Gerresheimer AG further accelerated its revenue growth in the third quarter of 2021.
“The third quarter once again shows the success of our growth strategy. The strong and further rising demand for our innovative and sustainable solutions proves our effective transformation. As an innovative solutions and platform provider, we are a strong partner to our biotech, pharma and cosmetics customers. Our broad range of high-value solutions, devices and products gives us a unique market presence. In addition, our global footprint forms solid foundations on which we can build,” said Dietmar Siemssen, CEO of Gerresheimer AG. “Overall, 2021 will clearly demonstrate the success of our growth strategy.”
Gerresheimer AG generated Group revenue of 382 million EUR in the third quarter of 2021. Compared to the prior year, revenues were organically up by 10.0% and by 9.8% in core business. The company achieved organic growth of 6.9% in its core business in the first nine months of the year. The Plastics & Devices Division recorded organic growth of 8.0% in the third quarter of 2021. Demand for pre-fillable syringes was high, while plastic packaging and engineering and tooling business also increased. Organic revenue in the Primary Packaging Glass Division rose by 12.2% year on year. The pharma business benefited first and foremost from the unabated rise in demand for biotech drug solutions. Higher demand for solutions for cosmetics and beauty customers also had a positive impact.
In core business, adjusted EBITDA amounted to 79 million EUR, with an organic adjusted EBITDA margin of 20.9%. In the first nine months of the financial year, the organic adjusted EBITDA margin in core business stood at 21.1%. Costs for raw materials such as plastic resin, electricity and gas have continued to rise sharply over the past few months. Gerresheimer is taking suitable and short term effective measures to counteract this increase in input costs.
Adjusted net income stood at EUR 32m in the third quarter. Adjusted earnings per share stood at EUR 1.01 in organic terms in the third quarter, equating to year-on-year growth of 5.2%. Organic growth in adjusted earnings per share over the first nine months of the financial year came to 16.3%.
Gerresheimer reaffirms its guidance for the current financial year and its medium-term outlook. The current developments mean that the company expects to achieve the upper end of its guidance for the financial year 2021 with regards to organic sales growth, while the Adjusted EBITDA margin will be at the lower end. Regardless of rising raw material and energy costs, the company is on track to achieve its absolute Adjusted EBITDA targets.
Forecast
Outlook for the financial year 2021 (core business, currency adjusted):
- Revenue growth in the mid-single-digit percentage range
- Adjusted EBITDA margin between 22% and 23%
- Adjusted earnings per share to improve by around 10%
Medium term (core business, currency adjusted):
- Revenue growth in the high single-digit percentage range
- Adjusted EBITDA margin of around 23%
- Adjusted earnings per share to improve by at least 10% per year
The Quarterly Statement for the third quarter of 2021 is available here.