Gerresheimer, an innovative systems and solutions provider and global partner for the pharmaceutical, biotechnology and cosmetic industries, remains on track in the first half (H1) of FY 2024. Revenues reached €968.5m (H1 2023: €957.4m), adjusted EBITDA €188.2m (H1 2023: €185.2m). Revenue growth was 1.7% and adjusted EBITDA growth was 2.9% in organic terms. The adjusted EBITDA margin was 19.4%. Destocking effects for customers in the Primary Packaging Glass division were offset by the good revenue performance with a significantly improved margin in the Plastics & Devices division.
The margin expansion reflects a favourable product mix change with a higher share of innovative and customised solutions. For the second half of FY24, Gerresheimer expects a significant upturn in business owing to new production lines ramping up and destocking effects fading out. The Management Board has confirmed its forecast for FYs 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.
“The results of the first half of 2024 underpin the resilience of our business model,” says Dietmar Siemssen, CEO of Gerresheimer. “With our broad portfolio, we can offset market fluctuations in certain areas. By increasing capacity for long-term customer projects and expanding our portfolio, we will continue our profitable growth in the second half of 2024 and the years ahead.”
Plastics & Devices: dynamic growth and improved margin
Gerresheimer’s Plastics & Devices division generated revenues of €541.5m in the first half of 2024 (H1 2023: €494.1m). Organic revenue growth was 9.9% year-on-year. The division benefited from strong demand for drug delivery systems such as syringes, inhalers and pens, but also from continued high demand for plastic containment solutions.
Adjusted EBITDA grew dynamically, reaching €138.1m (H1 2023: €116.3m). Organic growth was 18.3% year-on-year. The adjusted EBITDA margin rose by 200 basis points to 25.5% (H1 2023: 23.5%).
The margin expansion reflects a favourable product mix change with a higher proportion of specially tailored solutions such as biopharmaceuticals, including GLP-1 applications for the treatment of obesity.
Primary Packaging Glass: pharma business impacted by destocking effects
In the first half of 2024, revenues in Gerresheimer’s Primary Packaging Glass division were €426.5m (H1 2023: €461.7m), a decline of 6.9% year-on-year in organic terms. The decrease in revenues here is mainly due to the drop in demand in the pharma business as a result of customer destocking effects.
The adjusted EBITDA was €74.3m (H1 2023: €90.1m). In organic terms, the adjusted EBITDA equated to a year-on-year decrease of 14.8%. The adjusted EBITDA margin fell by 210 basis points year-on-year from 19.5% to 17.4% in the first half of 2024.
Significant upturn in business expected in second half of 2024
For the second half of FY 2024, Gerresheimer expects a significant upturn in business owing to new production lines ramping up and destocking effects phasing out. Gerresheimer expects to continue its profitable growth in the coming years, thanks to the high order backlog and capacity expansions for long-term customer orders.
Guidance confirmed
With its order backlog, Gerresheimer expects to continue its profitable growth, both in 2024 and subsequent years.
Guidance for FY 2024 (organic):
- Revenue growth: 5-10%
- Adjusted EBITDA: €430-450m
- 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%