DÜSSELDORF, Germany, April 9, 2020 /PRNewswire/ -- Gerresheimer AG's stable business model has stood its ground in the current challenging global environment. "We are a key supplier to the pharma and healthcare industry. In the current situation, our pharmaceutical primary packaging and drug delivery devices are more important than ever. We play a crucial role in supplying the population with medical drugs. This makes us part of the critical infrastructure in each country we serve. Delivering on this responsibility, we do everything in our power, together with our customers and our dedicated workforce, to safeguard our production and hence keep patients supplied worldwide. We confirm our growth forecast for 2020 and continue to work on implementing our growth strategy for the years ahead," said Dietmar Siemssen, CEO of Gerresheimer AG.
After 2019, 2020 is another year of major capital expenditure at Gerresheimer. This centers on growth projects, building up capacity, process optimization and digitalization. Inhaler production is being expanded at the plant in the Czech Republic. In North Macedonia, Gerresheimer is building a new plant to produce medical plastic systems and syringes. Capacity for primary pharmaceutical plastic packaging is being expanded in China, India and Brazil. The Company is investing in the digitalization of its production and quality processes as well as in smart, connected products.
Gerresheimer generated revenues of EUR 304m in the first quarter 2020, compared to EUR 309m in the prior-year quarter. The core business grew slightly, while there were negative effects from the changeover in the business model at acquired Sensile Medical. Business with pharma bottles, injection vials, ampoules and cartridges performed well worldwide, especially in North America. Good revenue growth was generated in the first quarter 2020 with prefillable syringes. The first quarter 2020 brought an increase in business with engineering and tooling for new medical plastic products. Revenues from prescription drug plastic packaging for American pharmacies were temporarily down in the first quarter 2020.
Adjusted EBITDA stood at EUR 51m in the first quarter of 2020, compared to EUR 54m in the prior-year quarter. Excluding negative effects from the changeover in the business model at Sensile Medical, adjusted EBITDA in our core business was consequently on a par with the prior-year period. Adjusted net income came to EUR 14m in the first quarter of 2020. First-quarter 2020 adjusted earnings per share after non-controlling interests amounted to EUR 0.43.
Net financial debt stood at EUR 1,053m at the end of February 2020. Adjusted EBITDA leverage was 3.4x. Gerresheimer successfully secured the refinancing of the EUR 190m promissory loan ahead of its November 2020 maturity date by way of an agreed bridging loan commitment with a two-year term. A new promissory loan issue to replace the loan commitment is planned as soon as a favorable time window presents itself.
Guidance for 2020
Gerresheimer's forecast for the financial year 2020 is unchanged:
-- Revenue growth in the mid single-digit percentage range
-- Adjusted EBITDA margin of around 21%
-- Capital expenditure amounting to roughly 12% of revenues
Indications for subsequent years
-- Annual organic revenue growth in the mid single-digit percentage range
-- Targeted medium-term adjusted EBITDA margin of 23%
-- Annual capital expenditure of between 8% and 10% of revenues
The quarterly statement for the first quarter 2020 is available here:
Group Senior Director Communication & Marketing