Gerresheimer said on Tuesday that it has pushed back the release of its 2025 results amid an internal and external review of its accounting and revenue recognition procedures, and that it has initiated a sale process for its U.S.-based packaging systems business, Centor.
The company's move follows a September announcement from Germany's financial regulator, BaFin, which said it would review Gerresheimer's financial statements as of November 30, 2024, citing concerns that the company may have recognised revenue too early on certain customer contracts.
In addition to the regulatory review, Gerresheimer said it has hired a second auditing firm to carry out an examination of revenue recognition and accounting practices covering 2024 and 2025. The company indicated the audit findings will have consequences for its 2025 outlook.
Gerresheimer stated that, based on findings to date, its newly initiated investigations point to instances in which individual employees violated internal guidelines and International Financial Reporting Standards requirements. The company said the ongoing work by auditors and internal investigations will determine the full impact.
As a result of these developments, the company now expects the reduction in 2025 revenues to sit at the higher end of its prior guidance range of minus 4% to minus 2%, or slightly better. It also trimmed its forecast for adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin to a range of 16.5% to 17.5%, down from an earlier range of 18.5% to 19.0%.
Gerresheimer warned that adjusted earnings per share for 2025 are now expected to decline in the high-double-digit percentage range and could turn negative, contingent on the outcomes of the investigations and audits.
The company did not provide additional detail on the timing of the Centor sale or on the precise timetable for the completion of the second auditor's review, noting only that the results of these processes will feed into its updated outlook for 2025.
Clear summary
Gerresheimer has delayed its 2025 results amid a BaFin review and internal investigations into revenue recognition. The firm engaged a second auditor to examine 2024 and 2025 accounting, initiated a sale of its Centor packaging business, and revised down its 2025 revenue and EBITDA margin guidance while warning of a steep drop in adjusted EPS.