Third-quarter revenues up 1.8% (+4.5% excluding exchange rate effects), to EUR 316.9m; adjusted EBITDA reaches EUR 61.6m (prior-year quarter: EUR 61.6m); net income climbs 31.8% to EUR 19.5m (prior-year quarter: EUR 14.8m); earnings per share rise by 32.1% to EUR 0.57 (prior-year quarter: EUR 0.43); guidance for financial year 2013 confirmed.
Gerresheimer AG, one of the leading partners to the pharma and healthcare industry worldwide, increased both revenues and net income in the third quarter. “Our business performance continues to be strong and very stable. As before, we expect revenue growth of 5% to 6% on a like-for-like exchange rate basis for financial year 2013. That is the outcome of our rigorous strategic focus on pharmaceutical markets in Europe, North America and the fast growing emerging markets,” said Uwe Röhrhoff, CEO of Gerresheimer AG.
Gerresheimer increased revenues in the third quarter of financial year 2013 (with a financial year from 1 December to 30 November) by 1.8% to EUR 316.9m. Excluding exchange rate effects, revenues grew by a substantial 4.5% compared with the prior-year quarter. The pharmaceutical glass and pharmaceutical plastic systems businesses contributed notably to this growth. The company generated adjusted EBITDA of EUR 61.6m in the third quarter of 2013, exactly the same figure as a year earlier. The adjusted EBITDA margin was 19.4%, slightly below the 19.8% margin in the prior-year period. This reflected the slightly increased but still low margin in the Tubular Glass Division.
Net income for the third quarter came to EUR 19.5m, 31.8% more than the prior-year quarter (EUR 14.8m). Earnings per share were EUR 0.14 up on the prior-year quarter, at EUR 0.57. Gerresheimer’s capital expenditure in the third quarter of 2013 was EUR 20.7m (prior-year quarter: EUR 23.3m).
In future, Gerresheimer AG plans to gear its structure more closely than ever to market needs. From the beginning of the new financial year on 1 December 2013, the company will be managed through three divisions: Plastics and Devices, Primary Packaging Glass and Life Science Research. “In realigning our divisions, we are adopting a leaner management structure and focusing our organization more tightly around customer needs,” Uwe Röhrhoff said.
The divisions will continue to operate under their existing structure until 30 November 2013. Stefan Grote, Member of the Management Board with responsibility for Tubular Glass and Life Science Research Divisions, left the company by mutual agreement as of 30 September 2013.
From today’s perspective, the company projects that the combination, primarily of operating and administrative management functions, is likely to involve costs in the mid-single-digit millions of euros. The resulting annual savings are estimated at about 50% of this cost figure. In addition, the company plans to assess their portfolio to figure out whether a few individual assets are to be written off in full. That may lead to a non-cash impairment in the order of around EUR 5m, excluding exchange rate effects.
For financial year 2013, Gerresheimer continues to expect revenue growth of 5% to 6% at constant exchange rates. As before, the company anticipates adjusted EBITDA in a range of between EUR 245m and EUR 250m at constant exchange rates. Largely due to the healthy growth prospects in pharmaceutical systems, capital expenditure in financial year 2013 will represent some 9% to 10% of the revenues at constant exchange rates.