12.04.2018
Gerresheimer AG DE000A0LD6E6
DGAP-News: Gerresheimer AG: Gerresheimer raises earnings per share in first quarter due to US tax reform
DGAP-News: Gerresheimer AG / Key word(s): Quarterly / Interim Statement
Gerresheimer AG: Gerresheimer raises earnings per share in first quarter due
to US tax reform
12.04.2018 / 07:30
The issuer is solely responsible for the content of this announcement.
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Gerresheimer raises earnings per share in first quarter due to US tax reform
- Revenues at constant exchange rates EUR 299.2m in first quarter of 2018,
as expected, stable relative to prior-year period; organic revenue growth
0.4%
- Adjusted EBITDA at constant exchange rates EUR 54.9m, as budgeted below
the EUR 59.0m prior-year figure
- Development of US dollar against EUR led to 4.1% decrease in revenues to
EUR 290.4m and in adjusted EBITDA to EUR 52.6m
- Adjusted earnings per share increased to EUR 1.85, compared with EUR 0.60
in prior-year quarter, primarily due to effects of US tax reform
- Guidance for 2018 confirmed
- Call option for acquisition of remaining 25% of shares in Triveni Polymer
Private Ltd. exercised on April 9, 2018
Duesseldorf, April 12, 2018 - Gerresheimer AG completed the first quarter of
the financial year 2018 (December 1, 2017 to February 28, 2018) as budgeted
with revenues at constant exchange rates stable relative to the prior year
and adjusted EBITDA at constant exchange rates below the prior-year figure.
"The first quarter went as expected. I would particularly like to emphasize
the rise in adjusted earnings per share, which is a one-time effect in this
quarter, notably due to the US tax reform. Our shareholders will also
benefit from this in the dividend next year. And to further advance our
regional expansion, we have decided to take over in its entirety our Indian
subsidiary for pharmaceutical plastic packaging by acquiring the remaining
25%", said Rainer Beaujean, Management Board Spokesperson and Chief
Financial Officer.
The Gerresheimer Group increased revenues at constant exchange rates from
EUR 298.0m in the prior-year quarter to EUR 299.2m in the first quarter of
2018. On an organic basis-meaning adjusted for exchange rate effects,
acquisitions and divestments-revenues consequently went up by 0.4% on the
prior-year quarter. Revenues from tooling were down in the quarter as
budgeted. There was good sales performance in medical plastic systems. The
inhaler project in North America is performing especially well. It more than
made up for lower demand from other medical plastic systems with a number of
customers for whom Gerresheimer is the sole supplier. Pharmaceutical plastic
packaging revenues picked up in Brazil and India significantly. Due among
other factors to the severe influenza season, there was also fairly strong
demand for plastic vials for prescription drugs in the USA. By contrast,
revenues from primary packaging glass in North America were once again down.
The relatively pronounced reticence on the part of a number of large pharma
customers there continues and the situation is improving only gradually.
However, good revenue performance with glass primary packaging in all other
regions was able to fully compensate for this, notably as a result of good
sales of cosmetic glass in Europe and pharma glass in China. Due mainly to
the change in the USD exchange rate, reported revenues fell in the same
period from EUR 302.8m to EUR 290.4m.
Adjusted EBITDA at constant exchange rates decreased as expected from EUR
59.0m in the prior-year quarter to EUR 54.9m in the first quarter of 2018.
The revenue performance in the engineering and tooling business had a slight
negative impact on adjusted EBITDA here. Adjusted EBITDA was also adversely
affected by higher costs of plastic granulate, which Gerresheimer can only
pass on to customers with a time lag of several months. In the sales of
Primary Packaging Glass Division, lower revenues in the North America region
with the attended lower utilization of installed capacity were a key factor
behind a decrease in adjusted EBITDA. As in the prior-year quarter, there
was also a scheduled furnace overhaul. Adjusted EBITDA after exchange rate
effects came to EUR 52.6m, compared with EUR 59.9m in the first quarter of
2017. Consequently, at 18.1%, the adjusted EBITDA margin is thus likewise
below the 19.8% recorded in the prior-year quarter.
Adjusted net income after non-controlling interests was EUR 58.1m and thus
increased by EUR 39.4m compared to the prior-year figure of EUR 18.7m,
mainly as a result of the US tax reform. Accordingly, adjusted earnings per
share after non-controlling interests came to EUR 1.85 in the first quarter
of 2018, compared with a prior-year figure of EUR 0.60.
Net financial debt increased slightly by EUR 14.2m to EUR 726.9m as of
February 28, 2018. Calculated as the ratio of net financial debt to adjusted
EBITDA over the last twelve months, adjusted EBITDA leverage stood at 2.4
times, which is below the medium-term target of 2.5 times.
Capital expenditure totaled EUR 10.8m in the first quarter of 2018, as
against EUR 15.1m in the prior-year quarter. One substantial focus of
capital expenditure was on the expansion of inhaler production in the USA
and additions to the product portfolio. Other capital expenditure related to
a scheduled furnace overhaul.
