Gerresheimer expects recovery in H2 following drop in earnings, revenues

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Photo by Gerresheimer AG Revenues drop as a result of lower demand for medical plastic systems

German supplier of primary packaging, Gerresheimer AG has seen income and revenue drop in second quarter of financial year 2017, due to lower demand for medical plastics systems. 

In the three months to 31 May, the Dusseldorf-based company saw revenues drop 2.2% to €339.5m, while adjusted earnings (EBITDA) fell 9% to €75m compared to the same period last year. 

According to Gerresheimer’s financial report published 13 July, there was lower demand for medical plastic systems from a number of pharma customers where the company is the sole supplier. 

Additionally, the medical supplier saw postponements of customer orders in the inhalation business from the first to the second half-year. 

“Revenues decreased slightly in the second quarter as anticipated. We expect that our business will visibly pick up again, especially in the fourth quarter,” said Uwe Röhrhoff, CEO of Gerresheimer AG. 

Engineering and tooling for medical plastic systems also generated lower revenues in the second quarter than in the prior-year quarter. 

The German supplier played down the decline in figures, saying “temporary intra-year fluctuations are normal and essentially track the billing of large-scale customer projects.” 

Sales of plastic packaging for solid and liquid drugs, on the other hand, grew positively.  

Second-quarter revenues with primary packaging glass were on a par with prior-year figures. 

Gerresheimer incurred €35.4m in capital expenditure in the first half of 2017, compared with €35.0m in the first half of the prior year. 

Capital expenditure focused on additional production capacity for plastic packaging in the US, a furnace repair at the Belgian cosmetic glass plant, and new vial and cartridge machinery as part of global standardisation.

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