Sales Increase by 18.2% to EUR239.1m in the First Quarter of 2008
Operating Result (Adjusted EBITDA) Improves by 20.4% to EUR43.0m Integration of the Acquisitions EDP and Allplas Progressing in Line With
DUSSELDORF, Germany, April 14 /PRNewswire-FirstCall/ --
- CEO Dr. Axel Herberg: "We Have Again Substantially Increased our Sales and Earnings, and Results are Fully in Line With our Forecasts."
Gerresheimer AG has started the financial year 2008 with an outstanding first quarter. Sales grew by 18.2% compared with the prior year period to EUR239.1m (2007: EUR202.3m). Excluding exchange-rate effects, sales actually rose by 21.8%. The operating result (Adjusted EBITDA) also improved again, increasing by 20.4% to EUR43.0m (prior year period: EUR35.7m). The Adjusted EBITDA margin therefore reached 18.0% in the first quarter (December 2007 - February 2008), which is seasonally the weakest quarter over the course of the year. The adjusted net income, which shows the operating strength of the company, almost quadrupled to EUR9.9m (prior year period: EUR2.6m). The net income improved by EUR6.5m to EUR2.5m (prior year period: EUR-4.0m). Overall, Gerresheimer profited primarily from the high level of demand in the pharma & life science segment, where the company achieves three quarters of its total sales.
"The first quarter was extremely successful for us. We improved our results in all divisions and are therefore well ahead of the overall market development. Gerresheimer is outstandingly well positioned and we are well on the way to achieving our ambitious targets for the current financial year," says Dr. Axel Herberg, CEO of Gerresheimer AG.
Successful development of all divisions
All the divisions contributed to the positive development of the Group. In addition to the sustained high level of demand for Gerresheimer products, this was attributable to the successful integration of the acquisitions made.
In the first quarter of 2008, sales in the Tubular Glass Division increased by 9.1%, or 14.6% on a like-for-like exchange-rate basis, to EUR65.7m (prior year period: EUR60.2m). Adjusted EBITDA totalled EUR15.7m (prior year period: EUR15.0m). The main growth generator in this division was the 68% increase in sales of RTF (Ready-to-Fill) syringes. To meet this sustained high level of demand, Gerresheimer plans to install a third RTF production line at the start of 2009. Further growth contributors were the rise in sales of pharmaceutical vials in the American market and growth in China.
Sales by the Plastic Systems Division increased by 37.1% to EUR77.2m (prior year period: EUR56.3m). Adjusted EBITDA actually rose by 45.4% to EUR14.1m (prior year period: EUR9.7m). This division profited from the rise in demand for inhalers and products for the segment of diabetes care. Also in this division, integration of the companies EDP (today Gerresheimer Zaragoza S.A.) and Allplas (today Gerresheimer Plasticos Sao Paulo Ltda.), which were acquired at the start of 2008, is progressing well.
With sales growth of 5.0 % (7.8% on a like-for-like exchange-rate basis) the Moulded Glass Division considerably exceeded the market average. Adjusted EBITDA on the basis of sales of EUR77.6m (prior year period: EUR73.9m) improved by 20.3% to EUR16.0m. Particular contributions were made by the pharmaceutical vials business in the USA and Europe and increased sales of cosmetics products.
The Life Science Research Division achieved a sales increase of 81.7 % to EUR21.8m (prior year period: EUR12.0m) following the expansion of business operations after establishment of the joint venture with Thermo Fisher. The operating result improved to EUR2.4m (prior year period: EUR1.3m).
Gerresheimer still on a successful course
"We will continue our successful development in 2008. We have substantially improved the results in all divisions and see this as full confirmation of our strategy. With its products, Gerresheimer is a reliable partner for the pharma & life science industry, which is our core business. We benefit from the growth in this sector and will further expand our good position in the market," says Dr. Axel Herberg. For the financial year 2008 as a whole, Gerresheimer's objective is to achieve a sales increase of 13% to 15% and an improvement in the adjusted EBITDA margin to more than 19%.
Gerresheimer employs more than 10,800 people in 41 locations in Europe,
America and Asia. In the financial year 2007, worldwide sales totalled
EUR957.7m. The product portfolio ranges from pharmaceutical vials made of
glass and plastic through to complex drug-delivery systems for the pharma &
life-science industry. These include sterile syringes, inhalers and other
system-based approaches for safe dosage and application of medications. The
Group enjoys a leading position in markets which are characterised by high
technical and regulatory barriers.
Annual General Meeting May 23, 2008
Interim report 2nd Quarter 2008 July 15, 2008
Interim report 3rd Quarter 2008 October 15, 2008
Annual financial statements 2008 February 17, 2009
Group Key Figures (IFRS)
(End of Q1 2008: February 29, Q1 2007: February 28; Financial
Year end November 30)
EUR million Q1 2008 Q1 2007 Change % FY 2007
Net sales 239.1 202.3 +18.2 957.7
Adjusted EBITDA(1) 43.0 35.7 +20.4 181.6
in % of net sales 18.0 17.6 19.0
Adjusted EBITA 25.5 21.9 +16.4 116.6
in % of net sales 10.7 10.8 12.2
Profit from operations 14.9 11.4 +30.7 53.3
Net income 2.5 -4.0 >100 0.8
Adjusted net income(2) 9.9 2.6 >100 44.3
Earnings per share 0.06 -0.04
Adjusted earnings per 0.29 1.34
Segment Key Figures
EUR million Q1 2008 Q1 2007 Change % FY 2007
Net sales 65.7 60.2 +9.1 271.2
Adjusted EBITDA 15.7 15.0 +4.7 66.7
Net sales 77.2 56.3 +37.1 299.7
Adjusted EBITDA 14.1 9.7 +45.4 56.1
Net sales 77.6 73.9 +5.0 318.8
Adjusted EBITDA 16.0 13.3 +20.3 65.1
Life Science Research
Net sales 21.8 12.0 +81.7 72.2
Adjusted EBITDA 2.4 1.3 +84.6 7.7
(1) Adjusted EBITDA: Earnings before income taxes, financial result, depreciation and amortization, restructuring expenses and one-off income and expenses
(2) Net income before non-cash amortization of fair value adjustments,
special effects from restructuring expenses and the balance of one-off
income and expenses (including significant non-cash expenses) and the
related tax effects
(3) Adjusted net income after minorities divided by 31.4m shares
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|SOURCE Gerresheimer AG|
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