Gerresheimer, an innovative systems and solutions provider and a global partner for the pharma, biotech and cosmetic industries, continued its profitable growth trajectory in the first quarter of 2024 with organic revenue growth of 2.8% and an organic increase in adjusted EBITDA of 5.9%. This positive development was fueled primarily by the performance of the Plastics & Devices Division. Revenues came to € 466.1m (Q1 2023: € 457.8m), with adjusted EBITDA standing at €80.9m (Q1 2023: €78.0m). The adjusted EBITDA margin improved organically by 50 basis points to 17.3% year on year (Q1 2023: 16.8%).
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%, as well as adjusted EBITDA of between €430m and €450m.
“We will ramp-up new lines for long-term orders in the next months as planned”, says Dietmar Siemssen, CEO of Gerresheimer. “This will have a positive impact on our growth momentum. We are fully on track and are therefore confirming our full-year guidance.”
Plastics & Devices: Syringes, pens and inhalers in demand
The Plastics & Devices Division generated revenues of €258.4m in the first quarter of 2024 (Q1 2023: €228.7m). Organic revenue growth compared to the same quarter in the prior year was 13.7% and was driven primarily by demand for drug delivery systems such as syringes, pens and inhalers.
Adjusted EBITDA reached €59.3m (Q1 2023: €46.9m), with year-on-year organic growth standing at a robust 27.3%. The adjusted EBITDA margin rose to 22.9% (Q1 2023: 20.5%). In organic terms, the margin increased by 240 basis points. The margin expansion reflects a favorable product mix with a greater share of higher-value products.
Primary Packaging Glass: Pharma business impacted by inventory effects
In the first quarter of 2024, revenues in the Primary Packaging Glass Division reached €208.4m (Q1 2023: €227.5m), a decline of 7.2% 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 €34.8m (Q1 2023: €40.7m), equating to a year-on-year fall of 11.4% in organic terms. The adjusted EBITDA margin came to 16.7%, down from 17.9% 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%
- Adjusted EBITDA: €430m–450m
- Adjusted EPS growth: 8–12%
Guidance for FY 2025 (organic)
- Revenue growth: 10–15%
- Adjusted EBITDA margin: ≥ 22%
- Adjusted EPS growth: ≥ 10%
Mid-term guidance (organic)
- Revenue growth: ≥ 10%
- Adjusted EBITDA margin: 23–25%
- Adjusted EPS growth: ≥ 10%