Business News
Gerresheimer: record year in 2007 and positive outlook for 2008
Tuesday 26. February 2008 - Sales in 2007 increased by 48.1% to 957.7m Operating results (Adjusted EBITDA) up by 48.1% at 181.6m Proposed dividend: 0.40 per share CEO Dr. Axel Herberg: "For the financial year 2008 we expect further sales growth, with an improved margin."
Gerresheimer AG has finished the financial year 2007 with record figures in terms of sales and results. The company increased its sales by 48.1% to 957.7m (2006: 646.7m). Excluding acquisition and exchange-rate effects, Gerresheimer reports above-average sales growth of 8.4%. Operating results (Adjusted EBITDA) rose by 48.1% from 122.6m in the prior year to 181.6m. The companys operating strength is shown by the Adjusted EBITDA margin of 19.0%.
The debt level before the IPO and the one-off costs of the IPO are reflected in consolidated results of 0.8m (2006: -25.0m). In the fourth quarter, however, consolidated results already totalled 13.9m, reaching a level which was no longer depressed by IPO costs and for the first time reflected the companys low level of debt. The adjusted consolidated results improved strongly during the financial year to 44.3m (2006: 8.7m).
“We have achieved all the targets we set ourselves for 2007 and in many cases exceeded them. For our company we look back over a very successful financial year”, says Dr. Axel Herberg, CEO of Gerresheimer AG. Against the background of this brilliant business development, the Management Board and the Supervisory Board will propose to the Shareholders Meeting that a dividend is already distributed for the financial year of the IPO, which is to amount to 0.40 per share.
Continuation of globalisation strategy
The strong growth of Gerresheimer AG is attributable on the one hand to above-average organic growth and on the other hand to acquisitions. The Wilden Group, which was acquired at the start of 2007 has already been fully integrated and made a sustained contribution to the results of the Gerresheimer Group. Beyond this, Gerresheimer also expanded its global presence through a number of acquisitions and joint ventures. The company now operates in a worldwide total of 41 locations and employs more than 10,800 people.
Positive development in all Divisions
Sales by the Tubular Glass Division in 2007 totalled 271.2m, up 11.4% on the prior year level of 243.4m. Adjusted EBITDA increased to 66.7m (2006: 61.9m). A particularly strong contribution to this growth was made by the 6% increase in sales of ready to fill (RTF) syringes. Through the commissioning of a second RTF syringe line, Gerresheimer has substantially expanded its production capacity in order to meet the continuing high level of demand. A third production line of this type is already in the planning stage and is expected to be commissioned in 2009.
In 2007 the Plastic Systems Division achieved sales of 299.7m compared with 48.2m in the prior year, and Adjusted EBITDA of 56.1m (prior year: 12.0m). This improvement was largely attributable to the acquisition of the Wilden Group, which during the eleven months of its membership of the Gerresheimer Group made a substantial contribution to the results of the Plastic Systems Division. Growth in the core business of medical plastic systems was particularly gratifying.
Increased sales of bottles for the pharmaceutical industry and of perfume flacons and cream pots for the cosmetics industry resulted in organic sales growth of 8.7% for the Moulded Glass Division. Overall the Division achieved sales of 318.8m (2006: 299.4m) and a 19.7% rise in Adjusted EBITDA to 65.1m (prior year: 54.4m). The marked margin improvement is attributable to consistent measures to enhance productivity.
The joint venture entered into with Thermo Fisher Scientific in mid-2007 meant that business in the Life Science Research Division was substantially expanded. Sales by the Division rose by 29.4% to 72.2m (prior year: 55.8m). Adjusted EBITDA improved to 7.7m (prior year: 6.4m). Integration of the Chinese joint venture and expansion of production in China are proceeding according to plan. The competitive position of the Life Science Research division has therefore been substantially strengthened.
Further growth in the financial year 2008
The new financial year for Gerresheimer AG started on 1 December 2007. CEO Dr. Axel Herberg believes that his managements strategies have once more been confirmed: “As expected, we have had a successful start to the year. In the highly specialised markets for packaging and system solutions, Gerresheimer is widely recognised as a leading global partner for the pharma & life science industry. I have no doubt that in the current year we will be able not only to consolidate our position but expand it intensively. We will continue to grow.”
On the basis of continuously increasing demand for special packaging for the pharma & life science industry, Gerresheimer expects a sales increase of between 13% and 15%. The Adjusted EBITDA margin will, according to the target for the year, improve in parallel beyond 19%. Planned investments in 2008 total 105-110m.