Gerresheimer: EBITDA flat and sales down 1% in Q1 2010

13-Apr-2010 - Last updated on 14-Feb-2011 at 11:32 GMT

“Good business development” in the pharma and “slow spending” in the cyclical cosmetics and life sciences sectors dominated Gerreshimer’s performance in the first quarter of 2010.

The results, announced earlier today, fit with the pattern the German glass packaging maker reported in 2009 and are generally in keeping with the prediction it made for the rest of the year.

Overall for the quarter the firm, which generates three quarters of its revenue from the pharmaceutical industry, posted total sales of €235m, which down around 1 per cent on the year-earlier period.

On a segment-by-segment basis Gerresheimer’s moulded glass division, which makes primary packaging for drugs, cosmetics and specialty beverages, generated the largest revenues in the quarter at just over €72.4m.

This however was 5.5 per cent lower than in Q1 of 2009. The firm’s tubular glass business was the second largest contributor, with sales climbing 1.7 per cent to €71m on growing demand for ampoules, cartridges, vials and syringe systems.

Its plastic systems unit, which makes drug delivery and diagnostics technologies as well as packaging for the pharmaceutical sector, saw sales fall nearly 11 per cent to €64.7m.

However, the year earlier figure included an €11m contribution from the technical plastic systems unit the German firm sold to FBH in July 2009.

Revenue from Gerresheimer’s smallest business segment, life science research which makes laboratory glassware for drug development, was also down, falling 8.9 per cent to €20.4m.

Overall for the three months adjusted earnings before interest, tax, depreciation and amortization (EBITDA) was unchanged at €38.3m

Pharma sales up in 2010; Cosmo and life sciences “not yet visible”

For the rest of the year Gerresheimer reiterated its belief that sales to the pharma industry will grow and explained that it is “equipped to make investments in sustainable growth.

An example of Gerresheimer’s expansion efforts came with the establishment of a sales office in Moscow, Russia earlier this month. At the time the firm said that growth in country’s drug packaging market is strategically important.

The firm’s was less optimistic about the cosmetics and life sciences sector in 2010 explaining that “sustainable recovery of the more cyclical segment is “not yet visible.”