Gerresheimer cuts its 2025 revenue outlook for second time
It cut the lower end of its revenue growth forecast, now estimating a range of 0% to 2% growth in 2025, down from the previous range of 1-2%.
"Growth momentum in the first half of the year overall was below our expectations," Dietmar Siemssen, CEO of Gerresheimer, said in a statement.
While strong demand in drug delivery systems helped offset temporary market weakness for plastic containment solutions for oral liquids, boosting its plastics and devices business, its packaging glass business was hit by lower demand in moulded glass for cosmetics and in the market for oral liquids.
The moulded glass business, which produces glass packaging for the food and beverage and cosmetic industry, is seen to be reducing growth, margins and returns, analysts at J.P. Morgan said in a research note.
Following Gerresheimer's previous guidance cut in June, activist Asset Value Investor published an open letter in which it urged the company to take steps to improve its business. Those steps included potentially divesting its moulded glass business, a move supported by two other top 30 investors.
Gerresheimer on Thursday confirmed its outlook for an adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 20%, as it expects a stronger second half of the year.
The medical packaging maker also cut its mid-term guidance, now expecting revenue growth in a range of 6-9%, down from a previous range of 8-10%, based on its outlook for 2025 and a stronger focus on cash flow, which led it to revise its investment planning.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
4 minutes ago
- Telegraph
Over half of Germans would not fight for their country
Nearly two-thirds of Germans would 'probably not' defend their homeland from invaders, a survey has found, in a blow to the government's rearmament plans. In a survey carried out for RND, a German broadcaster, 59 per cent of respondents said they were 'probably' or 'definitely' unwilling to defend the country from an attack. Only 16 per cent of Germans were 'definitely' willing to take up arms to defend Germany, while 22 per cent said they would 'probably' do it. The new figures are a headache for Boris Pistorius, the German defence minister, as he leads efforts to rearm Germany and turn it into a serious European security power, following decades of under-investment in the army. In July, Mr Pistorius unveiled plans to recruit 40,000 young adults per year into the Bundeswehr, the German armed forces, by 2031 as part of a new military service scheme. The same scheme plans to send out compulsory questionnaires to young male Germans to fill in once they turn 18, and could be followed by compulsory health screenings of young men to check their suitability for the army. Bundeswehr officials say that the overall size of the army needs to grow from 182,000 soldiers to at least 260,000 by 2035. The Bundeswehr reserve forces also need to be increased from 60,000 to 200,000 people. The German military has struggled for decades with recruitment, partly due to Germans' wartime guilt and a widely held view that their country no longer needed an army. Conscription in Germany, which was deeply unpopular, ended in 2011. But the Russian invasion of Ukraine has prompted a major rethink on security in Berlin, known as the 'Zeitenwende', or turning of the times. Friedrich Merz, the German chancellor, declared that 'Germany is back' after his election victory in February, as he vowed to stand up to Russian president Vladimir Putin. The centre-Right Christian Democrats [CDU] party leader has introduced historic debt reforms, which allow potentially unlimited government defence spending on projects costing more than 1 per cent of GDP. The Merz government has also created a 500bn euro (£435bn) special infrastructure fund, which will rebuild the country's crumbling road and rail networks. The fund is a crucial part of Nato's wider security planning for a potential war with Russia, as Germany would serve as a transit zone for troops and tanks en route to the eastern front. Germany is not the only country having difficulties drumming up recruits: in Italy, a similar survey also found that only 16 per cent of citizens were willing to defend their nation - despite defence spending increasing by 46 per cent over the past decade. In Britain, the army and navy have missed nearly every annual recruitment target since 2010, according to government statistics. The shortfall has been blamed on stagnant pay, poor military housing, a wider downward trend in young people being interested in fighting for their country.
Reuters
4 minutes ago
- Reuters
Swiss stock market falls after Trump's tariff shock
The blue-chip Swiss market index opened 1.8% lower on Monday, the first day of trading after President Donald Trump stunned Switzerland with a 39% tariff rate on its exports to the United States. Francis Maguire reports.
Reuters
4 minutes ago
- Reuters
Tereos profit drops as dollar and low sugar prices weigh
PARIS, Aug 4 (Reuters) - France's Tereos on Monday reported a sharp drop in quarterly profit, saying low sugar prices continued to pressure its core business while a weaker dollar exacerbated import competition for its ethanol activity. Tereos, one of the world's largest sugar producers, had warned previously that a slide in prices that squeezed earnings in its 2024/25 financial year to March 31 would remain a drag in 2025/26. Reporting results for its April-June first quarter, the farmer-owned cooperative said adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) were 56 million euros ($64.82 million), down 79% from the year-earlier period. The company posted a net loss of 65 million euros compared with a year-earlier net profit of 108 million euros. "Lower contracted sales prices in Europe - since Q3 24/25 for sugar and since Q4 24/25 for starch & sweeteners - had an adverse impact on the Group's first quarter," Tereos said in a statement, adding this was compounded by lower yields in Brazil at the start of the harvest. The group maintained its guidance that its net debt versus EBITDA ratio would temporarily peak at around 5.0 during 2025/26, and reiterated that it sees lower anticipated sugar output in Europe in the coming season helping prices gradually recover. It also said its first quarter is typically its weakest period. However, a decline in the dollar linked to the wider geopolitical context had also weighed on the group by pushing down prices for sugar exports and ethanol biofuel, it said. The weaker dollar reinforced the competitiveness of imports of U.S. corn-based ethanol, flows of which into Europe had already been running at record levels, Tereos added. ($1 = 0.8639 euros)
