Good start to the year for Gerresheimer

Gerresheimer AG has got off to a good start in the new financial year. In the first quarter (December 2009 to February 2010), sales increased by 1.4% on a like-for-like basis and amounted to EUR 224.8…

Gerresheimer AG has got off to a good start in the new financial year. In the first quarter (December 2009 to February 2010), sales increased by 1.4% on a like-for-like basis and amounted to EUR 224.8 million. Profit from operations even increased by 34%. “We have got off to a good start in the new financial year and set the stage for further growth in 2010,” said Dr. Axel Herberg, CEO of Gerresheimer AG. The leading supplier to the pharma and healthcare industries achieved sales of EUR 224.8 million matching the level of sales in the strong first quarter of the previous year. Adjusted for currency translation and the divested segment Technical Plastic Systems sales improved by 1.4%. The first quarter was characterized by a good business development in the pharma segment, which accounts for around three quarters of total group revenues, and slow spending in the cyclical segments. The operating result (Adjusted EBITDA) of EUR 38.3 million remained on the level of the prior year. However the operating margin (Adjusted EBITDA margin) increased to 17.0% (prior year: 16.1 %). In the period under review profit from operations increased to EUR 12.3 million (Q1 2009: EUR 9.2 million) and a positive net income of EUR 2.4 million (Q1 2009: EUR -1.1 million) was achieved. This substantial profit improvement is amongst other things due to an improved financial result. Net financial debt declined compared to previous year“s quarter by approximately EUR 60 million to EUR 402.6 million. Gerresheimer AG remains on its path for growth. While the company expects sales growth in the Pharma segment, the sustainable recovery of the more cyclical segments Cosmetics and Life Science Research is not yet visible. The forecast for the 2010 financial year remains unchanged. The company expects a sales increase of 2-4% and an improved operating margin (Adjusted EBITDA Margin) of around 19.5%. Thanks to a solid financing structure and strong operating cash flow the company is well equipped to make future investments in sustainable growth. Capital expenditure for the financial year 2010 will total around EUR 75 million to 80 million.