Gerresheimer AG delivered profitable growth in its core business in the third quarter of 2020 and confirmed its guidance for 2020 despite temporarily lower demand for high-quality perfume flacons due to Covid-19.
“We are working together with vaccine manufacturers to prepare for the global Covid-19 vaccination campaigns. For this purpose, we are building additional capacity for the production of injection vials. Beyond this, there are numerous growth opportunities for us. And we are consequently implementing our strategy for profitable and sustainable growth. We are investing in our Company’s future, growing profitably and expect a strong fourth quarter,” said Dietmar Siemssen, CEO of Gerresheimer AG.
On the basis of 2.1% organic growth in its core business, Gerresheimer generated revenues of €349m in the third quarter of the financial year 2020 (June 1 to August 31, 2020). Gerresheimer achieved profitable growth with its glass and plastic primary packaging for liquid and solid drugs, syringes and drug delivery devices such as insulin pens and asthma inhalers. The injection vials produced by Gerresheimer will be an important part of the forthcoming Covid-19 vaccination campaigns, for which Gerresheimer is preparing together with vaccine manufacturers.
Gerresheimer continues to invest in additional capacity in this side of the business. Demand for high-quality perfume flacons was down in the last few quarters relative to the prior year due to Covid19. In the latest quarter, Gerresheimer has been able to offset the lower revenues from cosmetics packaging with higher revenues from drug packaging and drug delivery devices.
The third quarter of 2020 saw an increase in the adjusted EBITDA by 4.1% to €75m. The adjusted EBITDA margin stood at 21.5%. Adjusted net income came to €31m in the third quarter of 2020. Third-quarter 2020 adjusted earnings per share after noncontrolling interests amounted to €0.97. Free cash flow in the third quarter was strong amounting to €38m. Adjusted EBITDA leverage was unchanged at 3.2x as of the end of the third quarter of 2020. At the beginning of October, Gerresheimer signed an agreement for a €325m promissory loan on attractive terms. The funds are mainly being used to refinance the five-year promissory loan from 2015. Completion is scheduled for November 10, 2020.