Gerresheimer AG
XETRA:GXI
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Gerresheimer AG
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The conference is now being recorded. Welcome to the conference call regarding the publication of Gerresheimer AG's Q1 Results 2021. [Operator Instructions] Now I hand over to Ms. Carolin Nadilo, Head of Investor Relations at Gerresheimer AG.
Welcome, everybody, and thank you for joining us today to review our first quarter results. With me today are Dietmar Siemssen, our CEO; and Dr. Bernd Metzner, our CFO. As we did in the past, we are presenting a set of slides accompanying the management's notes. The interim statement, the presentation and the press release are posted on our Investor Relations website. Please note, this call is being webcast live and will be filed on our website, too. Before we start, I have to remind you that the presentations and discussions are conducted subject to the disclaimer. We will not read the disclaimer but propose taking it as read into the records for the purpose of this call. As usual, we start with the presentation by Dietmar Siemssen and Dr. Bernd Metzner. And after that, we are open for your questions. And now it's my pleasure to turn the call over to Dietmar. Thank you.
Yes. Thank you, Carolin. Good afternoon, ladies and gentlemen. Good morning to those joining us from overseas, and welcome to our Q1 conference call. I'm pleased to have you on this call today, and I hope everybody is healthy, and I also hope you stay -- it remains like this, stay healthy. The world is still facing COVID-19 unchanged. We are successful in managing our worldwide production footprint, ensuring deliveries and shipments to our customers worldwide. The Gerresheimer team is managing this extraordinary situation in an impressive way. The transformation we spoke about several times is now more than our plan, and it's materializing. The results become visible and are further motivating the team. Change and the right mindset for growth have taken root in the company, and we are achieving our targets together as one Gerresheimer. With a pretty good start into the financial year 2021, we underline the success of our ongoing strategy process formula G. We see the first quarter as a good starting point for solid mid-single-digit growth in 2021. Our core business comprising the divisions, Plastics & Devices and Primary Packaging Glass showed organic revenue growth of 3.1%. On group level, we achieved organic revenue growth of 3.7%. The ongoing lockdowns are still affecting parts of our business, but we have been able to compensate these headwinds with a good operational performance in other businesses, for example, with COVID-19 vials or further shipments of high-value products. Our high-value solutions will be one of the key growth drivers from 2021 onwards. The first quarter has shown solid growth of more than 40% plus year-over-year, and this trend will sustain. I will come to this in a minute. The adjusted EBITDA margin in our core business achieved 19%, an increase of roughly 80 basis points compared to the first quarter 2020. The organic adjusted earnings per share have increased by 29.3%, resulting in now EUR 0.57 per share. We are on good track, and the second quarter will be even stronger. The order books are filling well. We are clearly benefiting from our strategic new positioning with increased focus on customer centricity, excellence, cost efficiency, innovations and not to forget, our very strong positioning in sustainability targets. We are looking into a solid first half year and confirm our full year guidance as well. The positive effects of One Gerresheimer is the key for our long-term success. We have formed a global joint team for Gerresheimer. Together, we are on a mission for sustainable profitable growth. We are serving our customers alongside their whole product life cycles by connecting our competencies globally. Our global key account management knows exactly the needs of our customers. We are becoming the go-to partner for pharma and health care, our success, for example, in Gx Biological Solutions underlines this very well. The consequent implementation of our strategy formula G sets the foundation for sustainable, profitable growth. We are on our way to a growth company as innovation leader and solution provider. Advanced Technologies will be a key driver of our future growth. In our digital hub, we are developing smart, intelligent and connected devices to serve the global megatrends in pharma and health care. We are convinced with our future smart devices, we can significantly contribute to the core challenges of the pharma and health care industry, like the demand of smart and simple self-medication devices or the challenges of rising health care costs in general. Now I would like to highlight the performance of our high-value solutions. High-value solutions include products as ready-to-fill syringes and vials or Elite Glass and further innovative product solutions. Our high-value solutions are an important growth driver for the fiscal year 2021 and beyond. With an increase of more than 40%, also clearly driven by a very strong customer response in our Biological Solutions segment, we did a major step forward. Gx Biological Solutions acts completely cross-BU and cross-divisional. We are serving biotech customers with the whole Gerresheimer portfolio and operate as a full service provider for small, mid and also large biotech companies. In this segment, it is essential to offer a broad product portfolio as well as services, like, for example, laboratory testing, stability testing and regulatory support globally. With our broad know-how, global footprint and the experienced technical experts, we are the right partner for our customers. And the implemented strategy pays off. We showed an increase of 50% and even more in Biologics compared to Q1 2020. This actually was a kickstart into the year of Biologics, clearly outperforming the underlying market growth. We are on a good path and expect continuous attractive growth rates within this business in the next years. Our global network of technical innovation centers serves the following purpose. We have to concentrate our competencies, the experts and the necessary equipment to be efficient. At the same time, we have to ensure global availability of this expertise to our R&D centers, to customers and also to our plants. The success of our network and the newly installed technical innovation centers is obvious. That's why we continuously expand this network to the existing centers, like, for example, the smart device center in Olten, Swiss, or the center in Wackersdorf for medical systems and process intelligence, or Buende for syringes. We added a new glass innovation technology center in Vineland, that was in 2019, in the U.S., and just recently decided to build up a new competence center for molded glass in Lohr. And we are planning further competence in innovation centers in Asia, like India and China. With this, I hand over to Bernd for the financial details.
