Additional errors have emerged in the financial statements of packaging group Gerresheimer, affecting the past fiscal year as well. The Düsseldorf-based company cited violations by its own employees of internal guidelines and international accounting standards (IFRS). The issues concern the recognition of revenues and the valuation of inventories, Gerresheimer announced Tuesday evening. Initial personnel measures have already been taken. Germany's financial regulator BaFin, the so-called "balance sheet police," had criticized in September that Gerresheimer had booked revenues for 2024 prematurely, even though the goods had not yet been delivered.
To ease financial pressure, the company now plans to close a plant in the United States and sell its US subsidiary Centor, which manufactures packaging systems for prescription drugs in the US. At the end of 2024, Centor was valued at 292 million euros on the balance sheet. There is reportedly strong interest from potential buyers. Investment bank Morgan Stanley is tasked with finding a new owner before the end of this year. By contrast, the sale of the Moulded Glass container division, originally planned for 2026, has been postponed. Gerresheimer must write off between 220 and 240 million euros on its US subsidiary Moulded Glass Chicago Inc and on projects by its Swiss subsidiary Sensile Medical. The container glass plant in Chicago Heights is to be closed by the end of 2026, with operations relocated to three sites in Italy and India.
The write-downs and balance sheet adjustments may have pushed the company into the red last year. Preliminary findings indicate that revenue fell by two percent or less, but the adjusted operating profit margin (Ebitda margin) stands at 16.5 to 17.5 percent, below the already lowered autumn forecasts of 18.5 to 19 percent. The incorrectly booked revenues also impacted 2025, the company said. In the worst case, the adjusted net result could be negative.
According to the statement, the 2024 balance sheet included 35 million euros in excess revenue and 24 million in excess adjusted Ebitda—significantly more than previously thought. BaFin objects to the accounting treatment of so-called "bill-and-hold" arrangements, in which goods are invoiced to the customer but delivered at a later date and stored by the manufacturer in the meantime. Under IFRS, revenue should only be recognized upon delivery, as Gerresheimer acknowledged in December.
A second auditing firm has now been brought in to clarify the situation and ensure that legacy issues are fully resolved. As a result, the release of the 2024 financial statements, originally scheduled for February 26, will be delayed. Despite an expected weaker first half of the year, Gerresheimer forecasts sales growth of 2.3 to 2.4 billion euros and an operating margin of 18 to 19 percent for the current year.
Gerresheimer shares lost around twelve percent in after-hours trading on Tuesday following the news.
(Reporting by Philipp Krach and Alexander Hübner. Edited by Ralf Bode. For inquiries, contact our editorial team at frankfurt.newsroom@thomsonreuters.com)
