Gerresheimer, an innovative systems & solutions provider and global partner for the pharma, biotech and cosmetic industries, remains on track in the 1st half of FY 2024. Revenues reached EUR 968.5m (1H 2023: EUR 957.4m), adjusted EBITDA EUR 188.2m (1H 2023: EUR 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 and devices division. The margin expansion reflects a favorable product mix change with a higher share of innovative and customized solutions. For the 2nd half year 2024, 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 EUR 430 and 450 million.
“The results of the first half year 2024 underpin the resilience of our business model,” says Dietmar Siemssen, CEO of Gerresheimer AG. “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
The plastics & devices division generated revenues of EUR 541.5m in the first half year 2024 (1H 2023: EUR 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 EUR 138.1m (1H 2023: EUR 116.3m). Organic growth was 18.3% year-on-year. The adjusted EBITDA margin rose by 200 basis points to 25.5% (1H 2023: 23.5%).
The margin expansion reflects a favorable product mix change with a higher proportion of specially tailored solutions, for example for biopharmaceuticals, including GLP-1 applications for the treatment of obesity.
Primary packaging glass: pharma business impacted by destocking effects
In the 1st half year 2024, revenues in the primary packaging glass division were EUR 426.5m (1H 2023: EUR 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 EUR 74.3m (1H 2023: EUR 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 year 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: EUR 430-450 million
- 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%
The half year financial report is available on the Gerresheimer website at: https://www.gerresheimer.com/en/company/investor-relations/reports