Thank you, Dietmar, and welcome, everybody, also from my side. Before we go into the analysis of our Q1 2021 figures, I want to briefly highlight 5 aspects. First, the organic growth in our core business of 3.1% is already within the full year 2021 sales guidance range. And we achieved this despite ongoing headwinds in our Molded Glass Cosmetics business due to the persistent COVID-19 lockdown. Second, very important, sales were particularly boosted by our key growth drivers, high-value solutions. Third, we achieved strong EBITDA margin expansion in our core business and for the group despite the furnace construction and Primary Packaging Glass, which hurted us temporarily by EUR 5 million in Q1. Fourth, our adjusted EPS increased FX adjusted by 29% year-over-year. Fifth, and we showed a significant better free cash flow than a year ago despite higher CapEx. To sum it up, we had a good start into the year and, more important, the positive momentum should accelerate in Q2. Now let's dive into the analysis of the key financials for Q1 2021. Reported revenues in Q1 2021 came in at EUR 303 million, which was on par to last year's quarter. Adjusted for FX effects, we achieved organic revenue growth of 3.1% year-over-year in our core business. This is a strong achievement in light of headwinds from the ongoing lockdown, especially in our Molded Glass Cosmetics business. These headwinds amounted to around EUR 4 million. Both divisions, Plastics & Devices as well as Primary Packaging Glass achieved good revenue growth rates in Q1.Let's turn to earnings. We managed to increase the adjusted EBITDA from EUR 51 million in Q1 2020 to EUR 54 million. As a result, the adjusted EBITDA margin surged by 100 basis points to 17.9% compared to a year ago. Looking into our core business, we achieved an organic increase of the adjusted EBITDA of 7.0% to EUR 57 million, resulting in an 80 basis points margin increase to 19.0%. Bottom line, the adjusted net income increased by 33% to EUR 18 million or EUR 0.57 per share. Adjusted for FX, which is the base for our full year 2021 guidance, the annual growth rate amounted to 29%. Now let's have a closer look into each divisions. Plastic & Devices: Revenues in Q1 amounted to EUR 155 million in Q1. Adjusted for negative FX effect, mainly U.S. dollar and Brazilian real, organic growth amounted to 3.0%. In the Plastic & Devices division, we saw strong revenue growth in our RTF syringe business. The positive divisional performance was, however, partially offset by phasing effects in our tooling business within the NPS. We expect accordingly somewhat higher revenues from tooling operations in Q2. The earnings development was impressive at Plastic & Devices in the first quarter. The adjusted EBITDA increased from EUR 31 million to EUR 34 million on the back of a better product mix. This hike represents an organic surge of 13% compared to last year's quarter. Consequently, the adjusted EBITDA margin climbed 210 basis points from 19.9% to 20.2%. Primary Packaging Glass: The Primary Packaging Glass division grew organically 3.2% against a strong comparison in last year's quarter. In addition, the Molded Glass Cosmetics business was adversely impacted by the ongoing lockdown. Within PPG, the revenue development was twofold. On the one hand, we had an outstanding double-digit revenue growth rate in tubular glass. On the other, molded glass mainly suffered in cosmetics. Tubular glass benefited from strong demand in high-value solutions, which doubled revenues in Q1, mainly Biologics, RTF, Elite and Elite RTF. Elite Glass and COVID-19 vials contributed by a mid-single-digit million figure each. In Molded Glass, the cosmetics business has been impacted by approximately EUR 4 million negatively. The adjusted EBITDA dropped to EUR 26 million in Q1 2021 and reached a margin of 18%. The adjusted EBITDA was mainly affected by 2 events. First, the furnace construction and the expansion of furnace capacities