Aptar Reports Second Quarter 2024 Results

Rhea-AI Summary

AptarGroup (NYSE:ATR) reported solid second quarter results for 2024, with reported sales increasing 2% and core sales growing 3%. The company's net income rose 9% to $90 million, driven by strong growth in proprietary drug delivery systems and margin improvement. Earnings per share increased 8% to $1.34, while adjusted EPS grew 12% to $1.37.

The Pharma segment led growth with a 6% increase in reported sales and 7% in core sales. Beauty and Closures segments saw slight declines. For the first six months of 2024, Aptar achieved double-digit earnings growth and strong net cash provided by operations. The company also increased its quarterly dividend by 10% to $0.45 per share.

Positive

• Reported sales increased 2% and core sales grew 3% in Q2 2024
• Net income rose 9% to $90 million
• Adjusted earnings per share increased 12% to $1.37
• Pharma segment reported 6% sales growth and 7% core sales growth
• Quarterly dividend increased by 10% to $0.45 per share
• Net cash provided by operations increased to $236 million for H1 2024
• Free cash flow increased to $92 million for H1 2024

Negative

• Beauty segment reported sales decreased 2% and core sales declined 1%
• Closures segment reported sales decreased 1% with flat core sales

Insights

Financial Analyst

AptarGroup's Q2 2024 results demonstrate solid performance with notable strengths in key areas. The 2% increase in reported sales and 3% growth in core sales indicate steady progress, particularly driven by the Pharma segment. The $90 million net income, representing a 9% year-over-year increase, reflects improved profitability.

The Pharma segment's 6% reported sales growth and 7% core sales growth highlight the continued demand for Aptar's proprietary drug delivery systems. This performance underscores the company's strong position in high-value medical technologies.

Margin improvement across segments, despite challenges in Beauty and Closures, showcases effective cost management and operational efficiency. The 12% increase in adjusted EPS to $1.37 is particularly impressive, outpacing revenue growth and indicating enhanced profitability.

The 10% dividend increase signals management's confidence in future cash flows. However, investors should note the modest share repurchases of $5 million, which might indicate a conservative approach to capital allocation.

Looking ahead, the Q3 2024 EPS guidance of $1.38 to $1.46 suggests continued growth, albeit with potential headwinds from currency exchange rates. The company's focus on high-growth areas like GLP-1 drug delivery components and CNS therapies positions it well for future expansion.

Market Research Analyst

Aptar's Q2 results reveal interesting market dynamics across its segments. The Pharma segment's robust performance, particularly in allergic rhinitis and CNS therapeutics, indicates growing demand in these medical fields. The normalization of Injectables sales after last year's ERP-related surge suggests a stabilizing supply chain.

In the consumer sector, Beauty's 2% sales decline, with a 1% core sales drop, points to ongoing challenges in this market. However, the progressive improvement in North American volumes is a positive sign, potentially indicating a gradual recovery in consumer spending on beauty products.

The Closures segment's flat core sales, despite increased volumes, highlight the impact of lower resin costs. This scenario underscores the importance of raw material price trends in the packaging industry and their effect on reported sales figures.

The return to growth in the Active Material Science division after a period of COVID-related destocking is noteworthy. It suggests a potential normalization in supply chain dynamics and inventory management practices across industries.

Aptar's outlook for continued growth in proprietary drug delivery systems, particularly for nasally delivered CNS drugs and allergy therapies, aligns with broader trends in pharmaceutical innovation and delivery methods. The mention of growing demand for elastomeric components used in GLP-1 products is particularly intriguing, given the current buzz around GLP-1 drugs in the medical and investment communities.

CRYSTAL LAKE, Ill.--(BUSINESS WIRE)-- AptarGroup, Inc. (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing and protection technologies, today reported solid second quarter results driven by continued growth of the company’s proprietary drug delivery systems and margin improvement. Reported sales increased by 2% and core sales, excluding currency and acquisition effects, increased by 3%. Aptar reported net income of $90 million for the quarter, a 9% increase from the prior year.

Photo: Aptar

“Strong sales growth in our Pharma business and broad-based margin expansion helped us achieve another quarter of strong earnings per share growth. Our proprietary drug delivery systems continue to see healthy demand, sales for our active material science technologies grew nicely in the quarter and volumes for consumer dispensing solutions continued to progressively improve in North America. For the first six months of the year, we achieved double-digit earnings growth and delivered strong net cash provided by operations,” said Stephan B. Tanda, Aptar President and CEO, commenting on the second quarter results.

