Aptar Reports Second Quarter 2022 Results

Rhea-AI Summary

AptarGroup, Inc. (NYSE: ATR) reported a 15% increase in net income to $64 million for the second quarter of 2022, alongside 4% sales growth totaling $845 million. Core sales also rose 10%. Key growth drivers included robust Pharma and Beauty + Home segments, with core sales up 12% and 10%, respectively. Adjusted EPS climbed 13% to $0.96. The company faces challenges from inflation and currency fluctuations but remains optimistic about future performance, expecting EPS between $0.90 and $1.00 for Q3.

Positive

• Net income increased 15% to $64 million.
• Sales grew 4% to $845 million, with core sales rising 10%.
• Segment growth: Pharma +12%, Beauty + Home +10%.
• Adjusted EBITDA increased 8% to $160 million.
• EPS rose 17% to $0.95; adjusted EPS increased 13% to $0.96.
• Strong recovery in key markets post-pandemic.

Negative

• Reported earnings per share decreased 8% year-to-date.
• Ongoing concerns regarding inflation and supply chain disruptions.
• Currency exchange rate impacts likely to affect earnings.

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)-- AptarGroup, Inc. (NYSE:ATR), a global leader in drug delivery, consumer product dispensing and active material science solutions and services, today reported net income of $64 million for the quarter ended June 30, 2022, a 15% increase over the prior year. Reported sales grew 4% and core sales increased by 10% over the prior year.

Photo: Aptar

“Aptar delivered a strong quarter, remaining resilient while navigating a very dynamic and uncertain environment. As we look to the year ahead, we will remain focused on pricing initiatives to help offset continued rising input costs, managing our expenses and prudently allocating our capital by investing in services and product lines that drive shareholder return over the long term,” said Stephan B. Tanda, President and CEO, Aptar.

Second Quarter 2022 Summary

• Reported sales grew 4% and net income increased 15% to $64 million
• Core sales increased 10% and adjusted EBITDA increased 8% to $160 million
• Reported earnings per share increased 17% to $0.95 compared to $0.81 in the prior year
• Adjusted earnings per share increased 13% to $0.96 compared to $0.85 in the prior year (including comparable exchange rates)
• Each segment achieved sales growth through improved volume as well as increased pricing, with Pharma and Beauty + Home segments reaching double-digit core sales growth

Second Quarter Results

For the quarter ended June 30, 2022, reported sales increased 4% to $845 million compared to $811 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 10%.

Second Quarter Segment Sales Analysis (Change Over Prior Year)
	Pharma	Beauty + Home	Food + Beverage	Total AptarGroup
Core Sales Growth	12%	10%	8%	10%
Acquisitions	1%	0%	0%	0%
Currency Effects (1)	(8%)	(7%)	(2%)	(6%)
Total Reported Sales Growth	5%	3%	6%	4%
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

Aptar’s Pharma segment achieved double-digit core sales growth due to increased volumes across each end market. Demand for nasal devices for allergic rhinitis treatments, emergency medicines and decongestants principally drove the growth in the prescription drug and consumer health care markets. Sales of Aptar’s elastomer components for injected medicines remained strong across multiple uses, including biologics.

Aptar’s Beauty + Home segment grew through pricing initiatives as well as increased volume in the beauty and personal care markets. Several categories previously under pressure due to the pandemic showed recovery during the quarter, including fragrance, facial skincare, haircare and sunscreens.

Growth in Aptar’s Food + Beverage segment was driven primarily by pricing, with volumes in the food market softening, especially in North America, after a period of strong growth. Volumes in the beverage market increased as demand recovered in the quarter.

Aptar reported second quarter earnings per share of $0.95, an increase of 17%, compared to $0.81 during the same period a year ago. Second quarter adjusted earnings per share, excluding restructuring charges, acquisition costs and the unrealized loss on an equity investment, were $0.96, an increase of 13%, compared to $0.85 in the prior year, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 25% (approximately $0.04 cents per share impact compared to the current period effective tax rate of 29%).