at our plant in Lohr, which has been originally planned for full year 2020 and had to be shifted into full year 2021 due to COVID-19. This impacted the adjusted EBITDA temporarily by around EUR 5 million. For Q2, Lohr is up and running again with even higher capacity. Second, furthermore, we had some headwinds from higher energy costs of around EUR 1 million. As in Q1 2020, positive support came from the insurance reimbursement in the low single-digit million euro range. The insurance compensation is caused by financial damages linked to the furnace leakage in the U.S. in 2019. It is mainly associated to lost business representing revenues of around EUR 4 million in Q1 2021. Advanced Technologies: Revenue increased to EUR 2 million in Q1 2021 and was in line with our expectation. Further, adjusted EBITDA loss in Q1 totaled minus EUR 3 million, also as planned. Please note that GAAP is not part of our full year 2021 and midterm guidance. With regards to GAAP, I would, as usual, like to highlight 3 main points. First, Advanced Technologies is an innovation driver by developing intelligent drug delivery systems and steered as a long-term investment case. And please remember, all the potential benefits of this division are excluded from our guidance. Sensile is financially a very promising call option for us. Second, moreover, we have changed our revenue model. Instead of getting reimbursed for development costs from PharmaCo, we prefer to get a higher portion of the revenues from our PharmaCo partners instead. In other words, we evolved from a contract developer for PharmaCo to a revenue-sharing partner of PharmaCo. Third, we are expecting first sales contributions from our micro pump for chronic heart failure treatment with SQ Innovation in the course of 2022 onwards. On the next slide, we show our group figures and the reconciliation from the reported to the adjusted figures for Q1 2021. Reported group revenues in Q1 2021 came in at EUR 303 million. Adjusted for FX, we achieved a strong organic revenue growth of 3.7% year-over-year. For the adjusted EBITDA in Q1, we even managed to achieve a stronger organic growth of 9.6% year-over-year to EUR 54 million. Following the stronger adjusted EBITDA increase compared to revenues, we've managed to strongly expand the adjusted EBITDA margin by 110 basis points to 17.9% as already indicated before. The bottom line was supported by a lower depreciation rate. The lower depreciation rate was mainly related to the review of useful lives of our assets and additionally benefited from positive phasing effects of our assets in construction. Let me conclude by noting that we had no material deviations with respect to our adjustment line. Key elements include purchase price adjustments and minor exceptional expenses mainly related to COVID-19. Let's turn to the cash flow. In addition to the pleasing revenue and adjusted EBITDA performance, we also showed strong improvement in free cash flow. In Q1 2021, the free cash flow improvement by EUR 90 million to minus EUR 59 million compared to the first quarter 2020. And this was achieved despite EUR 3 million higher net CapEx. Besides the higher EBITDA, our main lever for the strong development was a strict net working capital discipline. Side remark, we achieved this improvement without any additional factoring. On the back of Q1, we reduced our net financial debt to EUR 986 million compared to more than EUR 1 billion a year ago. This brings the financial leverage down to 3.2 versus 3.4x last year. As a reminder, the financial covenant for our revolving credit facility stands unchanged at 3.75x. This covenant gives us a solid financial headroom. As a summary, we got off to a good start in the new year with a pleasing profitability improvement and a solid organic revenue growth. We expect that the growth will even accelerate in Q2 2021 and that our high-value solutions take off. On this positive note, I now hand back to Dietmar.
