(Reuters) -Medical equipment maker Gerresheimer said it has obtained the initial findings from an investigation by an external law firm into the recognition of revenue and profit from bill-and-hold agreements in the 2024 financial year. In September, Germany’s financial regulator BaFin said it would review Gerresheimer’s financial statements as of November 30, 2024, adding the […]
Health
Gerresheimer finds 2024 revenue-recognition issues after external probe
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(Reuters) -Medical equipment maker Gerresheimer said it has obtained the initial findings from an investigation by an external law firm into the recognition of revenue and profit from bill-and-hold agreements in the 2024 financial year.
In September, Germany’s financial regulator BaFin said it would review Gerresheimer’s financial statements as of November 30, 2024, adding the company may have recognised revenue for some contracts with customers before the revenue was actually realised.
The group, whose products include injector pens for weight-loss drugs, vials and inhalers, said that after the BaFin investigation, the company commissioned an external investigation into the finances.
The company said on Saturday that based on the law firm’s findings, the requirements for revenue recognition were not met for a contract with a volume of around 3 million euros ($3.50 million).
Gerresheimer also said it would have the law firm review other bill-and-hold agreements concluded in the 2024 financial year.
($1 = 0.8575 euro)
(Reporting by Chandni Shah in Bengaluru; Editing by Matthew Lewis)