Year-to-Date Results

For the six months ended June 30, 2022, reported sales increased 6% to $1.69 billion compared to $1.59 billion in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 11%.

Six Months Year-To-Date Segment Sales Analysis (Change Over Prior Year)
	Pharma	Beauty + Home	Food + Beverage	Total AptarGroup
Core Sales Growth	13%	10%	13%	11%
Acquisitions	1%	0%	0%	0%
Currency Effects (1)	(7)%	(5)%	(2)%	(5)%
Total Reported Sales Growth	7%	5%	11%	6%
(1) - Currency effects are approximated by translating last year's amounts at this year's foreign exchange rates.

For the six months ended June 30, 2022, Aptar’s reported earnings per share were $1.88, a decrease of 8%, compared to $2.05 reported a year ago. Current year adjusted earnings per share, excluding restructuring charges, acquisition costs and the unrealized gains or losses on an equity investment, were $1.92 and increased 2% from prior year adjusted earnings per share of $1.89, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 20% (approximately $0.19 cents per share impact compared to current period effective tax rate of 28%).

Outlook

Regarding Aptar’s third quarter outlook, Tanda stated, “We are recovering nicely in the critical markets that had previously been impacted by the pandemic, including our Pharma segment’s prescription drug and consumer health care markets which are expected to continue strong momentum in the coming quarter. At the same time, we are operating in an uncertain environment, which continues to be affected by rising inflation, the ongoing war in Ukraine, supply chain disruptions, and a very tight U.S. labor market. In addition, the stronger dollar is expected to continue to have an impact on our results. We believe we are well positioned to navigate a potential economic downturn due to the strength of our balance sheet, our disciplined approach to capital management and our broad portfolio of innovative solutions that serve multiple essential markets.”

Aptar expects earnings per share for the third quarter of 2022, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $0.90 to $1.00. This guidance is based on an effective tax rate range of 28% to 30% which compares to an effective tax rate of 28% on prior year adjusted earnings. The midpoint of this guidance range represents a 10% increase over the prior year third quarter adjusted earnings per share when currency translation effects are equalized. The earnings per share guidance range was based on a Euro/US$ exchange rate of 1.02 and the spot rates at the end of June for all other currencies. Our currency exchange rate assumptions equate to an approximately $0.08 per share headwind when compared to the prior year third quarter earnings.

Cash Dividends and Share Repurchases

As previously announced, Aptar’s Board of Directors declared a quarterly cash dividend of $0.38 per share. The payment date is August 17, 2022, to stockholders of record as of July 27, 2022. During the second quarter, Aptar repurchased 348 thousand shares for approximately $37 million, leaving $147 million authorized for common stock repurchases at the end of the second quarter. Aptar may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions.

Open Conference Call

There will be a conference call held on Friday, July 29, 2022 at 8:00 a.m. Central Time to discuss the Company’s second quarter results for 2022. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations page at www.aptar.com. Replay of the conference call can also be accessed for a limited time on the Investor Relations page of the website.

About Aptar

Aptar is a global leader in the design and manufacturing of a broad range of drug delivery, consumer product dispensing and active material science solutions and services. Aptar’s innovative solutions and services serve a variety of end markets including pharmaceutical, beauty, personal care, home care, food and beverage. Using insights, proprietary design, engineering and science to create dispensing, dosing and protective technologies for many of the world’s leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has 13,000 dedicated employees in 20 countries. For more information, visit www.aptar.com.

Presentation of Non-GAAP Information

This press release refers to certain non-GAAP financial measures, including current year adjusted earnings per share and adjusted EBITDA, which exclude the impact of business transformation charges (restructuring initiatives), acquisition-related costs, certain purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities. Core sales and adjusted earnings per share also neutralize the impact of foreign currency translation effects when comparing current results to the prior year. Non-GAAP financial measures may not be comparable to similarly titled non-GAAP financial measures provided by other companies. Aptar’s management believes these non-GAAP financial measures provide useful information to our investors because they allow for a better period over period comparison of operating results by removing the impact of items that, in management’s view, do not reflect Aptar’s core operating performance. These non-GAAP financial measures also provide investors with certain information used by Aptar’s management when making financial and operational decisions. Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures. We use free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives. These non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial results but should be read in conjunction with the unaudited condensed consolidated statements of income and other information presented herein. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP measures is included in the accompanying tables. Our outlook is provided on a non-GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of the Company's routine activities, such as restructuring and acquisition costs.

