DÜSSELDORF (dpa-AFX) - The pharma packaging manufacturer Gerresheimer believes it is on course to achieve its targets for the year despite a sluggish first half of the year. The MDax group announced on Thursday that the start-up of new production lines and the phasing out of burdens from customers' inventory reductions should lead to a significant upturn in the second half of the financial year (until the end of November). Nevertheless, sales growth is likely to be at the lower end of the forecast range, CFO Bernd Metzner told the financial news agency dpa-AFX. In terms of the profit forecast, this should be offset by improved profitability. Growth is also expected to pick up again in the coming year.

The shares rose significantly to 108 euros shortly after the start of trading, but then weakened somewhat. Most recently, the shares remained just in the profit zone. Investors had been cautious with regard to the annual targets, wrote analyst Olivier Calvet from the major Swiss bank UBS in an initial assessment. However, Gerresheimer's management has now confirmed this. David Adlington from JPMorgan expressed a similar view: "The confirmation of the targets should provide relief, especially if the management is able to underpin the confidence of investors in the morning conference call.

The reduction in inventories was once again felt above all in the PPG division's pharmaceutical primary packaging business for glass vials, cartridges and ampoules. During the coronavirus pandemic, many pharmaceutical companies bought more than they needed in the end. They are therefore reducing these stocks for the time being. The division's earnings fell again in the second quarter.

The Plastics & Devices Division, which focuses on plastic packaging, prefillable syringes, inhalers and pens, among other things, fared better. Although growth in this division was slower in the second quarter than at the start of the year, it still managed to increase sales by 6.7%.

Overall, Gerresheimer achieved sales growth of just over half a percent to 502.4 million euros in the second financial quarter (to the end of May). On an organic basis - i.e. before acquisitions and exchange rate effects - growth amounted to 0.7 percent, resulting in an increase of 1.7 percent for the first half of the year. For the year as a whole, organic growth is expected to remain between 5 and 10 percent, with the focus now more on the lower end. In the coming year, it should then be plus 10 to 15 percent again.

Adjusted for one-off effects, earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) are expected to reach 430 to 450 million euros organically in 2024. After stagnating at a good 107 million euros in the second quarter of the year, a good 188 million euros are on the books after six months.

The bottom line for shareholders in the first half of the year was a result of 45.5 million euros after 46.5 million a year earlier. This was due, among other things, to higher depreciation and amortization./mis/stk/jha/