Gerresheimer, an innovative system and solution provider and a global partner for the pharma, biotech and cosmetic industries, decisively continued on its profitable growth course in the financial year 2023 with an organic revenue growth of 10.4% and a strong adjusted EBITDA growth of 17.5%. Revenues reached 1.99bn (2022: EUR 1.82bn), the adjusted EBITDA EUR 404.5m (2022: EUR 354.2m). The adjusted EBITDA margin improved organically by 120 basis points to 20.8% (2022: 19.6%) and reflects a higher share of innovative and customized solutions in the company’s product mix, including for sensitive biopharmaceuticals.
Gerresheimer’s high level of solution expertise and broad product portfolio allows it to benefit from global megatrends in the pharma and biotech markets. In 2023, for example, the company secured further orders for syringes, pens and auto-injectors for GLP-1 drugs. The positive development of the operating business, the high order backlog and the current expansion of international production capacities mean that Gerresheimer is ideally positioned to continue its profitable growth in the years ahead.
“Our strong results in 2023 underpin Gerresheimer’s successful transformation as part of our formula g strategy process,” says Dietmar Siemssen, CEO of Gerresheimer AG. “The market has recognized that Gerresheimer is positioned very differently today. Innovative systems and solutions have enabled us to gain new orders from existing customers and expand our customer base overall.”
Plastics & Devices: High demand for pens and favorable product mix
The Plastics & Devices Division generated revenues of EUR 1,065.1m in the financial year 2023 (2022: EUR 945.4m). At 13.2%, organic revenue growth was driven primarily by demand for containment solutions and drug delivery systems.
Adjusted EBITDA reached EUR 270.0m (2022: Euro 232.1m). Organic growth compared to the previous year was a strong 17.9%. The adjusted EBITDA margin rose to 25.3% (2022: 24.5%). Organically the adjusted EBITDA margin expanded by 110 basis points. This reflects a favorable product mix, which includes a greater share of higher-value products.
Primary Packaging Glass: Stable pharma business, growth in cosmetics
In the financial year 2023, revenues in the Primary Packaging Glass Division reached EUR 927.3m (2022: EUR 870.6m). Organic revenue growth stood at 7.8%. While the pharma business in this division remained largely stable at a high level, the cosmetics business in particular saw an upward trend.
Adjusted EBITDA rose to EUR 182.5m (2022: EUR 161.7m). Organically the adjusted EBITDA recorded a significant increase of 17.7%. The Primary Packaging Glass Division also notably increased its margin to 19.7% in the financial year 2023 (2022: 18.6%) thanks to a favorable product mix featuring a greater proportion of higher-value products. Organically, the adjusted EBITDA margin showed a strong increase of 170 basis points.
Dividend proposal of EUR 1.25
Gerresheimer's adjusted net income rose to EUR 158m in the financial year 2023 (2022: EUR 151m). Adjusted earnings per share grew organically by 7.1% and reached EUR 4.62. The Management Board and Supervisory Board will therefore propose a dividend of EUR 1.25 per share for the 2023 financial year at the Annual General Meeting. This corresponds to a payout ratio of 28.0%. The proposed dividend is therefore once again at the upper end of the payout range of 20% to 30%.
Dynamic growth also expected in the years ahead
In view of the positive development of the operating business, the high order backlog and the current expansion of production capacities, Gerresheimer continues to expect profitable growth in the years ahead.
Guidance for FY 2024 (organic) - Revenue growth: 5-10%
- Adjusted EBITDA: EUR 430-450m
- Adjusted EPS growth: 8-12%
Guidance for FY 2025 (organic)
- Revenue growth: 10-15%
- Adjusted EBITDA margin: ≥ 22%
- Adjusted EPS growth: ≥ 10%
Medium-term guidance (organic) - Revenue growth: ≥ 10%
- Adjusted EBITDA margin: 23-25%
- Adjusted EPS growth: ≥ 10%
The 2023 annual report is available on the Gerresheimer website here:
https://www.gerresheimer.com/en/company/investor-relations/reports