Gerresheimer, a provider of systems and solutions in the packaging sector, has reported a 1.5% increase in revenue, reaching €1.46bn ($1.63bn) for the first nine months (9M) of financial year 2024 (FY24).

This performance marks a slight rise from €1.44bn recorded during the same period in the previous fiscal year.

The company's adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) also saw an uptick, standing at €292.7m compared to €285.2m in the first nine months of FY23.

Meanwhile, Gerresheimer’s adjusted EBITDA margin (currency-adjusted) improved marginally to 20.0% in 9M FY24, up from 19.8% in the corresponding period of the previous year.

This growth has been attributed to the success of the company's Plastics & Devices division, which experienced a surge in demand for innovative and customised solutions.

However, Gerresheimer's Primary Packaging Glass division faced challenges due to ongoing destocking effects.

The Plastics & Devices segment reported a significant revenue increase to €820.1m in the first nine months of FY24, up from €754.8m in the same period of 2023.

The division's adjusted EBITDA also rose to €208.5m, and its adjusted EBITDA margin expanded by 160 basis points to 25.4%.

In contrast, the Primary Packaging Glass division saw a decrease in revenue to €648.0m and a drop in adjusted EBITDA to €119.7m.

For the full fiscal year 2024, Gerresheimer has revised its organic revenue growth forecast to between 3% and 4%, down from the previously projected 5% to 10%.

The company's adjusted EBITDA expectations have also been changed to a range of €415m to €430m.

Adjusted earnings per share (EPS) is anticipated to grow by 2% to 8%, a decrease from the earlier estimate of 8% to 12%.

Gerresheimer CEO Dietmar Siemssen said: "Revenue growth in 2024 will be lower than just recently anticipated due to a lower demand in our Tubular Glass business.

"Our growth prospects in the coming years remain positive despite the temporary market weakness in one of our submarkets. We are currently experiencing particularly strong growth in our product solutions for large molecule biologics such as GLP-1 [glucagon-like peptide-1]. Here, the successful transformation of our company through our ‘formula g’ corporate strategy with an increased focus on these high-growth, high-margin markets is paying off.”

In May this year, Gerresheimer Glas, a subsidiary of Gerresheimer, entered into a purchase agreement to acquire Blitz LuxCo, the holding company of Bormioli Pharma.

"Gerresheimer sees 1.5% revenue growth in 9M FY24 " was originally created and published by Packaging Gateway, a GlobalData owned brand.