This press release contains forward-looking statements, including certain statements set forth under the “Outlook” section of this press release. Words such as “expects,” “anticipates,” “believes,” “estimates,” “future,” “potential,” “continues” and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs as well as assumptions made by and information currently available to us. Accordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to: geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising energy costs and certain supply chain disruptions; the impact of COVID-19 and its variants on our global supply chain and our global customers, employees and operations, which has elevated and will continue to elevate many of the risks and uncertainties discussed below; economic conditions worldwide, including inflationary conditions in the U.S. and potential deflationary or inflationary conditions in other regions we rely on for growth; the availability of direct labor workers and the increase in direct labor costs, especially in North America; our ability to preserve organizational culture and maintain employee productivity in the work-from-home environment caused by the current pandemic; the availability of raw materials and components (particularly from sole sourced suppliers) as well as the financial viability of these suppliers; fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs); significant fluctuations in foreign currency exchange rates or our effective tax rate; the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; financial conditions of customers and suppliers; consolidations within our customer or supplier bases; changes in customer and/or consumer spending levels; loss of one or more key accounts; our ability to successfully implement facility expansions and new facility projects; our ability to offset inflationary impacts with cost containment, productivity initiatives or price increases; changes in capital availability or cost, including interest rate fluctuations; volatility of global credit markets; our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired, including contingent consideration valuation; our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; direct or indirect consequences of acts of war, terrorism or social unrest; cybersecurity threats that could impact our networks and reporting systems; the impact of natural disasters and other weather-related occurrences; fiscal and monetary policies and other regulations; changes or difficulties in complying with government regulation; changing regulations or market conditions regarding environmental sustainability; work stoppages due to labor disputes; competition, including technological advances; our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; the outcome of any legal proceeding that has been or may be instituted against us and others; our ability to meet future cash flow estimates to support our goodwill impairment testing; the demand for existing and new products; the success of our customers’ products, particularly in the pharmaceutical industry; our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; difficulties in product development and uncertainties related to the timing or outcome of product development; significant product liability claims; and other risks associated with our operations.. For additional information on these and other risks and uncertainties, please see our filings with the Securities and Exchange Commission, including the discussion under “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Form 10-K and Form 10-Qs. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

AptarGroup, Inc. Condensed Consolidated Financial Statements (Unaudited) (In Thousands, Except Per Share Data) Consolidated Statements of Income
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
Net Sales	$	844,543			$	811,032			$	1,689,475			$	1,587,786
Cost of Sales (exclusive of depreciation and amortization shown below)		549,010				523,050				1,091,738				1,011,755
Selling, Research & Development and Administrative		135,382				140,913				280,923				275,261
Depreciation and Amortization		58,552				57,790				117,217				115,228
Restructuring Initiatives		428				4,876				719				8,548
Operating Income		101,171				84,403				198,878				176,994
Other Income (Expense):
Interest Expense		(11,982	)			(7,175	)			(20,912	)			(14,590	)
Interest Income		989				624				1,277				1,005
Net Investment (Loss) Gain		(483	)			(1,611	)			(1,733	)			15,198
Equity in Results of Affiliates		(276	)			81				(362	)			(434	)
Miscellaneous, net		52				(2,028	)			(1,051	)			(2,991	)
Income before Income Taxes		89,471				74,294				176,097				175,182
Provision for Income Taxes		25,858				19,020				50,113				35,969
Net Income	$	63,613			$	55,274			$	125,984			$	139,213
Net Loss Attributable to Noncontrolling Interests		12				2				64				15
Net Income Attributable to AptarGroup, Inc.	$	63,625			$	55,276			$	126,048			$	139,228
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic	$	0.97			$	0.84			$	1.92			$	2.12
Diluted	$	0.95			$	0.81			$	1.88			$	2.05
Average Numbers of Shares Outstanding:
Basic		65,475				65,818				65,509				65,525
Diluted		66,900				68,086				66,969				67,869

