Gerresheimer presents strong fourth quarter 2020

Transformation in full swing: continuous focus on growth delivers first positive results

Gerresheimer AG posted strong growth in the fourth quarter of 2020 and landed inside the target range despite the negative impact of the COVID-19 pandemic.

“Business in the fourth quarter was very strong. It was the best quarter in the Company’s history. Despite the negative impact of the coronavirus pandemic, especially in our cosmetics business, we reached our goals for 2020. The successful acceleration of growth in large parts of our core business demonstrates the effectiveness of our measures and makes us very confident about our business performance in the next few years. We continued to focus on implementing our strategic process in 2020. We are transforming our Gerresheimer into a growth company as innovation leader and solutions provider,” said Dietmar Siemssen, CEO of Gerresheimer AG.

“We are mobilizing the entire Company. We have set ourselves ambitious goals with our strategy. We aim to accelerate our revenue growth in 2021 and achieve high single-digit growth rates in the medium term. We let our shareholders share in our success. The Management Board and Supervisory Board are proposing a dividend of 1.25 EUR per share for the financial year 2020, the tenth increase in a row.”

Gerresheimer AG generated revenues of 403 million EUR in the fourth quarter, representing organic growth of 7.3 percent in the core business comprising the Plastics & Devices and Primary Packaging Glass Divisions. The Gerresheimer Group generated revenues of approximately 1,419 million EUR in the financial year 2020. Organic growth in the core business totalled 3.8 percent.

The Plastics and Devices Division recorded organic growth of 6.0 percent in the fourth quarter. This was attributable in particular to the syringe business as well as the Medical Plastic Systems business, each of which recorded double-digit growth rates. Alongside the strong syringe business, sales of inhalers, insulin pens, and plastic packaging contributed to the positive development in the financial year 2020 with an organic growth of 4.7 percent.

The Primary Packaging Glass Division recorded an organic growth rate of 9.1 percent in the fourth quarter 2020. This good result was underlined by first significant revenues from sales of innovative products like Gx ELITE Glass and ready-to-fill vials. Demand for high-quality perfume flacons was down substantially year on year in the financial year 2020 because of COVID-19. Nevertheless the Primary Packaging Glass Division showed an organic growth of 2.7 percent. Excluding the cosmetic business the organic growth in this division was 6.7 percent in 2020.

In the fourth quarter 2020, Gerresheimer recorded first significant revenues from vials for Covid-19 vaccinations. Gerresheimer has significantly expanded its production capacity for injection vials. This has seen the Company embrace its responsibilities and make a key contribution to combating the pandemic by supplying glass vials to be filled with vaccines.
Adjusted EBITDA in the fourth quarter of 2020 came to 100 million EUR. In the core business, adjusted EBITDA rose organically by 6.5 percent compared to the prior-year quarter. The Group’s adjusted EBITDA margin in the fourth quarter of 2020 stood at 24.8 percent. At 42 million EUR, adjusted net income was up significantly on the prior-year quarter.
The Gerresheimer Group generated adjusted EBITDA of 310 million EUR in the financial year 2020, with adjusted EBITDA growing organically by 7.9 percent in the core business. The Group’s adjusted EBITDA margin was 21.9 percent and adjusted net income came to 124 million EUR. This produced adjusted earnings per share of 3.90 EUR, of which the Company plans to distribute as dividend 1.25 EUR per share. Adjusted EBITDA leverage on November 30, 2020, was 3.0x.

Forecast

  • Outlook for the financial year 2021 (core business, at constant exchange rates):
    – Revenue growth in the mid-single-digit percentage range
    – Adjusted EBITDA margin between 22 and 23 percent
    – Adjusted earnings per share to improve by around 10 percent
  • Medium term (core business, at constant exchange rates):
    – Revenue growth in the high single-digit percentage range
    – Adjusted EBITDA margin of around 23 percent
    – Adjusted earnings per share to improve by at least 10 percent per year

The Annual Report 2020 is available here.