Gerresheimer AG faces regulatory‑driven financial corrections

The German packaging‑specialist Gerresheimer AG (Xetra: GERA) announced that it will adjust its 2024 financial statements following a review by the Federal Financial Supervisory Authority (BaFin). The corrections arise from the company’s use of “Bill‑and‑Hold” agreements, a practice that BaFin determined had led to premature revenue recognition.

Scope of the adjustments

  • Revenue re‑statement – Approximately 28 million EUR of sales recorded under Bill‑and‑Hold arrangements will be removed from the 2024 accounts.
  • Profit impact – While the direct financial effect is limited, the correction reduces the reported earnings for the year and requires a downward adjustment of the 2024 earnings‑per‑share figure.
  • Operational review – Gerresheimer’s board has terminated the disputed booking practice and will implement new internal controls to prevent a recurrence.

Market reaction

  • Share price – Following the announcement, the stock fell sharply, contributing to the company’s decline for the year. The price dropped from a high of 85.25 EUR (2025‑02‑18) to 22.6 EUR (2025‑12‑08) and closed at 26.9 EUR on 2025‑12‑22.
  • Investor sentiment – Analysts have lowered price‑targets and raised concerns about the erosion of confidence in Gerresheimer’s financial reporting. The company’s price‑earnings ratio, currently above 40, is expected to tighten as earnings are corrected.

Regulatory context

BaFin’s intervention followed an internal audit that identified non‑compliance with German Securities Trading Act (WpHG) requirements. The authority’s action was announced via an EQS‑PVR release and a subsequent voting‑rights announcement, underscoring the legal implications of the findings.

Company background

Gerresheimer AG is a German health‑care company headquartered in Düsseldorf that designs and manufactures glass and plastic containers for pharmaceuticals and medical devices. Listed on Xetra since June 11 2007, the company’s market capitalization is approximately 931 million EUR.

Outlook

Gerresheimer has committed to restoring transparency and adhering to stricter accounting standards. The company’s management will communicate the revised financial statements and the steps taken to strengthen internal controls. Investors will need to monitor how the corrections affect future earnings guidance and whether the market reassumes confidence in the firm’s long‑term prospects.