Gerresheimer AG, a provider of health and beauty care solutions and drug delivery systems for pharma, biotechnology and cosmetics, reaffirms its guidance for its fiscal year 2022 after delivering a strong second quarter according to plan. This completes the best performance of the first half with organic revenue growth of 15.7%. Adjusted EBITDA increased by 7.3%.
“I am particularly pleased with the strong performance we achieved in the first half of the year, which is further evidence of our successful transformation into a solutions provider and systems integrator with higher growth, sustainable and profitable,” said Dietmar Siemssen, Managing Director. director of Gerresheimer AG. “We continue to successfully meet the challenges of the inflationary environment using its advantages of long-term energy supply agreements, hedges against energy price increases and its pricing power. We are seeing strong demand from our customers across our portfolio and we are on track for another record year in 2022, while meeting our medium-term guidance.”
Gerresheimer reaffirms its guidance for its fiscal year 2022 with double-digit organic revenue growth and high single-digit organic growth in Adjusted EBITDA and Adjusted EPS. In the second quarter of its 2022 financial year, Gerresheimer achieved a turnover of 445 million euros, i.e. organic growth of 13%. Focus on investing in key growth drivers, such as high value pharmaceutical and beauty solutions, regional expansion and contract manufacturing, is delivering results with sustainable growth and profitable in all divisions. Revenue growth was also supported by the current dynamic pricing environment, with contractual pass-through and sustained price increases. Adjusted EBITDA amounted to €90 million, organic growth of 5.1%. Adjusted earnings per share (EPS) went from 1.28 euro to 1.34 euro.
Gerresheimer has implemented a wide range of measures to manage inflationary impacts and ensure continuity of supply of its system-critical solutions and services. This includes long-term supply agreements, hedging contracts against energy price increases and pass-through of price increases. Going forward, Gerresheimer will continue to improve its energy mix through the rigorous implementation of its sustainability strategy.
Gerresheimer has also revamped its financial position to support the execution of its strategy. In addition to the €150 million promissory note issued in November 2021, the company signed a three-year €150 million revolving credit facility on July 1, which meets its refinancing needs for 2022 by a amount of 306 million euros, guaranteeing better conditions with increased flexibility.
The Primary Packaging Glass Division posted impressive organic growth of 19.4%. This was driven by strong demand for tubular and molded glass, with a particular focus on high value solutions such as Gx Elite Glass. Adjusted EBITDA increased organically by 8.3% and was notably influenced by the increase in energy costs.
Plastics & Devices Division sales increased 8.0% organically, again benefiting from pass-through effects. After a comparable solid period, the syringe business was slowed down by phasing effects. Adjusted EBITDA is down 4.2% organically, impacted in particular by temporary unfavorable product mix effects, mainly due to the gradual introduction of syringes.
Gerresheimer Advanced Technologies Division (GAT) continues to lay the foundation for future growth. In the second quarter, Gerresheimer entered into strategic participations with Portal Instruments Inc to develop a needleless auto-injector and with Adamant Health Oy to revolutionize the treatment of Parkinson’s disease.
Guidance for FY2022 (for group level, FXN):
– Organic revenue growth: at least 10%
– Adjusted EBITDA organic growth: high single digit
– Adjusted EPS growth: high single digit
Medium term orientation (for group level, FXN)
– Organic revenue growth: high single digit
– Organic adjusted EBITDA margin: from 23 to 25%
– Adjusted EPS growth: at least 10% per year
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