Gerresheimer AG confronts accounting corrections amid cautious market reaction
Gerresheimer AG, the German specialist in glass‑ and plastic‑based packaging for the health‑care sector, has announced that it will revise its 2024 consolidated financial statements. The revision follows a supervisory audit by the Federal Financial Supervisory Authority (BaFin) that identified misclassifications of Bill‑and‑Hold contracts totaling approximately €28 million. In the audit, BaFin concluded that the company had been consistently recording revenues from these contracts in the wrong period, leading to an overstatement of sales in 2024.
Nature of the correction
Under the Bill‑and‑Hold accounting method, a manufacturer may recognize sales revenue before the buyer has formally accepted the goods, provided the product is fully prepared for delivery. Gerresheimer’s internal review, conducted with the assistance of an external legal counsel, confirmed that the company had, for several years, applied this practice incorrectly to a subset of its contracts. As a result, the 2024 earnings report will be adjusted downward by roughly €28 million, and the related revenue will be re‑allocated to the appropriate future periods.
The company stated that the adjustment is “unambiguous” and that it does not anticipate any material impact on its overall profitability or cash‑flow generation. Gerresheimer has also announced that it will discontinue the Bill‑and‑Hold practice in its 2025 consolidated accounts and will adopt a more conservative revenue‑recognition policy.
Market response
Despite the negative headline, the market has largely absorbed the news without a sharp sell‑off. On December 22, Gerresheimer’s shares traded in a tight range around €27.64 (close price, 2025‑12‑21), reflecting the company’s sizable market cap of €931 million. Analysts noted that the correction, while sizeable in absolute terms, represents a relatively small fraction of the firm’s annual turnover and is unlikely to materially alter its long‑term outlook.
A Jefferies analyst, James Vane‑Tempest, reiterated a Buy rating on the stock and maintained a €34.10 price target. Vane‑Tempest emphasized that the correction is part of a broader trend of greater transparency in the life‑sciences packaging sector and that Gerresheimer’s core business remains robust. His comment underscored the confidence that the company’s long‑term fundamentals—its position as a leading supplier of specialty containers and its diversified customer base—will sustain its valuation.
Regulatory backdrop
BaFin’s investigation was prompted by an audit of Gerresheimer’s financial records that highlighted the persistent revenue‑recognition issue. The authority’s findings have prompted the company to engage an external legal firm to oversee the correction process and to ensure full compliance with German GAAP and EU IFRS standards.
In addition to the revenue adjustments, Gerresheimer disclosed that it will release an updated financial statement for the 2024 fiscal year within the next 30 days. The company’s board has requested an extension for the filing to accommodate a thorough review of the impacted accounts.
Strategic implications
The decision to abandon the Bill‑and‑Hold method aligns Gerresheimer with industry best practices and mitigates the risk of future regulatory scrutiny. While the immediate financial impact is modest, the move is expected to reinforce investor confidence in the company’s governance and reporting discipline.
Gerresheimer’s focus on specialty packaging for life‑sciences applications—particularly pre‑filled syringes and other drug delivery systems—continues to drive growth. The firm’s operations in Düsseldorf and its global supply chain position it well to capitalize on increasing demand for high‑integrity packaging solutions in a highly regulated market.
In summary, Gerresheimer AG’s corrective action on its 2024 accounts, driven by BaFin’s audit findings, is a significant but manageable adjustment. The market has largely accepted the news, and the company’s valuation remains supported by a bullish analyst outlook and a stable share price in a quiet trading week ahead of the holiday season.
