Gerresheimer's shares fall 11% after another outlook cut

Gerresheimer's shares fell 11% after the German packaging and medical equipment maker issued its third 2025 guidance cut this year, now projecting a 2-4% organic revenue decline due to slowing demand in personal care and beauty products. This latest downgrade compounds an already difficult period for the company, whose shares have lost nearly half their value since January, partly attributable to an ongoing accounting investigation by Germany's financial regulator.

Analysis

Oct 9 (Reuters) - Shares in Gerresheimer (GXIG.DE) fell 11% on Thursday, a day after the German packaging and medical equipment maker cut its 2025 guidance for the third time this year. Its shares were trading at 33.2 euros ($38.58) at 0710 GMT and at the bottom of the German midcap index (.MDAXI). The Week in Breakingviews newsletter offers insights and ideas from Reuters' global financial commentary team. Sign up here. The profit warning comes amid slowing demand for personal care and beauty products that has weighed on consumer goods companies. Advertisement · Scroll to continue Gerresheimer, which makes rounded jars for creams and roll-on bottles for deodorants, expects organic revenues to decline between 2-4% year-on-year, after previously expecting between 0-2% growth. Its shares have lost almost half of their value since January, also taking a knock from an investigation started by Germany's financial regulator which alleged accounting rule violations. ($1 = 0.8607 euros) Reporting by Paolo Laudani in Gdansk, Editing by Matthias Williams Our Standards: The Thomson Reuters Trust Principles. Gerresheimer's shares experienced an 11% decline on Thursday, trading at 33.2 euros, placing the stock at the bottom of the German midcap index following its third downward revision of 2025 guidance this year. The company now projects an organic revenue decline of 2-4% year-on-year, a significant reversal from its prior expectation of 0-2% growth. This profit warning primarily stems from a notable slowdown in demand within the personal care and beauty products sector, impacting consumer goods companies broadly. Compounding this operational headwind, Gerresheimer's stock has already lost nearly half its value since January. Further pressure on the company's valuation and outlook originates from an ongoing investigation by Germany's financial regulator. This probe alleges accounting rule violations, introducing a layer of regulatory and legal risk that could significantly affect future financial stability and investor confidence.

Key Decisions for Investors

• Given the third guidance cut and significant share price depreciation, investors should exercise extreme caution and re-evaluate their long positions in Gerresheimer.
• Monitor closely for any stabilization in personal care and beauty product demand, as well as concrete steps taken by management to address slowing organic revenue, which is projected to decline 2-4%.
• Assess the potential implications of the ongoing accounting violations investigation by Germany's financial regulator, as this legal uncertainty poses a significant unquantified risk to future performance and governance.