Gerresheimer has made a moderate start to financial year 2017, as expected.
With revenues slightly down, the adjusted EBITDA margin was held level with the prior-year perio
“We had expected a weaker start to the year. As in many other sectors, there has been increased uncertainty notably with regard to North America, as reflected in the current reticence among a number of our pharma customers to place orders. Nonetheless, we continue to see good growth opportunities for us in the years ahead.
"While systematically working at continuous productivity and quality improvements, we are adding to our product portfolio for very demanding applications,” said Uwe Röhrhoff, CEO of Gerresheimer AG.
Gerresheimer generated revenues of EUR 302.8m in the first quarter of financial year 2017 (December 1, 2016 to February 28, 2017), marking a reduction of 5.4% on the prior-year quarter. On an organic basis—meaning at constant exchange rates and adjusted for acquisitions and divestments—revenues decreased by 6.2%. The main reason for the lower revenues relates to medical systems such as insulin pens, lancets for diabetics and asthma inhalers. Engineering and tooling revenues in this business were down on the prior year.
Temporary intra-year fluctuations are normal here and essentially track the billing of large-scale customer projects. Alongside this, there was an expected decrease in demand from a number of pharma customers where Gerresheimer is the sole supplier. Revenues with pharma bottles, injection vials, ampoules and cartridges were slightly reduced compared with the prior year. This was largely due to a drop in revenues in the North America region, where greater uncertainty with regard to the new US government triggered a relatively pronounced reticence among a number of large pharma customers to place orders. The cosmetic glass business in Europe increased revenues in the first quarter.
Adjusted EBITDA went down in the first quarter from EUR 63.5m to EUR 59.9m. At constant exchange rates, adjusted EBITDA came to EUR 59.8m. Despite the lower revenues, the adjusted EBITDA margin was held steady at 19.8%, which is a record level for a first quarter. The Gerresheimer Group reported net income from continuing operations of EUR 13.3m for the first three months, EUR 2.9m below the prior-year figure.
Adjusted net income from continuing operations was EUR 19.2m, compared with EUR 23.3m in the prior-year quarter. Adjusted earnings from continuing operations per share after non-controlling interests was EUR 0.60 in the first quarter, as against EUR 0.72 in the prior-year period.
Gerresheimer incurred EUR 15.1m in capital expenditure in the first quarter, compared with EUR 13.7m in the prior-year quarter. The Company has also continued to invest in its quality and productivity initiatives. In addition, it will be increasing capacity in a business unit in the USA and has completed a projected furnace overhaul at its Belgian glass plant.
Measured as net financial debt to adjusted EBITDA, the leverage of 2.6 showed no change relative to November 30, 2016.