AptarGroup, Inc. Condensed Consolidated Financial Statements (Unaudited) (continued) ($ In Thousands) Consolidated Balance Sheets
	June 30, 2022			December 31, 2021
ASSETS
Cash and Equivalents	$	240,474		$	122,925
Short-term Investments		—			740
Total Cash and Equivalents, and Short-term Investments		240,474			123,665
Accounts and Notes Receivable, Net		703,000			671,350
Inventories		470,600			441,464
Prepaid and Other Current Assets		144,567			121,729
Total Current Assets		1,558,641			1,358,208
Property, Plant and Equipment, Net		1,256,992			1,275,877
Goodwill		936,107			974,157
Other Assets		506,370			533,122
Total Assets	$	4,258,110		$	4,141,364
LIABILITIES AND EQUITY
Short-Term Obligations	$	70,286		$	289,627
Accounts Payable, Accrued and Other Liabilities		751,746			692,865
Total Current Liabilities		822,032			982,492
Long-Term Obligations		1,271,752			907,024
Deferred Liabilities and Other		215,862			267,248
Total Liabilities		2,309,646			2,156,764
AptarGroup, Inc. Stockholders' Equity		1,934,111			1,969,407
Noncontrolling Interests in Subsidiaries		14,353			15,193
Total Equity		1,948,464			1,984,600
Total Liabilities and Equity	$	4,258,110		$	4,141,364

AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands)
	Three Months Ended June 30, 2022
	Consolidated					Pharma				Beauty + Home				Food + Beverage				Corporate & Other				Net Interest
Net Sales	$	844,543				$	340,231			$	371,346			$	132,966			$	—			$	—
Reported net income	$	63,613
Reported income taxes		25,858
Reported income before income taxes		89,471					87,445				21,053				7,594				(15,628	)			(10,993	)
Adjustments:
Restructuring initiatives		428					—				420				8				—
Net unrealized investment loss		483					—				—				—				483
Adjusted earnings before income taxes		90,382					87,445				21,473				7,602				(15,145	)			(10,993	)
Interest expense		11,982																					11,982
Interest income		(989	)																				(989	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)		101,375					87,445				21,473				7,602				(15,145	)			—
Depreciation and amortization		58,552					23,561				23,406				10,103				1,482
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	159,927				$	111,006			$	44,879			$	17,705			$	(13,663	)		$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)		18.9	%				32.6	%			12.1	%			13.3	%

	Three Months Ended June 30, 2021
	Consolidated					Pharma				Beauty + Home				Food + Beverage				Corporate & Other				Net Interest
Net Sales	$	811,032				$	325,343			$	360,246			$	125,443			$	—			$	—
Reported net income	$	55,274
Reported income taxes		19,020
Reported income before income taxes		74,294					81,806				12,122				9,691				(22,774	)			(6,551	)
Adjustments:
Restructuring initiatives		4,876					38				1,457				117				3,264
Net unrealized investment loss		1,611					—				—				—				1,611
Transaction costs related to acquisitions		2,434					2,434				—				—				—
Adjusted earnings before income taxes		83,215					84,278				13,579				9,808				(17,899	)			(6,551	)
Interest expense		7,175																					7,175
Interest income		(624	)																				(624	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)		89,766					84,278				13,579				9,808				(17,899	)			—
Depreciation and amortization		57,790					21,701				24,331				9,818				1,940
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	147,556				$	105,979			$	37,910			$	19,626			$	(15,959	)		$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)		18.2	%				32.6	%			10.5	%			15.6	%

