Gerresheimer's Accounting Crisis Intensifies as Auditor Faces Scrutiny

Gerresheimer's accounting scandal widens as KPMG faces misconduct proceedings for certifying flawed 2024 accounts. Shareholders pursue claims, and a takeover bid stalls amid delayed financials.

The fallout from Gerresheimer's accounting scandal continues to widen. Following the disclosure of erroneous revenue bookings, the company's external auditor is now in the regulatory crosshairs. Germany's Audit Oversight Body (APAS) has initiated professional misconduct proceedings against KPMG. The action stems from KPMG issuing an unqualified audit opinion on the 2024 financial statements, which subsequently were found to contain incorrect bookings totaling 35 million euros.

Adding to the controversy is the timing of KPMG's involvement. The firm only replaced the previous auditor, Deloitte, in 2024, and its first audit of Gerresheimer's books promptly certified a flawed set of accounts. Concurrently, a second audit firm, Grant Thornton, is now examining the financial records for both the 2024 and 2025 fiscal years.

Systemic Violations and Financial Repercussions

At the heart of the issue are "bill-and-hold" agreements. The company invoiced customers for goods but delayed their shipment, recognizing the revenue prematurely in violation of International Financial Reporting Standards (IFRS). An independent law firm has confirmed these were systematic breaches.

The scale of the required corrections is substantial. Beyond the 35 million euros in revenue, approximately 24 million euros in adjusted EBITDA is under review. Additional areas of concern include potentially misstated lease liabilities of 65.5 million euros and capitalized development costs amounting to 29.4 million euros.

Legal pressure is mounting from shareholder groups. The German Association for the Protection of Shareholders (DSW) is evaluating potential damage claims against former CEO Dietmar Siemssen and ex-CFO Bernd Metzner, supported by an expert legal opinion. The supervisory board, particularly its audit committee, is also under examination. Marc Tüngler, DSW's Managing Director, stated that the expansion of the German financial regulator BaFin's investigation into additional matters necessitates a coordinated effort to pursue compensation. Tüngler added that as claims become clearer, the involvement of a litigation financier becomes more likely.

A Corporate Standstill

The failure to file certified accounts has brought much of the company's normal operations to a halt. The quarterly report initially scheduled for mid-April has been postponed, as has the Annual General Meeting set for early June, both indefinitely delayed. This logjam also affects a potential takeover bid. According to Reuters, US-based Silgan Holdings had considered an offer of 41 euros per share—more than double the stock's price at the time—but any such move is currently blocked.

Despite the significant uncertainty, some institutional investors, including CastleKnight and Deka Investment, have reported building new positions at the heavily discounted share price.

All eyes are now on June 2026 as a critical deadline. By this date, management must present the audited financial statements alongside the results of ongoing credit negotiations. They must also demonstrate whether the current year's revenue forecast of up to 2.4 billion euros remains achievable. The interim report, slated for July 14, 2026, is expected to reveal if the company has regained control over its financial reporting.