Yes. Thank you, Bernd. Ladies and gentlemen, the transformation of our Gerresheimer is ongoing. We have set ambitious targets and are now consequently implementing projects, initiatives, measures in order to achieve these goals. We are on the right track and started our growth acceleration. I'm excited to see how the group of people in Gerresheimer, who participate and contribute to our mission, is steadily growing. The results are becoming visible and this is further increasing the dynamic and the momentum in the whole company, bringing evidence into our long-term guidance for high single-digit revenues growth or revenue growth from 2022 onwards. Let's look at the outlook. We are looking forward to a solid second quarter. Our core business is accelerating with growth visible in all segments of the business and over-proportional growth in high-value solution areas. In Plastics & Devices, we anticipate solid mid-single-digit growth with further double-digit growth rates in our syringe business. In PPG, we expect high single-digit revenues with major growth contribution in tubular glass. The furnace replacement in Lohr will be completed or is completed. We actually have already restarted the production. And this is all very positive. The running projects in Advanced Technologies are on track. The expansion of expertise is ongoing, key hires complete the team, the elaboration of further business opportunity is in full swing. To sum this up, we confirm our full year guidance and to our plan to deliver mid-single-digit revenue growth in 2021 for our core business with high single-digit growth in the midterm. For the adjusted EBITDA margin, we are guiding for 22% to 23% in the core business for 2021 and 23% in the midterm. We are striving for adjusted earnings per share growth of at least 10% per year. Ladies and gentlemen, the Gerresheimer journey has only just begun. And we are keen to keep on this path by accelerating our growth momentum. The whole team is working hard and is fully committed to bring out the best of Gerresheimer and to maintain sustainable growth. With that, I hand back to Carolin and look forward to your questions. Thank you.
Thank you both for you presentations. [Operator Instructions] The first question comes from Veronika Dubajova from Goldman Sachs.
I have kind of 3, please. One a little bit shorter term and one slightly bigger picture, but just looking at the guidance, Dietmar, you've given us for the second quarter. And thank you, it's really helpful. But just kind of trying to reconcile the mid-single-digit growth expectation you have for Plastics & Devices, with the fact that obviously, Q1 came in fairly -- at a fairly underwhelming 3%. And then the comparison base is pretty difficult for the second quarter. So if you can kind of help us understand what drives that comp-adjusted growth acceleration as you move into the second quarter and your degree of confidence in that mid-single-digit growth expectation, that would be really helpful? And I'll let you answer that, and then I'll ask my bigger picture question, if that's okay, after that.
Yes. From my point of view, you can stay cool here. Sales are good. We had some timely shift of some tooling business from the first into the second quarter. You cannot plan this month by month. And I'm pretty cool, the figures will look very promising in the next quarters.
Okay. Okay. And then my sort of second question, kind of bigger picture, obviously, and you've alluded to this a lot throughout your prepared remarks. Obviously, your ambition as a company is to really shift into some of the higher growth, higher margin, higher barrier entry segments of the business. And I ask you this question every quarter, so I'm going to ask again. But can you maybe highlight some of the progress you've made through the quarter in terms of new relationships, new customers? And I think you've alluded to the order book filling very well. So I'd just love to understand where that interest is coming from.
Yes. As a matter of fact, it's not only the quarter, but it's the last months that were very successful, yes. It's sometimes hard if you mentioned this, but COVID really accelerated our access to new business opportunities, and it's not only the vials. It's really the opening of the doors into some of the customers and new opportunities and there are, of course, a couple of other examples, the Biologics that are running extremely well. But it's also new opportunities you might not think about in COVID. Take the -- all these diagnostic areas, where we have a lot of discussions, several projects we are discussing with our customers with nice opportunities, by the way, in Plastics & Devices. We have new opportunities for the syringes, small lot size syringes, but on the new lines in Wackersdorf with special syringe solutions that are attractive from the margins. It's not every project is a huge one, but sum of the different projects makes it very attractive. So we are -- you don't see the figures, Veronika, but it's a total different situation compared to my call after the first quarter last year, and it honestly spoken now.
Maybe just -- Veronika, just to add on what Dietmar just said regarding the growth for the upcoming 9 months. I mean, we see the same momentum for high-value products like you have seen this now in Q1, maybe with a growth of around 30% for high-value products. For Biologics, we have also a strong growth pattern for the next upcoming months. And as mentioned by Dietmar, the order book is really full, and we have a very, as you know, a very precise, very good forecast accuracy. So with this spirit, we are really in an excellent mood here in Düsseldorf, yes.
Next question comes from Odysseas Manesiotis from Berenberg.
I'm here on behalf of Scott Bardo, I have 3 questions, please. First of all, given that the cosmetics drag seems to have annualized, are you seeing any signs that this business will start turning into a tailwind to group figures from the coming quarter? And also, if possible, could you remind us how this business's profitability compares to the EBITDA margins at the group level? Second question on high-value solutions, could you share some more detail on which parts you're growing above your expectations here and why? And thirdly, could you also give us some more color on Sensile AG is filing for heart failure, please?
