Gerresheimer, a leading provider of healthcare and beauty solutions and drug delivery systems for pharma, biotech and cosmetics, reports double-digit growth in revenues and adjusted EBITDA for FY 2022. Revenue rose organically by 16.2%, driven by all divisions. Adjusted EBITDA grew organically by 10.2%.
“In 2022, Gerresheimer has proven that it is a profitable growth company, accelerating growth across all businesses. We have exceeded our targets while steering Gerresheimer successfully through a dynamic environment. Our strategic investments from recent years are paying off, resulting in significantly higher growth rates and returns. We will continue to leverage business opportunities and accelerate our profitable growth path,” said Dietmar Siemssen, CEO of Gerresheimer. “Following a strong close to 2022, we have made a good start to 2023. Our order books are at record levels, and we expect continued double-digit growth in revenue and adjusted EBITDA, while further improving margins,” he added.
Fourth quarter revenues amounted to €529m, representing organic growth of 15.9%. Both divisions, Plastics & Devices and Primary Packaging Glass, contributed to this success. With 21.2%, Q4 2022 delivered the strongest adjusted EBITDA margin of the year and adjusted EBITDA increased from €95m in Q4 2021 by €17m to €112m, representing currency adjusted organic growth of 11.9%. Free cash flow before M&A activities in the fourth quarter was particularly strong at €79m, after €63m in Q4 of 2021.
Plastics & Devices Division revenues grew organically by 13.8% in Q4, while for FY 2022, revenues grew organically by 12.3%, driven by strong demand for plastic packaging solutions, inhalers and pens. Adjusted EBITDA increased organically by 15.2% in Q4 and by 8.8% for FY 2022, amounting to €81m in Q4 and €232m for FY 2022.
The Primary Packaging Glass Division grew revenues organically by 18.1% in Q4 and delivered organic revenue growth of 20.8% for FY 2022. This excellent performance was driven by continued strong demand for glass containments, as well as High Value Solutions such as Gx® Elite Glass and Gx® RTF vials. Adjusted EBITDA improved organically by 8.9% for FY 2022, amounting to €45m in Q4 and €162m for FY 2022.
The fourth quarter revenue contribution of the Advanced Technologies Division of €4m was as expected, with a continuous focus on projects and investments in future growth. This included ongoing projects for the development of a new pump for a US biotech customer, as well as a micro pump for chronic heart failure treatment with SQ Innovation, which is well on track.
Gerresheimer’s consistent execution of its strategy and the delivery on its financial targets enable the company to accelerate sustainable, profitable growth. Attractive growth projects, including the strong order intake in both High Value Solutions and Medical Devices, are fueling Gerresheimer’s transformation into a system and solution provider, underlining its position as a strategic partner of choice for the global pharma and biotech industries. In 2022, Gerresheimer continued to execute its investment program to accelerate profitable growth with a particular focus on High Value Solutions Medical Devices, as well as further growth initiatives. It increased capacity in Ready-to-Fill” solutions in syringes and vials and ramped up facilities for a new autoinjection contract.
For FY 2022, the Group’s adjusted net income amounted to €151m, resulting in adjusted earnings per share of €4.61, representing organic growth of 6.9%. The Management Board and Supervisory Board are proposing a dividend of €1.25 per share for FY 2022, resulting in a pay-out ratio of 27.1%, again at the upper end of the dividend pay-out policy range of 20-30%.
Gerresheimer is setting new standards for organic growth. The company will continue to leverage business and growth opportunities, investing into the right niche markets, while consistently following its formula G strategy process.
Gerresheimer has made a good start to FY 2023 and expects double-digit organic growth for both revenues and adjusted EBITDA with further expansion of its adjusted EBITDA margin.
Guidance for FY 2023 (for group level, FXN):
- Organic revenue growth: at least 10%
- Organic adjusted EBITDA growth: at least 10%
- Adjusted EPS growth: low single-digit percentage
Mid-term Guidance (for group level, FXN):
- Organic revenue growth: at least 10%
- Organic adjusted EBITDA margin of 23-25%
- Adjusted EPS growth: at least 10%