Gerresheimer, the German manufacturer of pharmaceutical and specialty glass and plastic packaging, has postponed releasing its fiscal year 2025 financial statements. The company had been scheduled to publish results on February 26 but said it will delay that release while additional auditing work is carried out.
Management said the decision follows internal indications uncovered during routine reviews and after consultations with its external auditor. As part of the response, Gerresheimer has engaged a second auditing firm to help ensure that prior-year figures are corrected where necessary in light of findings from an external law firm and ongoing proceedings with the German financial regulator BaFin.
Investigations to date have, according to the company, revealed instances in which certain employees violated internal guidelines and International Financial Reporting Standards. Gerresheimer said it is taking steps to adjust previously reported results to reflect those findings.
FY24 adjustments
Revenue for fiscal year 2024 will be reduced by approximately 35 million, an amount the company says represents about 2% of FY24 revenue.
The impact on adjusted EBITDA is approximately 24 million, or about 6% of 2024 adjusted EBITDA. Included within that figure are inventory valuation adjustments of roughly 4 million.
Updated FY25 outlook
Gerresheimer has revised its guidance for fiscal year 2025. The company now expects organic revenue growth to be around the upper end of a range between -4% and -2%, or slightly better. The adjusted EBITDA margin is projected at 16.5% to 17.5%, a reduction from the prior forecast range of 18.5% to 19.0%. Adjusted earnings per share growth is expected to decline by a high double-digit percentage and may turn negative.
The firm also disclosed anticipated non-cash impairments in fiscal year 2025 totaling between 220 million and 240 million. Those impairments relate to technology and development projects at Sensile Medical AG and to assets at Gerresheimer Moulded Glass Chicago.
Portfolio and operational moves
As part of portfolio optimization measures, Gerresheimer has initiated the sale of Centor Inc., a U.S.-based company that provides packaging systems for drug dispensing in the United States. The company expects the Centor sale to complete in fiscal year 2026 as part of efforts to optimize capital allocation and financing structure.
Separately, Gerresheimer plans to close its Chicago Heights plant by the end of fiscal year 2026, transferring business to three other Type 1 Moulded Glass plants located in Italy and India. The company said the planned separation and sale of the broader Moulded Glass business will not commence in fiscal year 2026.
Pre-M&A view for FY26
Looking ahead to fiscal year 2026 on a pre-merger-and-acquisition basis, Gerresheimer provided preliminary targets: revenue of approximately 2.3 billion to 2.4 billion, an adjusted EBITDA margin of 18% to 19%, and moderately positive free cash flow despite an expected weaker first half of the year.
Management emphasized that the delay in publishing FY25 results is intended to allow a full and accurate correction of prior-year figures in response to the external law firm findings and the pending BaFin proceedings.