital expenditure of 16.7 million EUR was incurred in the first quarter of 2019. This was mainly directed at an expansion of inhaler production at the Horsovsky Tyn plant in the Czech Republic together with further additions to production capacity and the product portfolio.
Other capital expenditure relates to a planned furnace repair at the moulded glass plant in Essen, Germany, as well as production plant modernization and automation at various plants.
Adjusted EBITDA at constant exchange rates increased from 53.4 million EUR in the prior-year quarter to 145.5 million EUR in the first quarter of 2019. This includes a one-off effect amounting to 92.3 million EUR in other operating income due to derecognition of contingent purchase price components from the Sensile Medical acquisition.
Additionally, there was no adjusted EBITDA in the first quarter of 2019 from the inhaler contract lost in 2018. Without these two one-off effects, adjusted EBITDA at constant exchange rates would have been 0.9 million EUR higher than in the prior-year quarter, at 53.2 million EUR in the first quarter of 2019. Reported adjusted EBITDA came to 145.9 million EUR, compared with 52.6 million EUR in the first quarter of 2018.
Net income stood at 99.3 million EUR in the first quarter of 2019, which was 50.1 million EUR higher than in the prior-year quarter. Adjusted net income after non-controlling interests amounted to 109.2 million EUR, compared with a prior-year figure of EUR 58.1m. First quarter 2019 was influenced by the positive effect of derecognizing contingent purchase price components. Whilst in the prior-year quarter, tax income was substantially affected by the remeasurement of deferred taxes due to the US tax reform (43.6 million EUR). Adjusted earnings per share after non-controlling interests came to 3.48 EUR in the first quarter of 2019, compared with a prior-year figure of 1.85 EUR.
Adjusted EBITDA leverage (net financial debt to adjusted EBITDA) temporarily decreased to 2.4x. The decrease relates to the significantly higher adjusted EBITDA.
Outlook
Gerresheimer’s expectations for the financial year 2019 are as set out in the following, in each case based on constant exchange rates.
- Revenues are expected to be in the range of approximately 1.4 billion EUR to 1.45 Billion EUR in the financial year 2019.
- For adjusted EBITDA, the Company now expects a figure of approximately 387 million EUR in the financial year 2019 (plus or minus 5 million EUR), versus a comparative figure of 289.1 million EUR in the financial year 2018. Revision of the previous guidance of 295 million EUR (plus or minus EUR 5m) relates to the other operating income of 92.3 million EUR already recognized in the first quarter of 2019 due to the derecognition of contingent purchase price components from the Sensile Medical acquisition.
- Capital expenditure as a percentage of revenues will be approximately 12 percent 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
For more information about Gerresheimer AG and its products: www.gerresheimer.com.