The German manufacturer of plastic and glass products for medical applications, Gerresheimer (Düsseldorf; www.gerresheimer.com), is evidently benefiting from the coronavirus pandemic. “We are a key supplier to the pharma and healthcare industry,” says CEO Dietmar Siemssen. “In the current situation, our pharmaceutical primary packaging and drug delivery devices are more important than ever. We play a crucial role in supplying the population with medical drugs. This makes us part of the critical infrastructure in each country we serve.”

At EUR 304m, group sales in the first quarter of 2020 were only 1.6% below the figure for the same period in 2019. Gerresheimer even upped sales in its core business, with the decline resulting from the changeover in the business model at Sensile Medical (see Plasteurope.com of 19.07.2018). Business with pharmaceutical bottles, injection vials, ampoules and cartridges performed well worldwide, especially in North America. Growth was also generated with prefillable syringes. Sales revenue from plastic packaging for prescription medicines for US pharmacies underwent a slight decline.

Adjusted EBITDA fell 5.6% to EUR 51m. Excluding negative effects from the changeover in the business model at Sensile Medical, adjusted EBITDA for the company’s core business remained at the same level as for the prior year’s period. Gerresheimer’s forecast for fiscal 2020 remains unchanged as a result, and the group is still expecting sales growth in the mid-single-digit percentage range with an adjusted EBITDA margin of around 21%.

Approximately 12% of revenue is earmarked for capital expenditure. Gerresheimer is expanding its production of inhalers in the Czech Republic and constructing a plant for medical plastics systems and syringes in North Macedonia. Capacities for primary pharmaceutical packaging in Brazil, China and India are also being expanded. Further investment is going into the digitalisation of production and processes, in addition to smart products.

The company is also intending to boost its annual organic sales by a percentage in the mid-single-digit range. In the years to come, its targeted medium-term adjusted EBITDA margin is 23%, and annual capital expenditure of 8-10% of sales is planned.

Together with German caps and closures manufacturer FM Plast (Lennestadt-Grevenbrück; www.fm-plast.de), Gerresheimer has made a donation of bottles and caps for hand sanitiser to German non-governmental aid organisation Malteser Hilfsdienst. The donation is intended for use in hospitals and especially for the emergency services Malteser offers.

Gerresheimer’s plants in India are also supporting workers affected by border closures by distributing food packages. “These 500 food packages will help families to get through what is an extremely difficult time for them. They will continue receiving these packages for as long as the lockdown continues,” says Lakshmananarayanan Reddy, plant manager for Gerresheimer in Kosamba, Gujarat / India. The company opened its second Indian plant in Kosamba in late 2019 (see Plasteurope.com of 19.12.2019).