Gerresheimer Reports Q1 Loss, but Revenue and EBITDA Rise

Gerresheimer AG announced a net loss for Q1, with adjusted EBITDA and revenues increasing. Despite the loss, the company maintains a positive outlook for 2025, a potential point of interest for investors.

Date: 11-04-2025

AI Rating: 6

Financial Performance Overview
Gerresheimer AG has reported a net loss of €18.01 million for the first quarter, a significant shift from the profit of €13.01 million recorded in the same period last year. This translates into a loss per share of €0.52, compared to a profit of €0.38 in the previous year. Such a decline in profitability could negatively impact investor sentiment in the short term.

However, despite this net loss, the company has highlighted an impressive increase in adjusted EBITDA and revenues. The adjusted EBITDA rose by 13.1% to €91.5 million from €80.9 million the prior year, while revenues increased by 11.6% to €520.05 million driven by the consolidation of Bormioli Pharma, acquired in 2024. Such growth in EBITDA and revenues despite the net loss suggests operational strength and may positively influence investors looking for evolving market leaders.

Organic Performance and Future Projections
On an organic basis, adjusted EBITDA experienced a decline of 9.3%, and revenues fell by 6.5% in Q1. This organic decline indicates potential challenges in market demand, particularly in the syringe business and the cosmetics sector for moulded glass, which may raise concerns among investors about long-term growth prospects.

Looking ahead, Gerresheimer maintains its fiscal 2025 outlook, anticipating organic revenue growth of 3% to 5% and an adjusted EBITDA margin of around 22%. The management's reassurance of growth in high-value solutions for biologics could indicate future strength in emerging markets.

In the mid-term, projected organic revenue growth of 8% to 10% CAGR and improved EBITDA margins suggest a positive turnaround, especially with plans for scaling production lines and revenue contributions from syringes expected in the upcoming quarters.

Overall, while the initial reported loss and organic decline may cause some concern, the company’s adjusted figures, growth plans, and favorable market outlook could present investment opportunities as Gerresheimer aims for recovery.

Stocks: GRRMF