Gerresheimer increases revenues by 8.8% and successfully integrates Sensile Medical

The Gerresheimer Group increased revenues at constant exchange rates by 8.8% in the third quarter of 2018, from EUR 335.0m in the prior-year quarter to EUR 364.4m. This includes EUR 3.5m from Sensile Medical, which was acquired in July 2018. On an organic basis—meaning adjusted for exchange rate effects and Sensile Medical—revenues went up by 7.8% relative to the prior-year quarter. In the first nine months of 2018, revenues at constant exchange rates rose by 3.9%. The third quarter brought revenue growth in plastic pharmaceutical packaging in Europe and notably also in India and South America. Demand for plastic vials for prescription drugs in the USA was stable. In the prefillable syringes business, demand generally remains very good despite a slight drop in customer call-off orders during the third quarter. Medical plastic systems continue to be a revenue growth driver, especially due to the inhaler project in the USA. However, there was a decrease in demand from a number of pharma customers for whom Gerresheimer is the sole supplier. The moulded glass business showed strong positive growth rates, most notably in sales of cosmetic glass. With products such as injection vials, ampoules and cartridges, the recovery in the US business continued and there was also growth in Europe. Revenues at constant exchange rates in the new Advanced Technologies Division, which covers Sensile Medical, came to EUR 3.5m in the third quarter. In September, a wearable micro pump from Sensile Medical received CE certification for the European market. Custom-designed for the treatment of Parkinson’s disease, the pump can now be brought to market by the pharma company concerned.

Adjusted EBITDA at constant exchange rates decreased from EUR 78.2m in the prior-year quarter to EUR 76.1m. Two negative effects have to be taken into account here: An expense of EUR 1.4m was recognized in the third quarter due to the European Commission decision on the exemption from network charges granted to large electricity-consuming enterprises in 2012 and 2013. Furthermore, adjusted EBITDA at constant exchange rates for the Advanced Technologies Division is a negative EUR 2.0m. Without these two effects, adjusted EBITDA at constant exchange rates would have totaled EUR 79.5m, EUR 1.3m higher than in the prior-year quarter. The adjusted EBITDA margin in the third quarter of 2018 was 20.9%. Excluding the expense relating to the exemption for electricity network charges and excluding the new Advanced Technologies Division, the adjusted EBITDA margin came to 22.0%, which, as expected, is below the 23.4% prior-year figure. 

Adjusted net income after non-controlling interests came to EUR 32.0m in the third quarter, compared with EUR 31.3m in the prior-year quarter. The adjusted earnings per share after non-controlling interests came to EUR 1.02 in the third quarter, compared with EUR 1.00 a year earlier.

Net financial debt increased by EUR 193.1m to EUR 905.8m as of August 31, 2018, primarily due to payment of the first installment of the purchase price for Sensile Medical. Calculated as the ratio of net financial debt to adjusted EBITDA over the last twelve months, adjusted EBITDA leverage stood at 3.2x. 

Capital expenditure totaled EUR 19.5m in the third quarter of 2018 and EUR 45.1m in the first three quarters of the year. This included the expansion of inhaler production in the USA, additions to the product portfolio and enlargement of production capacity. In the glass business, further capital expenditure related to the scheduled furnace overhaul in the USA as well as to modernization measures, tooling and molds.