Germany's Gerresheimer warns accounting probe may hit 2025 results

Feb 10 (Reuters) – German medical equipment maker Gerresheimer said it expects a wider probe into its accounting practices to impact its 2025 results and has initiated the sale of its U.S. packaging business, Centor, to improve its capital structure. Germany's financial regulator, BaFin, announced in September a review of Gerresheimer's financial statements as of November 30, 2024, citing concerns that the company may have prematurely recognised revenue for some customer contracts. The company has since then parted ways with CEO Dietmar Siemssen, following several profit warnings and a sharp plunge in its shares. Bernd Metzner resigned as CFO months earlier. Gerresheimer said on Tuesday it has engaged a second auditing firm to examine revenue recognition and accounting practices for 2024 and 2025, noting that the findings would impact its 2025 outlook. "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. Gerresheimer delayed the release of its results, originally due February 26, citing the probe. A new publication date would be set in consultation with the auditor, it said. 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 between 16.5% and 17.5%, from the earlier range of 18.5% to 19.0%. Adjusted earnings per share are now expected to decrease in the high-double-digit percentage range and may turn negative. For 2026, the company expects revenues of around 2.3 billion euros to 2.4 billion euros ($2.73 billion to $2.85 billion). A sale of its moulded glass business will not be initiated in 2026, it added. (Reporting by Chandni Shah in Bengaluru; Editing by Vijay Kishore and Rashmi Aich)

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