Second Quarter 2024 Highlights

• Reported sales increased 2% and core sales increased 3%
• Reported earnings per share increased 8% to $1.34 and adjusted earnings per share increased 12% to $1.37
• Reported net income increased 9% to $90 million and adjusted EBITDA increased 6% from the prior year to $193 million
• Pharma segment delivered reported sales growth of 6% and core sales growth of 7% with continued demand for proprietary drug delivery systems
• Margins continued to improve over the prior year quarter, driven by sales of higher value products, and improved operational performance and cost management efforts
• Increased the quarterly dividend by approximately 10% to $0.45 per share

First Six Months 2024 Highlights

• Double-digit EPS growth over the prior year period
• Net cash provided by operations increased to $236 million compared to $182 million in the prior year period
• Free cash flow increased to $92 million compared to $27 million in the prior year

Second Quarter Results

For the quarter ended June 30, 2024, reported sales increased 2% to $910 million compared to $896 million in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 3%.

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

Aptar Pharma had an increase in reported sales of 6% and core sales of 7% over the prior year quarter. The segment’s strong performance was driven by continued growth for proprietary drug delivery systems used for allergic rhinitis, central nervous system therapeutics, emergency and pain medicines, as well as eye care and nasal decongestants. Sales declined in the Injectables division compared to the prior year quarter as sales normalized following last year’s strong second quarter catch up from the Enterprise Resource Planning (ERP) implementation in the first quarter of 2023. For the first six months of the year, the Injectables division grew 14%. The Active Material Science division returned to growth after a period of destocking due to COVID.

Aptar Beauty’s reported sales decreased 2%, and with currency effects core sales were down 1% compared to the prior year quarter. Volumes in the quarter grew over the prior year period as sales in North America continued to show progressive improvement, however, this was offset by higher tooling sales in the prior year period. Margins continued to improve year over year even with softer sales, due to operational performance and ongoing cost management.

Aptar Closures’ reported sales decreased 1% from the prior year quarter and the segment’s core sales were flat. Increased volumes were offset by the pass through of lower resin costs. Margins for Closures were flat over the prior year quarter as ongoing cost containment efforts and operational performance were offset by the timing of pass through of lower resin costs.

Aptar reported second quarter earnings per share of $1.34, an increase of 8%, compared to $1.24 during the same period a year ago. Second quarter adjusted earnings per share, excluding restructuring charges and the unrealized gains or losses on an equity investment, were $1.37, an increase of 12%, compared to $1.22 in the prior year, including comparable exchange rates.

Year-To-Date Results

For the six months ended June 30, 2024, reported sales increased 4% to $1.83 billion compared to $1.76 billion in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 4%.

Six Months Year-To-Date Segment Sales Analysis (Change Over Prior Year)
		Aptar Pharma	Aptar Beauty	Aptar Closures	Total AptarGroup
Total Reported Sales Growth		10%	(1)%	0%	4%
Currency Effects (1)		0%	0%	0%	0%
Acquisitions		0%	0%	0%	0%
Core Sales Growth		10%	(1)%	0%	4%
(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, 2024, Aptar’s reported earnings per share were $2.57, an increase of 24%, compared to $2.07 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 $2.63 and increased 21% from prior year adjusted earnings per share of $2.18, including comparable exchange rates. The prior year’s adjusted earnings included an effective tax rate of 25% (approximately $0.10 per share negative impact compared to the current year effective tax rate of 22%).

Outlook

Regarding Aptar’s outlook, Tanda stated, “We had a strong first half, and we expect growth to continue in the third quarter. We anticipate growth for our proprietary drug delivery systems to continue, driven by increased demand for nasally delivered central nervous system drugs and allergy therapies. We are also seeing growing demand for elastomeric components used for GLP-1. For our consumer dispensing technologies, we are seeing pockets of strength and progressive recovery in North America. As volumes come back, we believe we will benefit from our continued focus on cost management and improved operational leverage. Our solid operational performance and our strong balance sheet should position us well for future growth. Even in a slowing economy, we believe in the resilience of our portfolio as demonstrated by our recent dividend increase of approximately 10% on top of last year’s nearly 8% increase.”

