Gerresheimer’s glass packaging impacted by destocking effects

Destocking effects impacted Gerresheimer’s glass division in the past quarter.

The German-headquartered glass packaging and pharmaceutical glass manufacturer said the slower then expected market recovery in 2024 had impacted its financial results.

On the other hand its, plastics and devices reported profitable growth, which benefited from a higher share of innovative and customised solutions.

In its quarter 3 2024 financial statement it said: “The significantly slower than expected market recovery of 2024 and lower anticipated market growth in 2025 in the vial market require an adjustment of the growth guidance for the 2024 and 2025 financial years.”

CEO Dietmar Siemssen added: “Revenue growth in 2024 will be lower than just recently anticipated due to a lower demand in our tubular glass business. We had expected a much stronger pick-up in growth.”

Even though the first signs of a market recovery became visible in the quarter, business development in the glass packaging unit in the first nine months of the year was impacted by destocking effects at pharmaceutical customers, especially in the area of standard injection vials.

At €648.0 million ($714.1 million), revenue was organically below compared to the same period of the previous year at €689.7 million ($757.7 million).

Gerresheimer expects demand for injection vials to return to normal in the course of 2025.

It anticipates a stronger final quarter in the 2024 financial year as new production lines ramp up as planned and the effects of destocking continue to fade out.