Gerresheimer shares plunge as results delayed, financial probe widens

(Sharecast News) - Shares in German medical equipment maker Gerresheimer plunged on Wednesday - wiping more than a third off its value - after the company delayed its annual results and warned a probe into its accounts would impact earnings. It said a second audit firm had been to examine accounting practices for the 2024 and 2025 financial years.

Germany's financial regulator, BaFin, in September announced a review of Gerresheimer's financial statements as of November 30, 2024, amid concerns the company may have booked revenue for some contracts early.

"According to the findings to date, the new investigations initiated by the company indicate that individual employees have violated internal guidelines and IFRS (International Financial Reporting Standards) requirements," Gerresheimer said in a statement. Shares in the firm were down more than 35% on the news.

It also delayed the release of its results, originally due to be released on February 26. A new publication date will be set in consultation with the auditor.

The company expects the decrease in 2025 revenues to be at the higher end of its earlier forecast range of minus 4% to minus 2%, or slightly better.

It also cut its forecast for earnings before interest, taxes, depreciation and amortisation margin to 16.5% - 17.5% from an earlier range of 18.5% - 19.0%. Adjusted earnings per share are now expected to decrease in the high-double-digit percentage range and may turn negative, the company added.

Gerresheimer also began a sale process for its Centor prescription medicine packaging business to bolster its balance sheet and said the planned offloading of its molded glass business would not start this year.

Reporting by Frank Prenesti for Sharecast.com