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• Q4 Organic Revenue Growth: 5.4%

• Q4 Adjusted EBITDA Growth: 6.4%

• Q4 Adjusted Earnings Per Share Growth: 6.7%

• Full Year Organic Revenue Growth: 2.9%

• Full Year Adjusted EBITDA Growth: 4.1%

• Full Year Adjusted Earnings Per Share Growth: 1.1%

• Revenue from Systems and Solutions for Biologics: Increased from 11% in 2023 to 15% in 2024

• CapEx 2024: EUR345 million

• Q4 Revenue: Increased from EUR545 million to EUR569 million

• Q4 Adjusted EBITDA Margin: 22.1%

• Q4 Adjusted EPS: Increased from EUR1.51 to EUR1.63

• Plastic and Devices Division Q4 Revenue Growth: 4.9%

• Primary Packaging Glass Q4 Revenue Growth: 6.1%

• Net Financial Debt: EUR1 billion

• Liquidity: EUR861 million

• Pro Forma Net Debt: Almost EUR1.8 billion

• Pro Forma Leverage Ratio: 3.7 times

• Warning! GuruFocus has detected 3 Warning Signs with GRRMY.

Release Date: February 26, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Gerresheimer AG (GRRMY) achieved an organic revenue growth of 5.4% in Q4 2024, driven by increased demand for vials and systems for biologics.

• The company successfully completed the acquisition of Bormioli Pharma, which is expected to grow revenues by approximately 15% to 20% and be margin accretive in 2025.

• Gerresheimer AG (GRRMY) increased the revenue share of systems and solutions for biologics from 11% in 2023 to 15% in 2024, indicating a successful strategic transformation.

• The FDA granted tentative approval for the SQ Innovation Lasix ONYU, showcasing Gerresheimer AG (GRRMY)'s expertise in innovative drug delivery solutions.

• The company reported a strong cash flow performance in Q4 2024, with free cash flow before M&A almost on par with the previous year.

Negative Points

• Full-year organic revenue growth was only 2.9%, with adjusted EBITDA growth at 4.1%, reflecting a slower-than-expected recovery from market destocking.

• Gerresheimer AG (GRRMY) issued a profit warning in September 2024, the first since 2009, due to unusual market developments.

• The FDA's tentative approval for the SQ Innovation Lasix ONYU means the product cannot be marketed until October 2025, delaying revenue contributions.

• The company's molded glass cosmetics segment underperformed due to a softening in consumer spending on cosmetic products.

• Gerresheimer AG (GRRMY) faces a high leverage ratio of 3.7 times following the Bormioli acquisition, with plans to reduce it to mid-3s by year-end.

Q & A Highlights

Q: Can you explain the change in top-line guidance for 2025, considering the lower momentum compared to the previous 7% to 10% growth guidance? A: The change is due to several factors, including a softening market for molded glass in cosmetics and food and beverage, a delay in the SQ Innovation pump, and generally lower growth from Bormioli compared to previous Gerresheimer guidance. The syringe delay is a phasing effect, shifting sales from Q1 to Q2 and Q3 due to sterilization capacity issues, not production problems. (Dietmar Siemssen, CEO)