Gerresheimer, a 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 euros (Q1 2023: EUR 457.8m), with adjusted EBITDA standing at 80.9m euros (Q1 2023: 78.0m euros).
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 favorable 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 euros.
“We will ramp-up new lines for long-term orders in the next months as planned”, says Dietmar Siemssen, CEO of Gerresheimer AG. “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 euros in the first quarter of 2024 (Q1 2023: EUR 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 euros (Q1 2023: EUR 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 euros (Q1 2023: 227.5m euros), 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 euros (Q1 2023: 40.7m euros), 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.
With its high order backlog Gerresheimer expects to continue its profitable growth both in 2024 and in subsequent years.