AptarGroup, Inc. Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited) ($ In Thousands)
	Six Months Ended June 30, 2022
	Consolidated					Pharma				Beauty + Home				Food + Beverage				Corporate & Other				Net Interest
Net Sales	$	1,689,475				$	682,693			$	739,545			$	267,237			$	—			$	—
Reported net income	$	125,984
Reported income taxes		50,113
Reported income before income taxes		176,097					179,651				36,734				16,567				(37,220	)			(19,635	)
Adjustments:
Restructuring initiatives		719					—				678				41				—
Net unrealized investment loss		2,574					—				—				—				2,574
Adjusted earnings before income taxes		179,390					179,651				37,412				16,608				(34,646	)			(19,635	)
Interest expense		20,912																					20,912
Interest income		(1,277	)																				(1,277	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)		199,025					179,651				37,412				16,608				(34,646	)			—
Depreciation and amortization		117,217					46,907				46,965				20,332				3,013
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	316,242				$	226,558			$	84,377			$	36,940			$	(31,633	)		$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)		18.7	%				33.2	%			11.4	%			13.8	%

	Six Months Ended June 30, 2021
	Consolidated					Pharma				Beauty + Home				Food + Beverage				Corporate & Other				Net Interest
Net Sales	$	1,587,786				$	639,175			$	707,192			$	241,419			$	—			$	—
Reported net income	$	139,213
Reported income taxes		35,969
Reported income before income taxes		175,182					169,476				21,810				19,701				(22,220	)			(13,585	)
Adjustments:
Restructuring initiatives		8,548					73				2,553				38				5,884
Net unrealized investment gain		(15,198	)				—				—				—				(15,198	)
Transaction costs related to acquisitions		2,434					2,434				—				—				—
Adjusted earnings before income taxes		170,966					171,983				24,363				19,739				(31,534	)			(13,585	)
Interest expense		14,590																					14,590
Interest income		(1,005	)																				(1,005	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)		184,551					171,983				24,363				19,739				(31,534	)			—
Depreciation and amortization		115,228					42,480				48,903				19,877				3,968				—
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	299,779				$	214,463			$	73,266			$	39,616			$	(27,566	)		$	—
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)		18.9	%				33.6	%			10.4	%			16.4	%

AptarGroup, Inc. Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data)
	Three Months Ended June 30,							Six Months Ended June 30,
	2022			2021				2022			2021
Income before Income Taxes	$	89,471		$	74,294			$	176,097		$	175,182
Adjustments:
Restructuring initiatives		428			4,876				719			8,548
Net unrealized investment loss (gain)		483			1,611				2,574			(15,198	)
Transaction costs related to acquisitions		—			2,434				—			2,434
Foreign currency effects (1)					(5,983	)						(9,657	)
Adjusted Earnings before Income Taxes	$	90,382		$	77,232			$	179,390		$	161,309
Provision for Income Taxes	$	25,858		$	19,020			$	50,113		$	35,969
Adjustments:
Restructuring initiatives		111			1,144				188			1,985
Net unrealized investment loss (gain)		119			370				631			(3,496	)
Transaction costs related to acquisitions		—			442				—			442
Foreign currency effects (1)					(1,532	)						(1,982	)
Adjusted Provision for Income Taxes	$	26,088		$	19,444			$	50,932		$	32,918
Net Income Attributable to Noncontrolling Interests	$	12		$	2			$	64		$	15
Net Income Attributable to AptarGroup, Inc.	$	63,625		$	55,276			$	126,048		$	139,228
Adjustments:
Restructuring initiatives		317			3,732				531			6,563
Net unrealized investment loss (gain)		364			1,241				1,943			(11,702	)
Transaction costs related to acquisitions		—			1,992				—			1,992
Foreign currency effects (1)					(4,451	)						(7,675	)
Adjusted Net Income Attributable to AptarGroup, Inc.	$	64,306		$	57,790			$	128,522		$	128,406
Average Number of Diluted Shares Outstanding		66,900			68,086				66,969			67,869
Net Income Attributable to AptarGroup, Inc. Per Diluted Share	$	0.95		$	0.81			$	1.88		$	2.05
Adjustments:
Restructuring initiatives		—			0.05				0.01			0.10
Net unrealized investment loss (gain)		0.01			0.02				0.03			(0.17	)
Transaction costs related to acquisitions		—			0.03				—			0.03
Foreign currency effects (1)					(0.06	)						(0.12	)
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share	$	0.96		$	0.85			$	1.92		$	1.89
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using current period foreign currency exchange rates.

