Gerresheimer advances growth and technology projects in third quarter

Düsseldorf (ots) -

- Revenues up 1.4 % on the prior-year quarter to EUR 358.6m
- Adjusted EBITDA at EUR 72.2m in third quarter of 2019
- Adjusted net income at EUR 30.7m in third quarter of 2019
- New innovation center for pharmaceutical glass opened in the US
- Successful refinancing by a EUR 550.0m revolving credit facility
negotiated with improved conditions
- Guidance for financial year 2019 confirmed

Gerresheimer AG ended the third quarter of the financial year 2019
(June 1, 2019 to August 31, 2019) with a revenue growth of 1.4 %.
"Our third quarter went as expected. Business with prefillable
syringes and pharmaceutical plastic packaging in particular performed
well. We continue on our growth trajectory with a focus on
innovation, quality, digitalization and capacity expansion. In late
September, we opened an innovation center in the US. There we pool
our experts and expertise in glass and drive innovation in
pharmaceutical glass," commented Dietmar Siemssen, CEO of
Gerresheimer AG.

Gerresheimer increased revenues by 1.4 % to EUR 358.6m in the
third quarter of the financial year 2019, up from EUR 353.7m in the
prior-year quarter. The syringe business performed well in the third
quarter of 2019. Revenues with primary pharmaceutical plastic
packaging also grew. Additionally, the medical plastic systems
business did well, notably due to engineering and tooling revenues.
Revenues from glass primary packaging once again showed healthy
growth in Asia. In Europe they were stable. The positive market trend
in North America continues. Demand from a major customer there has
temporarily decreased due to his operational problems. In the
cosmetics packaging business, the Company is increasingly targeting
sustainable solutions, primarily through increased use of recycled
glass and recycled plastic resin.

Gerresheimer is pursuing a large number of projects for profitable
growth and enhanced productivity. These projects are being
systematically implemented and are well on schedule. At the end of
September, a Glass Innovation and Technology Center in Vineland (New
Jersey, USA) was opened at a major customer event. The center's
purpose is to pool expertise in glass as well as drive innovation in
pharmaceutical glass and related processes, including increased
digitalization. Located directly adjacent to a Gerresheimer
production plant for injection vials and cartridges, the newly built,
ultra-modern innovation center allows joint development on site with
global pharma customers.

In figures, capital expenditure of EUR 45.5m was incurred in the
third quarter of 2019. This was mainly directed at the continued
expansion of inhaler production capacity at the Horsovsky Tyn plant
in the Czech Republic coupled with further additions to production
capacity and to the product portfolio. Other capital expenditure in
the quarter under review related to the planned furnace overhaul in
Essen, Germany, as well as production line upgrading and automation
at various plants.

Third quarter adjusted EBITDA at constant exchange rates came to
EUR 71.1m, compared to EUR 69.8m adjusted for one-off effects a year
earlier. Adjusted net income in the third quarter of 2019 stood at
EUR 30.7m, versus EUR 28.6m excluding also one-off effects in the
prior-year quarter. Adjusted earnings per share after non-controlling
interests were EUR 0.96 in the third quarter of 2019, compared to a
prior-year figure of EUR 0.89 excluding one-off effects. There was a
temporary decrease in adjusted EBITDA leverage (net financial debt to
adjusted EBITDA over the last twelve months) to 2.4x.

Gerresheimer has negotiated its refinancing on improved
conditions. Based on the good business results, the syndicated
loan-in the form of a revolving credit facility-was increased by
another EUR 100.0m, from EUR 450.0m to EUR 550.0m. Gerresheimer
expects a long-term reduction in financing costs by some EUR 1m per
year.

Outlook

Gerresheimer's expectations for the financial year 2019 remain
unchanged. They are set out in the following, in each case based on
constant exchange rates.

- Revenues are expected to be in the range of approximately EUR 1.4bn
to EUR 1.45bn in the financial year 2019.
- For adjusted EBITDA, the Company expects a figure of approximately
EUR 295m in the financial year 2019 (plus or minus EUR 5m), versus
a comparative figure of EUR 289.1m in the financial year 2018. This
does not include EUR 118.5m in other operating income already
recognized in the first half of 2019 due to derecognition of
contingent purchase price components from the Sensile Medical
acquisition.
- Capital expenditure as a percentage of revenues will be
approximately 12 % in 2019.

The medium-term indications published on February 14, 2019 remain
unchanged.

The full quarterly report is available here:
www.gerresheimer.com/en/investor-relations/reports

Contact:
Jens Kürten
Group Senior Director Communication & Marketing
Phone +49 211 6181-250
Telefax +49 211 6181-241
E-Mail jens.kuerten@gerresheimer.com
Internet www.gerresheimer.com

Original-Content von: Gerresheimer AG, übermittelt durch news aktuell