-- H1 Sales (per May 31) rose 40 percent to 447 million euros
-- Adjusted EBITDA climbed 47 percent to 80.3 million euros;
improved Adjusted EBITDA margin of 18 percent
-- CEO Dr. Axel Herberg: "The positive trend continued in the second
quarter 2007."
-- Profit and sales forecasts for 2007 strengthened
-- From Q3 reduced interest payments due to less debt
DUSSELDORF, Germany, July 30 /Xinhua-PRNewswire/ -- Gerresheimer AG continued its growth trend in the first-half of 2007, which ended on May 31. Sales, which was consolidated with the sales of Wilden AG for the first time, climbed by 40 percent to 447.3 (previous half year 2006: 320.6) million euros. Gerresheimer acquired the synthetic material specialist Wilden in January 2007. The sharp 47 percent rise in Adjusted EBITDA to 80.3 (54.5) million euros took place with an improved margin of 18.0 (17.0) percent. Profit from operations (EBIT) more than trebled to 23.8 (7.4) million euros. This already includes non-cash effective amortizations of 17.5 (10.9) million euros due to successful acquisitions (adjustments of fair-value amortizations). Cash net income(1) improved to 2.2 (negative 8,6) million euros in the first half of 2007.
"The positive operating trend continued in the second quarter," said Dr. Axel Herberg, CEO of Gerresheimer AG. "Following the successful listing we are reinforcing our position as a leading world partner in the pharma and life sciences industry."
In the second quarter standalone (March-May) sales rose by more than 43 percent to 245 million euros from 170.5 million euros a year ago. Adjusted EBITDA improved by 43.4 percent to 44.6 million euros. Especially pleasing was the development in profit from operations (EBIT), which more than doubled quarter-on-quarter to 12.4 million euros from 5.5 million euros a year ago. Furthermore, cash net income in the second quarter was 1.9 million euros compared with a negative 3.0 million euros a year ago.
Since June 11 Gerresheimer is listed at Frankfurt Stock Exchange’s Prime Standard market. The initial public offering enriched Gerresheimer’s coffers by 456 million euros, mainly to be used for debt reduction and growth financing. "Because our reporting period is up to the end of May, the effect of the IPO will first be seen in the results of the third quarter; the lower interest burden will bring a distinctly positive earnings contribution," said Herberg.
Earnings development of the business divisions per May 31, 2007:
The Tubular Glass division improved its sales in the first-half of 2007 by 5.1 percent to 130.9 million euros compared with 124.5 million euros a year ago and sales at the syringes division continued to be exceptionally strong. Due to furnace overhauls in the USA the division’s Adjusted EBITDA remained unchanged from the previous half-year at 30.8 million euros. This led to a slight dip in the Adjusted EBITDA margin to 23.5 percent from 24.7 percent.
The Plastic Systems division posted sales of 135.9 million euros, boosted by the acquisition of Wilden. This result arose out of higher sales of eye drop bottle business as well as rising sales and improved productivity. Adjusted EBITDA in the first-half came to 24.4 million euros from 5.4 million euros a year ago.
The Moulded Glass division raised sales 7 percent to 154.6 million euros compared with 144.1 million euros a year ago. Above all of prime importance were good sales of pharma bottles in Europe and North America as well as sales of cosmetics containers in Europe. Adjusted EBITDA increased sharply by more than 42 percent to 30 million euros from 21.1 million euros a year ago. The Adjusted EBITDA margin rose to 19.4 percent from 14.6 percent. The strong rise at this division was achieved through higher productivity and quality improvement.
The Life Science Research division posted a slight decline of 5.6 percent in sales to 26.9 million euros from 28.5 million euros mainly due to foreign exchange effects. Adjusted EBITDA was 2.8 million euros compared to 3.1 million euros.
Gerresheimer strengthens forecasts for 2007
For the financial year 2007 Gerresheimer expects further positive business development with organic sales growth of 8 percent to 9 percent as well as an Adjusted EBITDA margin approaching 19 percent. The integration of the US pharma glass manufacturer Comar is going according to plan and should contribute to further sales growth in the Tubular Glass division. Through Gerresheimer’s new joint venture with Thermo Fisher Scientific, the Life Science Research division is well placed to profit in the future from product and market synergies. Over and above that, the new financial structure since the IPO will be positively reflected from the second half of the year.
The interim report per May 30, 2007 and an analysts presentation can be accessed and downloaded from the homepage http://www.gerresheimer.com/ir .
Group Key figures:
EUR Millionen Q2/2007 Q2/2006 in % H1/2007 H1/2006 in %
Sales 245.0 170.5 +43.7 447.3 320.6 +39.5
Adjusted EBITDA 44.6 31.1 +43.4 80.3 54.5 +47.3
in % of sales 18.2% 18.2% 18.0% 17.0%
Adjusted EBITA 28.8 19.0 +51.6 50.7 30.2 +67.9
in % of sales 11.8% 11.1% 11.3% 9.4%
Profit from operations 12.4 5.5 23.8 7.4
(EBIT)
Consolidated result (4.0) (5.8) +31.0 (8.0) (14.5) +44.8
Cash Net Income(2) 1.9 (3.0) na 2.2 (8.6) na
Segment Reporting:
EUR million Q2/2007 Q2/2006 in % H1/2007 H1/2006 in %
Tubular Glass
Sales 70.7 68.7 +2.9 130.9 124.5 +5.1
Adjusted EBITDA 15.8 18.4 -14.1 30.8 30.8 0.0
Plastic Systems
Sales 79.6 13.4 na 135.9 23.8 na
Adjusted EBITDA 14.7 3.2 na 24.4 5.4 na
Moulded Glass
Sales 80.7 73.7 +9.5 154.6 144.1 +7.3
Adjusted EBITDA 16.7 11.2 +49.1 30.0 21.1 +42.2
Life Science Research
Sales 14.9 14.9 0.0 26.9 28.5 -5.6
Adjusted EBITDA 1.5 1.5 0.0 2.8 3.1 -9.7
About Gerresheimer
Gerresheimer today employs about 10,000 people in 37 locations across Europe, America and Asia. The firm’s product range stretches from glass and plastic medicine bottles to complex drug delivery systems. Its product range includes sterile syringes, inhalers and other solutions for safer dosage and the administering of medication. The group has a leading position in a market that is characterised by high technical and regulatory barriers and where Gerresheimer’s products must satisfy the strictest quality standards of the international pharmaceutical supervisory bodies.
The group posted 2006 pro-forma sales of about 893 million euros, of which about 240 million euros came from Wilden AG, a European market and technology leader in plastic systems acquired at the beginning of 2007. The pro-forma Adjusted EBITDA for the group in 2006 was about 151 million euros.
(1) Cash Net Income is defined as the consolidated result after minority interests and before non-cash fair value amortization and related income tax effects.
(2) Cash Net Income is defined as the consolidated result after minority interests and before non-cash fair value amortization and related income tax effects.
