Gerresheimer: Bafin announces further balance sheet audits - BaFin deepens Gerresheimer probe over questionable financial reporting practices
Gerresheimer is under fresh scrutiny from Germany's financial regulator, BaFin. The watchdog has announced an expanded investigation into the company's financial reporting practices. This latest move follows earlier criticism of how the firm handled certain sales contracts.
BaFin had previously raised concerns about Gerresheimer's use of Bill-and-Hold agreements. These contracts allow goods to be invoiced before delivery, which can lead to revenue being recorded too early. Regulators warned that such practices might artificially boost the company's finance.
The new probe will extend beyond past issues. BaFin is now examining the period from 1 December 2024 to 31 May 2025, in addition to reviewing the 2023/24 business report. The decision to widen the investigation suggests deeper concerns about the company's accounting methods.
News of the expanded review triggered an immediate reaction from investors. Gerresheimer's share price dropped sharply in after-hours trading, reflecting growing uncertainty about the firm's financial transparency.
BaFin's extended investigation will cover a longer timeframe than initially planned. The regulator's focus remains on whether Gerresheimer's reporting practices comply with financial rules. The outcome could have significant implications for the company's future financial disclosures and investor confidence.
