Gerresheimer delivers sustained profitability growth in 2016 and proposes a dividend increase of 23.5%

Düsseldorf (ots) -

- Cross reference: Full press release is available at
http://www.presseportal.de/dokumente -

- Proposed dividend of EUR 1.05 per share (2015: EUR 0.85 per
share) marks an increase of 23.5%
- Revenues up 7.2% in financial year 2016 to EUR 1,375.5m
- Revenues at constant exchange rates EUR 1,383.1m with 2.9%
organic revenue growth
- Adjusted EBITDA climbs to EUR 307.8m; at constant exchange rates
to EUR 311.3m
- Adjusted EBITDA margin rises by 1.9 percentage points to 22.4%
- Adjusted earnings per share after non-controlling interests
increased from EUR 3.41 to EUR 4.22
- Focus on core business: sale of the Life Science Research
Division completed as of October 31, 2016

Gerresheimer AG brought financial year 2016 to a successful close
and sees strong growth prospects for the years ahead. Gerresheimer is
one of the leading partners to the pharma and healthcare industry
worldwide and manufactures glass and plastic pharma and cosmetics
packaging. "2016 was a successful year for us. We delivered on our
guidance for all key performance indicators and have grown
substantially. Moreover, we further sharpened our focus on our core
business. Going forward, we will continuously expand our development
capabilities and product portfolio for the biotech and specialty
pharma industry. In addition, we aim to further increase our
profitability. The Company is ready for the challenges in the next
years ahead," said Uwe Röhrhoff, CEO of Gerresheimer AG.

As of October 31, 2016, Gerresheimer sold its Life Science
Research Division-the laboratory glassware business. In accordance
with International Financial Reporting Standards (IFRS), the division
is therefore classified as a discontinued operation. In simple terms,
from the time of classification as a discontinued operation, all
income and expense items in the consolidated income statement are
adjusted for the current year and retrospectively for all comparative
periods to be reported upon and are shown in a separate item.

Gerresheimer increased revenues in financial year 2016 (December
1, 2015 to November 30, 2016) by 7.2% to EUR 1,375.5m. On an organic
basis, revenues went up by 2.9% to EUR 1,383.1m, within the target
range of EUR 1,400m plus or minus EUR 25m. Notable revenue growth was
generated with inhalers, plastic pharma packaging, injection vials
and cosmetic glass.

Adjusted EBITDA climbed in financial year 2016 to EUR 307.8m and
at constant exchange rates to EUR 311.3m-at the upper end of the
guidance range of EUR 305m plus or minus EUR 10m. The adjusted EBITDA
margin was for the first time above the 22% mark, at 22.4% compared
with a prior-year figure of 20.5%. Net income increased by 49.3% to
EUR 168.2m, notably due to the sale of the Life Science Research
Division. Adjusted earnings per share after non-controlling interests
rose from EUR 3.41 to EUR 4.22.

At 15.8% excluding the Life Science Research Division, average net
working capital as a percentage of revenues likewise exceeded the
Company's expectations. Net financial debt was scaled back by EUR
89.3m to EUR 788.2m, mainly due to the proceeds from the sale of the
Life Science Research Division. Leverage, the ratio of net financial
debt to adjusted EBITDA, was reduced from 2.9 to 2.6.

Gerresheimer's capital expenditure in financial year 2016, at EUR
113.2m compared with EUR 125.8m in the prior year, corresponded to
8.2% of revenues at constant exchange rates excluding the Life
Science Research Division. The Company continued to invest in
standardizing and modernizing the machinery park in the glass
segment. It also modernized the German cosmetic glass plant in Tettau
and further expanded decorating capacity. Expansion continued at the
Peachtree City plant in the USA, which produces medical plastic
systems such as asthma inhalers.

"We are optimistic for the future and continue to invest in key
growth markets, even though the beginning of financial year 2016/17
appears to be more difficult than the start of the prior year. Our
dividend proposal, representing a 23.5% increase to EUR 1.05 per
share, reflects the significant improvement in our financial
performance indicators," Uwe Röhrhoff added.

Outlook

Gerresheimer's expectations for financial year 2017 are 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 in
2017-Gerresheimer has assumed an exchange rate of approximately USD
1.10 to EUR 1.00.

In financial year 2017, Gerresheimer anticipates Group revenues of
around EUR 1.43bn (plus or minus EUR 25m) on a constant exchange rate
basis, compared with EUR 1,375.5m in 2016. Adjusted EBITDA is
expected to increase from EUR 308m in 2016 to some EUR 320m (plus or
minus EUR 10m) in financial year 2017. Based on the improvement in
adjusted EBITDA, adjusted earnings per share after non-controlling
interests-the basis of Gerresheimer AG's dividend policy-is projected
to rise to a figure in the range EUR 4.20 per share to EUR 4.55 per
share (2016 adjusted for the discontinued operation comprising the
Life Science Research Division: EUR 4.07 per share).

Largely due to the favorable growth prospects and as a result of
the initiatives to boost productivity and quality, capital
expenditure in the financial year 2017 is expected to amount to
around 8% of revenues at constant exchange rates.

The Company's expectations through to the end of 2018 are as
follows:
- Gerresheimer aims for average organic revenue growth of 4% to
5%.
- For the adjusted EBITDA margin, the Group's target is some 23%
for financial year 2018. The Company is thus raising the
previous guidance of above 22% for this ratio.
- In order to meet these targets, Gerresheimer will, in all
probability, require annual capital expenditure of the order of
about 8% of revenues at constant exchange rates.
- Alongside the operating measures, the Group's net working
capital profile has also significantly improved, among other
things as a result of the sale of the glass tubing business and
the Life Science Research Division together with the acquisition
of Centor. For the future, the Company therefore anticipates
that average net working capital as a percentage of revenues
will be approximately 16% (previously approximately 17%).
- Gerresheimer expects that its operating cash flow margin will be
around 13%, as before.

The Group's long-term target remains:
- As before, attainment of at least 12% ROCE.
- Gerresheimer believes a net financial debt to adjusted EBITDA
ratio of 2.5 to be right for Gerresheimer, with temporary
variation above or below this tolerated because expedient M&A
activity cannot be planned in detail.

Dividend

At the Annual General Meeting on April 26, 2017, the Management
Board and Supervisory Board will be jointly proposing that a dividend
of EUR 1.05 per share be paid out for financial year 2016. This
represents an increase of 23.5% against the prior-year dividend. The
dividend ratio amounts to 24.9% of adjusted net income after
non-controlling interests.

The Annual Report is available here:
www.gerresheimer.com/en/investor-relations/reports

Contact:
Jens Kürten
Group Senior Director Communication & Marketing
Phone +49 211 6181-250
Fax +49 211 6181-241
E- Mail j.kuerten@gerresheimer.com

Original-Content von: Gerresheimer AG, übermittelt durch news aktuell