Gerresheimer continued its profitable growth trajectory in the first quarter of 2024 with organic revenue growth of 2.8 percent and an organic increase in adjusted EBITDA of 5.9 percent. This positive development was fuelled primarily by the performance of the Plastics & Devices Division. Revenues came to EUR 466.1 million (Q1 2023: EUR 457.8 million), with adjusted EBITDA standing at EUR 80.9 million (Q1 2023: EUR 78.0 milluion).
The adjusted EBITDA margin improved organically by 50 basis points to 17.3 percent year on year (Q1 2023: 16.8 percent). The margin expansion reflects a favourable product mix with a higher share of innovative and customized solutions. Global capacity expansion, including for syringes, pens and auto-injectors, is progressing according to plan. The Management Board has confirmed its guidance for the financial years 2024 and 2025, as well as the mid-term outlook. In 2024, Gerresheimer expects to generate organic revenue growth of between 5 and 10 percent, as well as adjusted EBITDA of between EUR 430 and 450 million.
“We will ramp-up new lines for long-term orders in the next months as planned,” said Dietmar Siemssen, CEO of Gerresheimer AG. “This will have a positive impact on our growth momentum. We are fully on track and are therefore confirming our full-year guidance.”
Primary Packaging Glass: Pharma business impacted by inventory effects
In the first quarter of 2024, revenues in the Primary Packaging Glass Division reached EUR 208.4 million (Q1 2023: EUR 227.5 million), a decline of 7.2 percent year on year in organic terms. The decrease in revenues here is mainly due to the drop in demand in pharma business as a result of customer inventory effects.
Adjusted EBITDA amounted to EUR 34.8 million (Q1 2023: EUR 40.7 million), equating to a year-on-year fall of 11.4 percent in organic terms. The adjusted EBITDA margin came to 16.7 percent, down from 17.9 percent in the prior year. In organic terms, the margin declined by 80 basis points compared to the prior-year quarter.
Continuation of profitable growth
With its high order backlog Gerresheimer expects to continue its profitable growth both in 2024 and in subsequent years.
Guidance for FY 2024 (organic)
Revenue growth: 5–10 percent
Adjusted EBITDA: EUR 430–450 million
Adjusted EPS growth: 8–12 percent
The full report on Gerresheimer’s First Quarter 2024 is available here.