AptarGroup, Inc. Reconciliation of Free Cash Flow to Net Cash Provided by Operations (Unaudited) (In Thousands)
	Three Months Ended June 30,								Six Months Ended June 30,
	2022				2021				2022				2021
Net Cash Provided by Operations	$	84,577			$	103,396			$	176,654			$	175,581
Capital Expenditures		(74,204	)			(73,155	)			(147,262	)			(137,039	)
Proceeds from Government Grants		4,839				—				12,794				—
Free Cash Flow	$	15,212			$	30,241			$	42,186			$	38,542

AptarGroup, Inc. Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited) (In Thousands, Except Per Share Data)
	Three Months Ending September 30,
	Expected 2022		2021
Income before Income Taxes			$	66,234
Adjustments:
Restructuring initiatives				10,223
Net unrealized investment loss				9,021
Transaction costs related to acquisitions				1,793
Foreign currency effects (1)				(7,385	)
Adjusted Earnings before Income Taxes			$	79,886
Provision for Income Taxes			$	19,340
Adjustments:
Restructuring initiatives				2,351
Net unrealized investment loss				2,075
Transaction costs related to acquisitions				447
Foreign currency effects (1)				(2,156	)
Adjusted Provision for Income Taxes			$	22,057
Net Income Attributable to Noncontrolling Interests			$	366
Net Income Attributable to AptarGroup, Inc.			$	47,260
Adjustments:
Restructuring initiatives				7,872
Net unrealized investment loss				6,946
Transaction costs related to acquisitions				1,346
Foreign currency effects (1)				(5,229	)
Adjusted Net Income Attributable to AptarGroup, Inc.			$	58,195
Average Number of Diluted Shares Outstanding				67,801
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)			$	0.70
Adjustments:
Restructuring initiatives				0.12
Net unrealized investment loss				0.10
Transaction costs related to acquisitions				0.02
Foreign currency effects (1)				(0.08	)
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)	$0.90 - $1.00		$	0.86
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using a Euro/US$ exchange rate of 1.02 and the spot rates as of June 30, 2022 for all other applicable foreign currency exchange rates.
(2) AptarGroup’s expected earnings per share range for the third quarter of 2022, excluding any restructuring expenses, acquisition costs and changes in fair value of equity investments, is based on an effective tax rate range of 28% to 30%. This tax rate range compares to our third quarter of 2021 effective tax rate of 29% on reported and 28% on adjusted earnings per share.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220728005988/en/

Investor Relations Contacts:

Matt DellaMaria

matt.dellamaria@aptar.com

815-479-5530

Mary Skafidas

mary.skafidas@aptar.com

Media Contact:

Katie Reardon

katie.reardon@aptar.com

815-479-5671

Source: AptarGroup, Inc.

FAQ

What were Aptar's earnings for the second quarter of 2022?

Aptar reported a net income of $64 million for Q2 2022, a 15% increase over the previous year.

How did Aptar's core sales perform in Q2 2022?

Core sales increased by 10% in Q2 2022 compared to the prior year.

What is the earnings per share forecast for Aptar in Q3 2022?

Aptar expects earnings per share for Q3 2022 to be in the range of $0.90 to $1.00.

What challenges is Aptar facing according to the Q2 2022 report?

Aptar mentioned challenges from rising inflation, supply chain disruptions, and currency fluctuations.

When will Aptar's next conference call take place?

Aptar's conference call will be held on July 29, 2022, at 8:00 a.m. Central Time.