Aptar currently expects earnings per share for the third quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.38 to $1.46. This guidance is based on an effective tax rate range of 23.5% to 25.5% with a comparable adjusted prior year effective tax rate of 24%. The earnings per share guidance range was based on spot rates at the end of June for all currencies. Our currency exchange rate assumptions equate to an approximately $0.02 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 increased the quarterly cash dividend by approximately 10% to $0.45 per share. The payment date is August 15, 2024, to stockholders of record as of July 25, 2024. During the second quarter, Aptar repurchased 34 thousand shares for approximately $5 million. 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 26, 2024 at 8:00 a.m. Central Time to discuss the company’s second quarter results for 2024. The call will last approximately one hour. Interested parties are invited to listen to a live webcast by visiting the Investor Relations website at investors.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 drug and consumer product dosing, dispensing and protection technologies. Aptar serves a number of attractive end markets including pharmaceutical, beauty, food, beverage, personal care and home care. Using market expertise, proprietary design, engineering and science to create innovative solutions 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 more than 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 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 recent events in the Middle East and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions; the availability of raw materials and components (particularly from sole sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; the execution of our fixed cost reduction initiatives, including our optimization initiative; 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 and price increases; changes in capital availability or cost, including rising interest rates; 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 against our systems and/or service providers 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, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; 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								Six Months Ended
		June 30,								June 30,
		2024				2023				2024				2023
Net Sales		$	910,063			$	895,906			$	1,825,511			$	1,755,973
Cost of Sales (exclusive of depreciation and amortization shown below)			567,440				573,711				1,150,196				1,131,133
Selling, Research & Development and Administrative			149,330				141,428				302,110				289,351
Depreciation and Amortization			64,968				62,267				129,317				121,526
Restructuring Initiatives			2,315				1,943				5,795				13,467
Operating Income			126,010				116,557				238,093				200,496
Other Income (Expense):
Interest Expense			(10,061	)			(9,688	)			(20,236	)			(19,916	)
Interest Income			3,102				648				6,000				1,320
Net Investment (Loss) Gain			(140	)			2,891				452				3,079
Equity in Results of Affiliates			130				643				(91	)			512
Miscellaneous Expense, net			(795	)			(173	)			(1,654	)			(1,344	)
Income before Income Taxes			118,246				110,878				222,564				184,147
Provision for Income Taxes			27,788				27,831				49,173				46,514
Net Income		$	90,458			$	83,047			$	173,391			$	137,633
Net (Gain) Loss Attributable to Noncontrolling Interests			(4	)			25				167				203
Net Income Attributable to AptarGroup, Inc.		$	90,454			$	83,072			$	173,558			$	137,836
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic		$	1.36			$	1.27			$	2.62			$	2.11
Diluted		$	1.34			$	1.24			$	2.57			$	2.07
Average Numbers of Shares Outstanding:
Basic			66,312				65,568				66,188				65,470
Diluted			67,575				66,855				67,509				66,748

AptarGroup, Inc.
Condensed Consolidated Financial Statements (Unaudited)
(continued)
($ In Thousands)
Consolidated Balance Sheets
		June 30, 2024			December 31, 2023
ASSETS
Cash and Equivalents		$	221,492		$	223,643
Short-term Investments			2,399			—
Accounts and Notes Receivable, Net			737,764			677,822
Inventories			484,608			513,053
Prepaid and Other			147,387			134,761
Total Current Assets			1,593,650			1,549,279
Property, Plant and Equipment, Net			1,466,276			1,478,063
Goodwill			950,075			963,418
Other Assets			443,256			461,130
Total Assets		$	4,453,257		$	4,451,890
LIABILITIES AND STOCKHOLDERS’ EQUITY
Short-Term Obligations		$	405,719		$	458,220
Accounts Payable, Accrued and Other Liabilities			762,390			793,089
Total Current Liabilities			1,168,109			1,251,309
Long-Term Obligations			681,532			681,188
Deferred Liabilities and Other			193,401			198,095
Total Liabilities			2,043,042			2,130,592
AptarGroup, Inc. Stockholders' Equity			2,396,449			2,306,824
Noncontrolling Interests in Subsidiaries			13,766			14,474
Total Stockholders' Equity			2,410,215			2,321,298
Total Liabilities and Stockholders' Equity		$	4,453,257		$	4,451,890

AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)
		Three Months Ended June 30, 2024
		Consolidated					Aptar Pharma				Aptar Beauty				Aptar Closures				Corporate & Other				Net Interest
Net Sales		$	910,063				$	414,533			$	321,487			$	174,043			$	—			$	—
Reported net income		$	90,458
Reported income taxes			27,788
Reported income before income taxes			118,246					111,814				22,773				11,971				(21,353	)			(6,959	)
Adjustments:
Restructuring initiatives			2,315					65				1,199				893				158
Net investment loss			140					—				—				—				140
Transaction costs related to acquisitions			140					—				140				—				—
Adjusted earnings before income taxes			120,841					111,879				24,112				12,864				(21,055	)			(6,959	)
Interest expense			10,061																					10,061
Interest income			(3,102	)																				(3,102	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)			127,800					111,879				24,112				12,864				(21,055	)			—
Depreciation and amortization			64,968					29,609				20,526				14,254				579
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)		$	192,768				$	141,488			$	44,638			$	27,118			$	(20,476	)		$	—
Reported net income margins (Reported net income / Reported Net Sales)			9.9	%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)			21.2	%				34.1	%			13.9	%			15.6	%
		Three Months Ended June 30, 2023
		Consolidated					Aptar Pharma				Aptar Beauty				Aptar Closures				Corporate & Other				Net Interest
Net Sales		$	895,906				$	390,700			$	329,587			$	175,619			$	—			$	—
Reported net income		$	83,047
Reported income taxes			27,831
Reported income before income taxes			110,878					98,100				21,796				14,232				(14,210	)			(9,040	)
Adjustments:
Restructuring initiatives			1,943					434				479				440				590
Net investment gain			(2,891	)				—				—				—				(2,891	)
Adjusted earnings before income taxes			109,930					98,534				22,275				14,672				(16,511	)			(9,040	)
Interest expense			9,688																					9,688
Interest income			(648	)																				(648	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)			118,970					98,534				22,275				14,672				(16,511	)			—
Depreciation and amortization			62,267					27,332				20,825				13,100				1,010
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)		$	181,237				$	125,866			$	43,100			$	27,772			$	(15,501	)		$	—
Reported net income margins (Reported net income / Reported Net Sales)			9.3	%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)			20.2	%				32.2	%			13.1	%			15.8	%

AptarGroup, Inc.
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)
		Six Months Ended June 30, 2024
		Consolidated					Aptar Pharma				Aptar Beauty				Aptar Closures				Corporate & Other				Net Interest
Net Sales		$	1,825,511				$	821,826			$	648,807			$	354,878			$	—			$	—
Reported net income		$	173,391
Reported income taxes			49,173
Reported income before income taxes			222,564					215,166				39,969				24,841				(43,176	)			(14,236	)
Adjustments:
Restructuring initiatives			5,795					89				3,909				1,653				144
Net investment gain			(452	)				—				—				—				(452	)
Transaction costs related to acquisitions			140					—				140				—				—
Adjusted earnings before income taxes			228,047					215,255				44,018				26,494				(43,484	)			(14,236	)
Interest expense			20,236																					20,236
Interest income			(6,000	)																				(6,000	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)			242,283					215,255				44,018				26,494				(43,484	)			—
Depreciation and amortization			129,317					58,411				41,754				27,785				1,367
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)		$	371,600				$	273,666			$	85,772			$	54,279			$	(42,117	)		$	—
Reported net income margins (Reported net income / Reported Net Sales)			9.5	%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)			20.4	%				33.3	%			13.2	%			15.3	%
		Six Months Ended June 30, 2023
		Consolidated					Aptar Pharma				Aptar Beauty				Aptar Closures				Corporate & Other				Net Interest
Net Sales		$	1,755,973				$	746,746			$	655,976			$	353,251			$	—			$	—
Reported net income		$	137,633
Reported income taxes			46,514
Reported income before income taxes			184,147					180,490				29,228				27,527				(34,502	)			(18,596	)
Adjustments:
Restructuring initiatives			13,467					1,565				9,770				962				1,170
Net investment gain			(3,079	)				—				—				—				(3,079	)
Transaction costs related to acquisitions			255					—				199				56				—
Adjusted earnings before income taxes			194,790					182,055				39,197				28,545				(36,411	)			(18,596	)
Interest expense			19,916																					19,916
Interest income			(1,320	)																				(1,320	)
Adjusted earnings before net interest and taxes (Adjusted EBIT)			213,386					182,055				39,197				28,545				(36,411	)			—
Depreciation and amortization			121,526					53,109				41,108				25,235				2,074				—
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)		$	334,912				$	235,164			$	80,305			$	53,780			$	(34,337	)		$	—
Reported net income margins (Reported net income / Reported Net Sales)			7.8	%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)			19.1	%				31.5	%			12.2	%			15.2	%