On April 9, 2018, Gerresheimer exercised the call option to acquire the
remaining 25% of shares in Triveni Polymers Private Ltd., New Delhi (India).
The purchase price for this share is expected to be in the low double-digit
million euro range.
Outlook
Gerresheimer's expectations for the financial year 2018 remain as set out in
the following, in each case based on constant exchange rates. The figures
are calculated using actual average exchange rates in the financial year
2017. For the US dollar-which is expected to have the largest currency
impact on the Group currency, accounting for about a third of Group revenues
budgeted for the financial year 2018 or about 40% of adjusted EBITDA- the
Company has assumed an exchange rate of approximately USD 1.12 to EUR 1.00.
As before, a rise or fall in the US dollar against the euro by about one
cent has an impact of around EUR 4m on revenues and EUR 1m on adjusted
EBITDA. Given the production locations in the USA and financial debt in US
dollars, fluctuations in the US dollar/euro exchange rate have no material
effect on Group earnings performance and essentially only lead to
translation effects.
- In terms of revenues, Gerresheimer anticipates the lower end of the range
to correspond with the figure for the financial year 2017. At the upper end,
the Company expects revenues at constant exchange rates of up to around EUR
1.4bn.
- For adjusted EBITDA at constant exchange rates, Gerresheimer projects a
range of between EUR 305m and EUR 315m.
- Capital expenditure in 2018 will amount to around 8% of revenues at
constant exchange rates.
- For the long term, the Company targets Gx ROCE to be around 15%.
The full quarterly report is available at:
www.gerresheimer.com/en/investor-relations/reports
About Gerresheimer
Gerresheimer is a leading global partner to the pharma and healthcare
industries. The company's special glass and plastic products contribute to
health and well-being. Gerresheimer is a global organization with about
10,000 employees and manufacturing operations in the local markets, close to
customers. With plants in Europe, North and South America and Asia
Gerresheimer generates revenues of approximately EUR 1.4 billion. The
comprehensive product portfolio includes pharmaceutical packaging products
as well as convenient and safe drug delivery systems such as insulin pens,
inhalers, pre-fillable syringes, vials, ampoules, bottles and containers for
liquid and solid pharmaceuticals with closure and safety systems, plus
cosmetic packaging products.
Press contact Investor Relations contact
Jens Kürten Severine Camp
Group Senior Director Communication & Marketing Corporate Senior Director
Investor Relations
Phone +49 211 6181-250 Phone +49 211 6181-314
Telefax +49 211 6181-241 Telefax +49 211 6181-121
E-Mail [email protected] E-Mail [email protected]
Group Key Figures (IFRS; Financial Year end November 30)
Results of Operations during Reporting Period Q1 Q1 Change in
in EUR million 2018 2017 %6
Revenues at constant exchange rates1 299.2 298.0 0.4
Revenues 290.4 302.8 -4.1
Adjusted EBITDA at constant exchange rates2 54.9 59.0 -7.0
Adjusted EBITDA3 in % of revenues 52.6 59.9 -12.1 -
18.1 19.8
Adjusted net income after non-controlling 58.1 18.7 > 100.0
interests4
Adjusted earnings per share5 in EUR 1.85 0.60 > 100.0
Net Assets as of Reporting Date in EUR
million
Equity ratio in % 34.5 33.3 +120bps
Net financial debt 726.9 789.8 -8.0
Capital expenditure 10.8 15.1 -28.2
1 Revenues at constant exchange rates of the first quarter 2017 were, for a
better comparability, translated at the budget rates 2018, which are
equivalent to the average rates of the financial year 2017 and can be found
in Note (1) of the interim consolidated financial statements.
2 Adjusted EBITDA at constant exchange rates: Earnings before income taxes,
net finance expense, amortization of fair value adjustments, depreciation
and amortization, impairment losses, restructuring expenses, and one-off
income and expenses. For a better comparability, adjusted EBITDA of the
first quarter 2017 at constant exchange rates was translated at the budget
rates 2018, which are equivalent to the average rates of the financial year
2017 and can be found in Note (1) of the interim consolidated financial
statements.
3 Adjusted EBITDA: Earnings before income taxes, net finance expense,
amortization of fair value adjustments, depreciation and amortization,
impairment losses, restructuring expenses, and one-off income and expenses.
4 Adjusted net income after non-controlling interests: Consolidated net
income after non-controlling interests before non-cash amortization of fair
value adjustments, restructuring expenses, impairment losses, one-off income
and expenses (including significant non-cash expenses), and the related tax
effects.
5 Adjusted earnings after non-controlling interests divided by 31.4m shares.
6 Change calculated on a EUR k basis.
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12.04.2018 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Language: English
Company: Gerresheimer AG
Klaus-Bungert-Str. 4
40468 Düsseldorf
Germany
Phone: +49-(0)211/61 81-00
Fax: +49-(0)211/61 81-295
E-mail: [email protected]
Internet: http://www.gerresheimer.com
ISIN: DE000A0LD6E6, XS0626028566
WKN: A0LD6E, A1H3VP
Indices: MDAX (Aktie)
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange
End of News DGAP News Service
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