Gerresheimer Faces Escalating Scrutiny as Accounting Crisis Deepens

German regulator BaFin probes Gerresheimer's financial reporting again, as accounting errors and a 75% share price drop deepen the pharmaceutical packaging firm's crisis.

Germany's financial regulator, BaFin, has initiated a second formal audit into Gerresheimer's financial reporting, even as a prior investigation remains ongoing. The pharmaceutical packaging specialist is embroiled in a severe crisis of confidence, characterized by allegations of misbooked revenues, omitted depreciations, and potential balance sheet errors worth millions. This turmoil has contributed to a staggering 75 percent decline in the company's share price over the past year.

A Cascade of Accounting Issues

The core of the problem centers on the company's accounting practices. BaFin's new probe, launched on March 6, 2026, targets the group's interim financial statements for the period from December 2024 to May 2025. This runs parallel to the existing examination of the full-year 2024 accounts.

Key areas under scrutiny include the use of "bill-and-hold" agreements, a method where revenue is recognized before goods are physically delivered to the customer. Regulators have also flagged failures to record necessary impairment charges for the Swiss subsidiary Sensile Medical, which carried a book value of nearly €200 million. Further items on the audit list are incorrectly reported lease liabilities of €65.5 million and capitalized development costs totaling €29.4 million.

An independent special audit commissioned by Gerresheimer itself confirmed the scale of the discrepancies. Preliminary findings indicate that revenue for the 2024 fiscal year was likely overstated by approximately €35 million, while adjusted EBITDA was €24 million lower than initially reported. The company has acknowledged that certain employees violated internal guidelines and accounting rules.

Profit Warning and Strategic Shifts

These balance sheet problems compound existing operational weaknesses. For 2025, Gerresheimer now anticipates an adjusted EBITDA margin of just 16.5% to 17.5%, a downgrade from earlier guidance of 18.5% to 19.0%. Adjusted earnings per share are projected to fall by a high double-digit percentage, with a loss not being ruled out. The company also expects impairment charges of €220 to €240 million, primarily related to Sensile Medical and the US subsidiary Moulded Glass Chicago.

Management's response involves significant restructuring. The profitable US unit Centor Inc. is slated for sale in 2026, and the Chicago Heights plant will close by year-end. The decision to divest one of its most profitable subsidiaries may further pressure already strained margins. Conversely, management has halted the previously planned sale of the Moulded Glass business.

Shareholder activity is intensifying alongside these events. The Deutsche Schutzvereinigung für Wertpapierbesitz (DSW) is evaluating potential damage claims against former executive board members and the supervisory board. In a sign that some investors see opportunity amid the uncertainty, the CastleKnight Master Fund LP reported a 4.08% stake in early March.

Critical Deadlines Loom

The company faces immediate pressure with upcoming deadlines. The audited annual and group financial statements, originally scheduled for release on February 26, have been postponed and are now expected by March 31. A trading update for Q1 2026 will follow on April 16, with the Annual General Meeting set for June 3.

Looking further ahead, Gerresheimer has provided a revenue forecast of €2.3 to €2.4 billion for 2026. Market confidence in these targets hinges critically on the company's ability to present credible, corrected financial statements by the end of March. A timely and satisfactory resolution could alleviate some of the uncertainty currently weighing on the stock, which, despite recent pressure, still trades approximately 26% above its 52-week low of €15.57 marked in February.