The fallout from the accounting scandal at packaging specialist Gerresheimer continues to expand. Regulatory pressure is now intensifying on auditor KPMG, while a prominent shareholder association is preparing legal action against former executives. This follows an initial investigation by German financial watchdog BaFin into systematic breaches of IFRS accounting rules.
Auditor KPMG Faces Regulatory Procedure
Germany’s Auditor Oversight Body (APAS) has initiated a professional conduct procedure against audit firm KPMG. The allegation is serious: KPMG issued an unqualified audit opinion for the 2024 financial statements despite the presence of systematic errors in revenue recognition. The timing is particularly notable, as KPMG had only just replaced the previous auditor, Deloitte, in 2024 before certifying the flawed accounts.
The core issue involves so-called bill-and-hold agreements. Gerresheimer invoiced customers for goods but delayed their shipment, booking the revenue prematurely in violation of IFRS standards. These systematic breaches have been confirmed by an independent law firm.
The financial impact is substantial. Misstated 2024 revenue amounts to 35 million euros, with a corresponding correction to adjusted EBITDA of 24 million euros. Furthermore, planned impairment charges are estimated between 220 and 240 million euros. The scope of the BaFin probe has also widened, now focusing on incorrectly reported lease liabilities (65.5 million euros), erroneously stated useful lives for capitalized development costs (29.4 million euros), and previously unrecognized impairments in the Advanced Technologies segment (196.5 million euros).
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Financial Calendar in Disarray and Legal Action Looms
The absence of certified financial statements has brought the company’s entire reporting schedule to a halt. The publication of the 2025 annual report is postponed until an estimated June 2026. Subsequently, the Q1 2026 report and the ordinary annual general meeting have been suspended indefinitely. By violating contractual reporting obligations, Gerresheimer is in technical default. Management is currently negotiating with lenders for deadline extensions to prevent the termination of credit facilities.
In parallel, the German Shareholder Association (DSW) is examining potential damage claims against former CEO Dietmar Siemssen and former CFO Bernd Metzner, supported by an expert legal opinion. The supervisory board, particularly its audit committee, is also under scrutiny in this process.
Asset Sales and Cautious Institutional Interest
Operationally, management is pursuing cuts. The US pharmaceutical packaging division, Centor, has been put up for sale via Morgan Stanley. This unit was last carried on the books at a value of 292 million euros. Concurrently, Gerresheimer will close its Chicago Heights plant by the end of 2026. Potential acquisition scenarios by external interested parties remain blocked as long as no audited financial statements are available.
Despite the unresolved situation, some institutional investors are using the sharply reduced share price to establish positions. CastleKnight and Deka Investment have recently reported new stakes in the company. However, the issued revenue forecast of 2.3 to 2.4 billion euros for 2026 is explicitly contingent on successful credit negotiations and the outcome of the BaFin investigation. The next reliable milestone is the targeted publication of the annual report in June 2026. Until then, the stock remains vulnerable to any new developments in this ongoing crisis.
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