Gerresheimer, innovative provider of systems and solutions and global partner for the pharma, biotech, and cosmetics industries, made progress toward another strong financial year and a sustained improvement in profitability in the first nine months of 2023. Revenue grew organically (excluding exchange rate effects) by 12.6% year on year in the first nine months.
Adjusted EBITDA increased even more strongly in organic terms, gaining 20.6%. Revenues reached €1.45bn (9M 2022: €1.29bn), with adjusted EBITDA coming to €285.2m (9M 2022: €242.1m). Gerresheimer’s high level of solution expertise and broad product portfolio allows it to benefit from global megatrends in the pharma and biotech markets. In the third quarter, the company attracted among others further long-term orders for syringes, pens, and auto-injectors for the new medications for treating obesity based on glucagon-like peptide 1, or GLP-1.
“We have successfully signed additional contracts with attractive terms for GLP-1 platforms,” says Dietmar Siemssen, CEO of Gerresheimer. “We will finance corresponding capacity expansions with the funds from the capital increase. The new orders give us tailwind for our profitable growth in subsequent years and underpin our solution expertise in biopharmaceuticals with complex requirements. Overall, we are seeing the highest order intake in the history of our company at the moment.”
Against the backdrop of long-term customer contracts that have already been concluded, Gerresheimer is currently expanding production capacities in Europe, the US, and Mexico for drug delivery systems such as syringes, auto-injectors and pens, as well as containment solutions such as injection vials and primary packaging made of plastic.
Plastics & Devices: containment solutions and pens drive growth
The Plastics & Devices Division generated revenues of €754.8m in the first nine months of the financial year 2023 (9M 2022: €657.9m). Organic revenue growth (without exchange rate effects) stood at 14.7%. The high demand for containment solutions and drug delivery systems such as inhalers and pens contributed to the positive development.
Adjusted EBITDA saw a strong organic increase of 19.9% year on year in the first nine months of the financial year. Thanks to the improved product mix, the adjusted EBITDA margin improved by 0.8 percentage points to 23.8%.
Primary Packaging Glass: strong demand for high-value cosmetics
In the first nine months of the financial year 2023, revenues in the Primary Packaging Glass Division reached €689.7m (9M 2022: €628.4m). Organic revenue growth stood at 10.5%. The strong demand for high-value cosmetics solutions made up for the temporary decline in demand for injection vials following the Covid-19 pandemic.
In the Primary Packaging Glass Division, the improved product mix had a significantly positive impact on adjusted EBITDA and the margin, with adjusted EBITDA growing organically by 23.2% and the adjusted EBITDA margin improving by 1.6 percentage points to 20.2%.
Outlook confirmed
Gerresheimer expects the positive business performance to continue in the final quarter of the financial year 2023 and confirms its guidance for the full year.
Guidance for FY 2023 (for group level, currency-adjusted):
- Organic revenue growth: at least 10%
- Organic adjusted EBITDA growth: at least 10%
- Adjusted EPS growth: low single-digit percentage
Medium-term guidance (for group level, currency-adjusted):
- Organic revenue growth: at least 10%
- Organic adjusted EBITDA margin: 23 – 25%
- Adjusted EPS growth: at least 10% a year
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