Gerresheimer: strong revenues and earnings growth in 2Q

Gerresheimer AG, one of the leading global suppliers to the pharma and healthcare industry, successfully closed the second quarter of the 2011 financial year. We have achieved strong growth in revenue…

Gerresheimer AG, one of the leading global suppliers to the pharma and healthcare industry, successfully closed the second quarter of the 2011 financial year. We have achieved strong growth in revenues and net income. Our Moulded Glass and Plastic Systems Divisions have performed particularly well. We have also strengthened our operations in South America, a strategically important market for us, through our acquisition of Vedat, said Uwe Rhrhoff, CEO of Gerresheimer AG. Gerresheimer was able to achieve marked growth in revenues in the second quarter of the 2011 financial year (1 March 2011 to 31 May 2011) of 5.9% to EUR 284.5 million. At constant exchange rates, revenue growth was 7.6%. The Moulded Glass and Plastics Systems Divisions played an important role in generating this strong growth. Growth drivers of the Plastic Systems division included inhalers, insulin pens, diagnostic systems and plastic packaging products. Vedat, the company that Gerresheimer acquired in March, has an excellent position in the South American primary pharmaceutical plastic packaging market and has contributed to the positive development. Gerresheimer recently announced plans to extend its Czech Republic plant, being part of the fast-growing Plastic Systems division. Gerresheimer reports adjusted EBITDA of EUR 56.3 million (prior year: EUR 56.3 million) for the second quarter of 2011. The adjusted EBITDA margin was 19.8% (Q2 2010: 20.9%). Scheduled overhauls of furnaces and capacity restrictions on prefillable syringe system production were due in the second quarter. Net income increased year on year, despite one-off expenses in connection with refinancing, by EUR 2.1m to EUR 13.3 million. Adjusted earnings per share increased over the previous year“s quarter from EUR 0.59 to EUR 0.69. Net financial debt has declined by EUR 4.1 million to EUR 404.6 million since the prior year, despite the costs incurred in connection with the Vedat acquisition, dividend payment and refinancing. In May, Gerresheimer concluded the refinancing process, which it had started ahead of schedule, with five and seven-year maturities. As a full-service partner for glass and plastics products and systems for the global pharma and healthcare industry we have a unique positioning. There is worldwide growth in demand for intelligent drug delivery and primary packaging solutions. Our competence enables us to make a decisive contribution to health and well-being, said Rhrhoff. Gerresheimer is expecting growth in revenues at constant exchange rates of 6-7%, including the Vedat business, and an adjusted EBITDA margin of approximately 20% in the current 2011 financial year. The investment volume is expected to be around EUR 80 million. Gerresheimer is an internationally leading manufacturer of high-quality speciality products made of glass and plastic for the global pharma and healthcare industry. The Group realizes revenues of around EUR 1 billion and has around 10,000 employees at 45 locations in Europe, North and South America and Asia.