German pharmaceutical and cosmetic packaging manufacturer Gerresheimer AG again increased its sales and results in the 2Q 2008. Compared to the 2Q 2007, sales improved by 12.8%, or 16.5% on a like-for…
German pharmaceutical and cosmetic packaging manufacturer Gerresheimer AG again increased its sales and results in the 2Q 2008. Compared to the 2Q 2007, sales improved by 12.8%, or 16.5% on a like-for-like exchange-rate basis, to EUR 276.3 million. Operating results (adjusted EBITDA) rose by 20.2% to EUR 53.6 million (EUR 44.6 million in the 2Q 2007). In the 2Q 2008 Gerresheimer therefore achieved an adjusted EBITDA margin of 19.4% (18.2% in the 2Q 2007). The sales trend in the market segments of pharmaceutics and cosmetics as well as the latest acquisitions contributed to this development. Overall, Gerresheimer continued the improvement in its earnings position in the 2Q and the 1H of 2008 as a whole. Adjusted group results increased in the 2Q 2008 to EUR 17.6 million and in the 1H to EUR 27.5 million. This means a three-fold rise and adjusted earnings per share of EUR 0.53 in the 2Q and EUR 0.82 for the 1H 2008. “Following our record year in 2007 we have again increased our sales and profit in the 1H of 2008”, said Dr. Axel Herberg, CEO of Gerresheimer AG. “We expect further growth in all divisions during the course of the year and will consistently continue to focus on pharma & life science”. Gerresheimer“s recent discontinuation of peripheral operations such as consumer health care has confirmed its concentration on pharmaceuticals and life science. Thanks to the positive development in the 2Q 2008, a marked improvement in results has been achieved for the 1H 2008 as a whole. Sales rose by 15.2%, or 18.9% on a like-for-like exchange-rate basis, to EUR 515.4 million (EUR 447.3 million in the 1H 2007). Operating results (adjusted EBITDA) increased by 20.3% from EUR 80.3 million in the 1H 2007 to EUR 96.6 million. This positive development was supported by good performance by all the divisions. The Tubular Glass Division improved its sales in the 2Q 2008 by 10.3% to EUR 78.0 million (EUR 70.7 million in the 2Q 2007). The main contributor was increased demand in the segment of RTF syringe systems. Production capacity there is already fully utilised, so a further RTF facility is being built and is to commence production in early 2009. A further contribution to growth was made by the high level of demand for pharmaceutical vials in the USA, marked expansion in the Chinese market and the pharma glass business of Comar Inc. which was acquired in March 2007. Operating results (adjusted EBITDA) improved by 22.8% to EUR 19.4 million. Sales by the Plastic Systems Division rose to EUR 93.6 million (EUR 79.6 million in the 2Q 2007), equivalent to an increase of 17.6%. Operating results (adjusted EBITDA) rose by 21.8% from EUR 14.7 million (2Q 2007) to EUR 17.9 million. Sales by the Moulded Glass Division in the 2Q 2008 totalled EUR 85.6 million. This is equivalent to an increase of 6.1% in comparison to the prior year (EUR 80.7 million in the 2Q 2007), well ahead of the market average. The growth was attributable to higher sales of pharmaceutical vials in the USA and Europe and of cosmetics products. Thanks to targeted investments in productivity improvements and continued high capacity utilisation, Gerresheimer achieved a substantial margin improvement in the Moulded Glass Division. Compared with the prior year (EUR 16.7 million in the 2Q 2007), operating results (adjusted EBITDA) increased by 11.4% to EUR 18.6 million. Sales by the Life Science Research Division in the 2Q 2008 totalled EUR 22.6 million, an increase of 51.7% (EUR 14.9 million in the 2Q 2007). This growth was largely attributable to the life-science research business of Thermo Fisher Scientific which was contributed to the Kimble Chase joint venture in July 2007 and successfully integrated. Major contributions to the positive results were also made by the Division“s Chinese operations and cost savings through production relocations. Operating results (adjusted EBITDA) improved from EUR 1.5 million (2Q 2007) to EUR 2.7 million in the 2Q 2008. Despite continuing turbulence in the worldwide finance markets and dramatically rising energy costs, Gerresheimer expects a sustained positive trend in the markets in which it operates. Thanks to the positioning of its product portfolio, Gerresheimer will enjoy above-average participation. Assuming an exchange rate of USD 1.55:EUR 1.00, sales growth of 9% to 11% is expected for the current financial year. This is equivalent to a growth rate of 14% to 16% on a like-for-like exchange-rate basis for the businesses which have been continued. Thanks to the sales growth and productivity increases, Gerresheimer continues to expect that operating results (adjusted EBITDA) for the financial year 2008 will mean an improvement in the adjusted EBITDA margin to around 19.5%. The company says the sound balance sheet structure and equity ratio combined with the significant reduction in financial liabilities after the IPO in 2007 plus the cash flow generated will in the future enable it to achieve further organic growth and successfully continue its strategy of selective acquisitions. The funds available will be invested primarily in the field of pharmaceutics and life science.