By Isabel Demetz, Marleen Kaesebier (Reuters) -German packaging and medical equipment maker Gerresheimer reported a drop in its organic core earnings on Friday, hit by continued weak demand for moulded glass used in cosmetics and a shift in syringe revenues into later quarters. The company, which makes the types of pens used to inject weight-loss […]
Health
Gerresheimer’s first-quarter results hit by low demand for moulded glass
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By Isabel Demetz, Marleen Kaesebier
(Reuters) -German packaging and medical equipment maker Gerresheimer reported a drop in its organic core earnings on Friday, hit by continued weak demand for moulded glass used in cosmetics and a shift in syringe revenues into later quarters.
The company, which makes the types of pens used to inject weight-loss drugs such as Novo Nordisk’s Wegovy, earlier this year flagged that some syringe sales would be pushed into the second and third quarters due to customer destocking.
It is working on opportunities to expand revenues from GLP-1 obesity drugs to exceed the 350 million euros ($399.4 million) it had previously forecast for 2027, CEO Dietmar Siemssen said during an analyst call.
Siemssen said Gerresheimer was participating in various “pretty large tenders” related to this, most of which he hoped would be decided over the next two quarters.
He also noted that production at its plant in Morganton, North Carolina, which was hit by Hurricane Helene last year, should return to full capacity in the coming weeks.
Its organic adjusted core earnings (EBITDA) fell 9.3% to 91.4 million euros in the first quarter, including recently acquired Bormioli Pharma’s results for both this year and the last. The deal, closed in December, was part of Gerresheimer’s plan to create a new moulded glass business unit.
Non-organic adjusted EBITDA, which doesn’t account for currency exchange effects and Bormioli Pharma’s year-ago results, rose 13.1% and slightly beat analysts’ consensus provided by the company.
Gerresheimer’s shares rose around 3% by 1017 GMT, after it also confirmed its guidance for 2025.
A German trader said the results should be “good enough for a relief rally after possibly failed private equity deal”, referring to U.S. fund KKR reportedly dropping out of a consortium seeking to take over the company.
In February, Gerresheimer confirmed it was in early-stage discussions with private equity investors over a potential sale.
Siemssen said during Friday’s call that potential takeover talks were still ongoing.
($1 = 0.8763 euros)
(Reporting by Isabel Demetz and Marleen Kaesebier in Gdansk, editing by Milla Nissi)