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(New: in the third paragraph, comments should be made regarding possible gas price allocations)
DSSELDORF (dpa-AFX) – Gerresheimer continued to benefit from strong demand for special glass for drug ampoules, plastic and cosmetic packaging, and inhalers. While operating profit growth lagged behind sales growth due to higher investment and soaring energy prices, MDAX (MDAX) continued to outperform analysts’ average estimate. CEO Dietmar Siemssen confirmed the outlook for this year, according to the group’s announcement on Wednesday. There is also a sure gas supply.
Glass production in particular requires a large amount of gas to generate heat. As a rule, however, the Management Board is convinced that in the event of limitations in supplies, priority access to gas supplies will be obtained, of which the company informed on request. “In addition, we assume that the glass industry is itself one of the sectors worth protecting, especially pharmaceutical glass.”
In a telephone conversation with analysts, Siemssen also emphasized that Gerresheimer had entered into long-term gas supply contracts and hedging transactions in key areas. If there was a charge on the gas price, it should continue, which would in fact constitute a competitive advantage. In response to these morning comments, stocks that had been a bit sluggish so far have increased significantly.
In the second quarter of the fiscal year through the end of May, Gerresheimer increased sales by almost 18 percent to 444.6 million euros. The adjusted operating result (EBITDA) did not grow as fast, with an increase of ten percent to 90.1 million euros, as higher energy and sales costs can sometimes only be passed on to customers with a delay.
In addition, the group has invested a lot of money in expanding the production capacity of syringes, plastic packaging and injection vials, especially at plants in North America and Europe. And preparing to repair the glass melting tank at the German plant in Tettau also costs money. Overall, investment has therefore increased by almost a third. In summary, from March to May, shareholders reported a profit of EUR 25.2 million, almost 11%. less than a year ago. This was due to higher interest and tax costs.
In the fiscal year to end-November, top management continues to expect double-digit percent sales growth from their own resources. In particular, the target is an increase of at least ten percent compared to last year’s foreign exchange-adjusted figure of almost 1.5 billion euros. The adjusted operating result (adjusted EBITDA) is expected to increase by a high single-digit percentage, after around EUR 307 million last year. While a few weeks ago the increase in the forecast was obvious given the gas supply situation in Germany, the confirmation now seems positive, one trader said.
In the medium term, an adjusted operating profit margin (EBITDA margin) before FX effects of 23 to 25 percent should continue to be achieved with organic sales growth in the high single-digit percentage range. Gerresheimer intends to take advantage of new products such as biopharmaceutical packaging and innovative drug delivery systems such as automatic injectors and infusion pumps.
Around noon, MDax’s favorites were Gerresheimer shares, which gained around five and a half percent to € 61.20. In 2022, however, the price list still shows minus about 28 percent. The course is primarily burdened by concerns about the economy and gas supplies.
In addition, JPMorgan analysts recently highlighted relatively high levels of debt and loans maturing in the next six to 18 months. Gerresheimer has made progress here recently. According to an announcement in early July, the company signed a three-year revolving loan of EUR 150 million. These and promissory notes issued at the end of 2021 in the same amount are to be used for the early repayment of tranches of the next loan in the total amount of EUR 306 million, which will require within the year./mis/tav/zb / stk
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