Gerresheimer share: Factors in the current scenario

The packaging manufacturer reports a slight increase in profits with modest sales growth and adjusts its future forecast following the Bormioli acquisition.

Gerresheimer AG achieved adjusted EBITDA of EUR 419.4 million in the past financial year 2024, an increase of 4 percent over the previous year. Sales rose slightly to EUR 2.014 billion, representing organic growth of 2.9 percent. Despite this positive development, the company remained just below its self-imposed forecast of organic sales growth of 3 to 4 percent. Adjusted earnings per share improved to EUR 4.67 from EUR 4.62 in the previous year, while regular earnings per share fell to EUR 3.18. The packaging specialist continued to be burdened by ongoing inventory reductions for standard injection vials in the fourth quarter. In addition, the flooding of the US injection vial plant in Morganton caused by Hurricane Helene had a negative impact on business development. It is noteworthy that the Primary Packaging Glass (PPG) division has regained growth momentum, while the Plastics & Devices (P&D) division performed weaker.

Outlook redefined by Bormioli takeover

Gerresheimer has adjusted its forecast for the 2025 financial year and now expects organic sales growth of 3 to 5 percent, based on pro forma sales of EUR 2.4 billion. This new forecast takes into account for the first time the acquisition of Bormioli Pharma, which was completed in December 2024 and is expected to make a "significant" contribution to sales and adjusted EBITDA in the future. However, the company expects organic sales to decline by around 1 percent in the first quarter of 2025, before growth is expected to resume in the second quarter. This reflects, among other things, an emerging slowdown in demand in the molded glass segment from the cosmetics and food/beverage industries. The postponement of a medical technology order to the fall due to regulatory approvals expected later also influences the outlook. Gerresheimer remains confident about profitability and is sticking to its target of an adjusted EBITDA margin of 22 percent for 2025. In the medium term, the MDAX Group continues to aim for a margin of between 23 and 25 percent, with average annual sales growth of 8 to 10 percent.

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