Maybe just to start with the question regarding the cosmetics, if I may. The last year, we had now in the upcoming months, you're totally right, we were already, let's say, we had already headwinds in cosmetics business molded in the last year. So we ended in Q2, Q3, Q4 with around EUR 125 million in Molded Glass. And this is a benchmark. We think that we will really be better than the EUR 125 million. Maybe we came out with EUR 135 million, something like this ballpark amount. But indeed, given this lower jump-off point of the last year, we think that we can really do -- we really think we can do better.
Yes, I think the release we had, for a certain time last year showed that if the lockdown is opening, the business is coming back very fast in the cosmetics and that's what we see. We don't plan this very strongly at the moment, at least not for the next months. Because I think the lockdown will still go on for some time. But if we see this in the second half of the year, it will definitely also help here. And you also asked towards the margins and the margin, I think, are fully in line with the margins we have in the average business of Gerresheimer. So they are usually pretty good actually. Yes, you asked the second question, the high-value solutions, where are we actually growing. The high-value solutions, there's no doubt, we are growing in the syringes areas, ready-to-fill syringes. It's unchanged to what I said last time. Every syringe we can produce, we are easily able to sell, and we could sell at least 15%, 20% more syringes if you would have the capacity, which we are adding, but it takes quite some time to add syringe capacity here. Very strong, we are in the Elite Glass. We have significantly wins and also first deliveries. It's in principle, even more than the corporate vials that we are shipping in the U.S. We did win further customers now with Elite because if you have the first one, they are convinced about the stability and the added value it brings to the production processes. So that's very good. It's even ready-to-fill Elite Glass that we are shipping. It's ready-to-fill vials that we are shipping in an increasing amount. And this is something we will definitely see also in the next months, quarters and years to come. It's very clearly the stronger positioning towards Biologics market that is helping here because that's -- it's one of the areas where you use classic high-value products. The last question was towards the heart failure. It's Sensile. It's probably the project with SQ Innovation. This is in the clinical studies that are ongoing and it's on plan. The project is on plan. And if things go on like this, which we all hope, there is a good chance that we really see the first sales in '22 and latest in '23, significant sales in this project that has unchanged our expectation. I hope this answers your questions.
Are there any further questions? If this is not -- I can see Veronika again. Veronika, please go ahead.
Sorry, I was on mute. That will teach me. If I could -- just a couple of very quick kind of financial questions, I guess, if that's all right. One, energy prices and just broader kind of cost inflation. We're seeing a lot of signs of this elsewhere in terms of freight cost, in terms of energy prices. It just would be really helpful, Bernd, if you could give us a mark-to-market on where you are as you look at the remainder of the year? And again, just remind us what proportion of this you can pass through to your customers versus not?
Thank you, Veronika. Basically, it's an estimate now, but I think compared to the previous year, we have probably EUR 6 million, EUR 7 million higher energy costs based on the best estimates what we have now regarding the future energy price development. And probably a part we have actually hedged and a part that we can basically transfer to the customer. So maybe we will end up per quarter net, which maybe EUR 1 million additional EBITDA burden what we really can somehow manage. But there's a lot of volatility, obviously, in the numbers. Another topic is regarding the raise in prices. What you will see here, and this is especially valid for our Centor operation that here, we have contracts which are mainly passing the raise in price increases to our customers, at least 50%, 60%, and this should help us also in the top line at least.
Okay. That's helpful. And then my other question was just on kind of COVID-19 vial opportunity. And I think last time we talked, you alluded to you were looking potentially at some ready-to-fill solutions as well for COVID-19 vials. Just curious if you have an update on the progress there? And if this is something that might maybe be more of a midterm upside for your business as you think about the COVID-19 direct -- not direct, but sustainability of those revenues, I guess?
Yes. The COVID-19 vials are on plan. We actually have much more orders than we have capacity. So it's -- that looks very good. Ready-to-fill vials, we probably -- it's unlikely that they will be used for COVID as this is all high volume and the filling capacity is the bottleneck actually, and that's why there will not be any ready-to-fill vials as mass vials here that will be used. Maybe to the raise in prices because Bernd mentioned it, it's important for Centor. It is as important, of course, for all the plastic business. And here, it's -- in German, you would say, real situation that the cost increases leads to a tailwind for us because we can really pass through the prices very successfully here. And actually, with the higher prices, you have an increase on the top line. So it's a certain amount of tailwind that is coming from this aspect.
Now we have Daniel Wendorff from Commerzbank.
