DUESSELDORF (dpa-AFX) - German drug delivery devices maker Gerresheimer AG (GRRMF.PK) reported that its Adjusted EBITDA at constant exchange rates decreased to 54.9 million euros in the first quarter of 2018 from 59.0 million euros in the prior-year quarter. The revenue performance in the engineering and tooling business had a slight negative impact on adjusted EBITDA here. Adjusted EBITDA was also adversely affected by higher costs of plastic granulate, which Gerresheimer can onlypass on to customers with a time lag of several months.
Adjusted EBITDA after exchange rate effects came to 52.6 million euros compared with 59.9 million euros in the first quarter of 2017. Consequently, at 18.1%, the adjusted EBITDA margin is thus likewise below the 19.8% recorded in the prior-year quarter.
Adjusted net income after non-controlling interests was 58.1 million euros and thus increased by 39.4 million euros compared to the prior-year figure of 18.7 million euros, mainly as a result of the US tax reform. Accordingly, adjusted earnings per share after non-controlling interests came to 1.85 euros in the first quarter of 2018, compared with a prior-year figure of 0.60 euros.
The Gerresheimer Group increased revenues at constant exchange rates to 299.2 million euros in the first quarter of 2018 from 298.0 million euros in the prior-year quarter. On an organic basis-meaning adjusted for exchange rate effects, acquisitions and divestments-revenues consequently went up by 0.4% on the prior-year quarter.
Due mainly to the change in the USD exchange rate, reported revenues fell to 290.4 million euros from 302.8 million euros last year.
Gerresheimer's expectations for the financial year 2018 remain as set out in the following, in each case based on constant exchange rates. For the US dollar-which is expected to have the largest currency impact on the Group currency, accounting for about a third of Group revenues budgeted for the financial year 2018 or about 40% of adjusted EBITDA- the Company has assumed an exchange rate of approximately USD 1.12 to EUR 1.00.
As before, a rise or fall in the US dollar against the euro by about one cent has an impact of around 4 million euros on revenues and 1 million euros on adjusted EBITDA. Given the production locations in the USA and financial debt in US dollars, fluctuations in the US dollar/euro exchange rate have no material effect on Group earnings performance and essentially only lead to translation effects.
In terms of revenues, Gerresheimer anticipates the lower end of the range to correspond with the figure for the financial year 2017. At the upper end, the Company expects revenues at constant exchange rates of up to around 1.4 billion euros.
For adjusted EBITDA at constant exchange rates, Gerresheimer projects a range of between 305 million euros and 315 million euros.
Capital expenditure in 2018 will amount to around 8% of revenues at constant exchange rates.
For the long term, the Company targets Gx ROCE to be around 15%.
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