I have 2 on high-value solutions. Can you talk a bit more about the revenue contribution you already achieved with this high-value solution product? And when you think of the main contributors for growth, what other contributors to growth do you see that really over the next 1, 2 years beyond really Elite Glass, RTF vials and RTF syringes? That would be my first question. And the second question would be on RTF syringes and RTF vials. How do you see your capacities develop over the next 1 to 2 years for these 2 product categories? And then my last question is, and sorry if I missed that in your presentation, and the line was not really good for 1 or 2 minutes. Your technical competence center in China, and what should come out of that over the next 2 to 3 years, so deals and products, et cetera?
Maybe -- Daniel, maybe I start with the -- take the first question regarding the high-value products. Actually, we had last year, EUR 36 million in high-value products and increased this by EUR 40 million to EUR 50 million in Q1 '21. And as mentioned before, for the remainder of the year, we see also on the back of EUR 142 million, a growth of 30%. So really somehow a very strong growth for the whole high-value product segment, what we have. What is really behind it is actually syringes. It's actually ready-to-fill vials. So all these innovative products what we have, which are really contributing to this and also our franchise as far as our biological customers are concerned, that's really what is really sustainably and consistently contributing to our growth now in the last couple of quarters and which really makes a difference from old Gerresheimer to new Gerresheimer. For example, a good showcase is Elite Glass. I mean when we talk about EUR 5 million, EUR 6 million contribution in Q1. Last year, we didn't -- we had 0 Elite Glass revenues. And in Q1 this year, we have EUR 6 million, and this really makes a difference. Innovation is something what is new for Gerresheimer, and we really make it happen.
Yes, the Elite Glass opportunities, we only started in the fourth quarter last year because that was when the processes were switched. And the ready-to-fill also the capacities for vials will be increased significantly. I will not disclose the details, but we will not only do this in Europe, but also in further regions like NAFTA, where we're doing it at the moment and also in Asia. And maybe this fits very well to the question concerning the technical competence centers. Maybe I have to repeat what this is, competence center is where you concentrate competence on the one side, but you also make competence locally available within our Asia strategy. For example, it became very clear that you can't be successful to run this business out of Europe or out of the U.S. You have to have local competencies with local experts talking to the local customers. And that's what we are doing at the moment, bundling the competence, it's not only China, by the way, we will also add another competence center in India in the next years. And that will definitely help us. And it is part of a total strategy. But I can only give you a ballpark. You can expect that in the next years, we will more or less 3 double or maybe even 4 double the sales in the region Asia. And technical competence center is one of the pillars that we are using in order to do so. The other aspect is always also the increase of local capacities. But you need competences capacities, strengthen the footprint, then you have the access to the customer and then the sales is moving ahead.
Next question comes from Oliver Reinberg from Kepler.
Three, if I may. First, on the organic growth. It's encouraging to see a certain acceleration there. But if I may push you a bit, I mean, the comparison base is not too demanding. You had a kind of 2% organic sales decline in Q1 last year. So I understand that there's a 1% headwind from cosmetics sales, which is fair. On the other side, there was obviously some kind of COVID-related demand. So after this kind of big investments we already have seen in the past, why isn't more growth coming through? And can you highlight any kind of potential areas of weakness you've seen in the first quarter? That would be the first question. Secondly, on the other operating income, that was actually up from EUR 5 million last year to EUR 7 million this year. I think it's nothing that you also adjusted for. So can you just talk about what was driving this? And then lastly, my takeaway from the Capital Markets Day was that you're quite dynamic in terms of discussion about potential future contracts also in the contract manufacturing business. So you have the auto inhaler. Can you just update us on any kind of potentially new contract outlooks in this area and probably also for Centor?
Thank you, Oliver. Maybe I'll take your first question regarding the organic growth in Q1. Indeed, we had a 3.7% organic growth for the full group. You need to see that we had headwinds for molded glass cosmetics of around EUR 3 million. So if you actually take this into consideration and to take out cosmetics molded glass, then you are already with 5% to 6% organic growth. And then you had the phasing effect of our tooling business. And I think this is also something worth mentioning because we think and we know it that in Q2, we will be EUR 3 million better as far as our tooling business is concerned in Q2 and in the end. If you take this under consideration, I think we would have also a pretty good quarter. By the way, what is important now is the acceleration of Q2. And here, we see that we will be growing above 5 percentage points, and we are very comfortable on this. The second question...
Sorry, can I just ask, Bernd. You had EUR 4 million from cosmetics and what were the other EUR 3 million?
Basically, it's the tooling business. Also, we have around 10 -- basically, big picture now, if I recall this correctly, we have around EUR 10 million tooling -- EUR 11 million tooling business in Q1 2021. It was a little bit lower than previous year quarter. And we think that it will be EUR 3 million higher in Q1 as in Q2 '21, this was a tooling piece. And you should not forget that we rebuild the furnace in Lohr. And as far as you're talking about say, as far as EBITDA is concerned, this topic of Lohr is the topic for the EBITDA of EUR 5 million. But your question, I think, was referring to our organic growth. The other topic is other income. That since the end of the day, a bunch of items included there, what makes the difference? I think if I'm not wrong, we had to explain EUR 5 million additional other income. EUR 1.5 million is -- actually, EUR 1 million to EUR 2 million is the sale of our leasehold land. It's quite interesting. We actually sold our -- a little bit our heritage, where we -- our company exists 150 years almost and we sold old ground here in Düsseldorf for around EUR 1 million to EUR 2 million resources and really focused on our core business. It was insurance compensation, which is a little bit higher than previous year. And we have also FX effect, which needs to be included, and that's actually the topics in other income. What is very important in this context, in the earnings quality point of view is, Oliver, I think, this EUR 5 million bucket, what just Dietmar mentioned, because as far as the earnings are concerned, with our reconstruction of our furnace in Q1, we lost in comparison to Q1 2020, almost EUR 5 million EBITDA. Good news is now -- and this was planned. Good news is now that we actually have now a new furnace there rebuild with a higher capacity even. And this is starting now in Q2 as planned. And overall, I can expect that with this new furnace, we could be able to increase even our sales each quarter by EUR 1 million to EUR 2 million revenues. So basically, really good news on this one, and it also shows that you have to see the EBITDA on a temporary basis impact what we had now in Q1. With this, I don't know, Dietmar, regarding the contract situation, whether you want to mention something to this?
Thank you, Bernd. I'll take the last point here with the -- you're asking about the order intake, especially in the contract manufacturing. Yes, we've been very successful here. It's mainly in the areas of pen/auto-injectors where we have key orders in. That is also an explanation for some of the CapEx plannings that we guided into these CapEx you have to do immediately, but the sales is only starting some months or even years later. That's the nature of the contract manufacturing. But we are very well underway in other aspects where we also, since the Capital Markets Day, has been further successful is in the area of diagnostics. I indicated this before, and especially in the area of special syringes, where we also are very well underway. So it's really order books are filling very nicely, and this gives us a certain confidence into the guidance that we gave for the following years.
Perfect. And can you just discuss it any kind of ongoing discussions for any kind of potential new contract development mandates or anything on Centor?
Yes, but I cannot disclose details here on the customers because that's by the nature of the business, I can't do. But we are talking to other customers not only in the products for small molecules, but also with new devices for large molecule opportunities.
Now we have Odysseas again from Berenberg.
Just one quick one. You mentioned that you are moving from contract development to a revenue-sharing model in some parts of your business. Could you please share in which exact areas of your contract development business you'll be doing that? And how are you thinking around the revenue contributions here going forward, as in how will it differ from previously?
Yes, you have to see where we come from, yes. When we acquired Sensor, most of the contracts they had were based on, we develop a product for you, you reimburse up for the development work, we are reimbursed for this. It's like sales, like engineering office and then it's your IP and then we produce the product ideally in Sensor, it was not even planned to produce it, and that's it. Now it's quite different. We are the full owner of the IP. We have developed the products with our engineering work, and we are selling the product, including the IP to the customer, which in the end leads to the fact that you are selling a product with a certain margin, which is nice. But you're also, and here now it becomes attractive, you get a kind of license fee, call it license fee or portion of the sales, for example, for your product. And that, of course, makes the business very attractive. That's why we are so eager to see the first sales of, for example, the Sensor business because it will not only push us on the top line, but it will definitely also change and contribute very strongly on the bottom line as well because the margin will be very attractive. And that is the model we are now using for this project, but for the projects to come as well.
As there are no further questions, we would like to thank you for joining us today. Please note, we are going to publish our Q2 results on July 13. All the best and stay healthy. Bye-Bye.
Thank you.
Thank you.
Ladies and gentlemen, thank you for your attendance. This call has been concluded. You may disconnect.