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,
		2024				2023				2024				2023
Income before Income Taxes		$	118,246			$	110,878			$	222,564			$	184,147
Adjustments:
Restructuring initiatives			2,315				1,943				5,795				13,467
Net investment loss (gain)			140				(2,891	)			(452	)			(3,079	)
Transaction costs related to acquisitions			140				—				140				255
Foreign currency effects (1)							(1,007	)							230
Adjusted Earnings before Income Taxes		$	120,841			$	108,923			$	228,047			$	195,020
Provision for Income Taxes		$	27,788			$	27,831			$	49,173			$	46,514
Adjustments:
Restructuring initiatives			567				494				1,458				3,559
Net investment loss (gain)			34				(708	)			(111	)			(754	)
Transaction costs related to acquisitions			35				—				35				65
Foreign currency effects (1)							(253	)							58
Adjusted Provision for Income Taxes		$	28,424			$	27,364			$	50,555			$	49,442
Net (Income) Loss Attributable to Noncontrolling Interests		$	(4	)		$	25			$	167			$	203
Net Income Attributable to AptarGroup, Inc.		$	90,454			$	83,072			$	173,558			$	137,836
Adjustments:
Restructuring initiatives			1,748				1,449				4,337				9,908
Net investment loss (gain)			106				(2,183	)			(341	)			(2,325	)
Transaction costs related to acquisitions			105				—				105				190
Foreign currency effects (1)							(754	)							172
Adjusted Net Income Attributable to AptarGroup, Inc.		$	92,413			$	81,584			$	177,659			$	145,781
Average Number of Diluted Shares Outstanding			67,575				66,855				67,509				66,748
Net Income Attributable to AptarGroup, Inc. Per Diluted Share		$	1.34			$	1.24			$	2.57			$	2.07
Adjustments:
Restructuring initiatives			0.03				0.02				0.06				0.15
Net investment loss (gain)			—				(0.03	)			—				(0.04	)
Transaction costs related to acquisitions			—				—				—				—
Foreign currency effects (1)							(0.01	)							—
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share		$	1.37			$	1.22			$	2.63			$	2.18
(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,
		2024				2023				2024				2023
Net Cash Provided by Operations		$	143,579			$	83,897			$	235,912			$	182,201
Capital Expenditures			(68,205	)			(77,187	)			(143,866	)			(155,012	)
Free Cash Flow		$	75,374			$	6,710			$	92,046			$	27,189

AptarGroup, Inc.
Reconciliation of Adjusted Earnings Per Diluted Share (Unaudited)
(In Thousands, Except Per Share Data)
		Three Months Ending September 30,
		Expected 2024		2023
Income before Income Taxes				$	110,049
Adjustments:
Restructuring initiatives					6,161
Net investment loss					1,240
Realized gain on investments included in net investment loss above					4,188
Transaction costs related to acquisitions					—
Foreign currency effects (1)					(1,412	)
Adjusted Earnings before Income Taxes				$	120,226
Provision for Income Taxes				$	25,751
Adjustments:
Restructuring initiatives					1,611
Net investment loss					304
Realized gain on investments included in net investment loss above					1,026
Transaction costs related to acquisitions					—
Foreign currency effects (1)					(330	)
Adjusted Provision for Income Taxes				$	28,362
Net Loss Attributable to Noncontrolling Interests				$	(2	)
Net Income Attributable to AptarGroup, Inc.				$	84,296
Adjustments:
Restructuring initiatives					4,550
Net investment loss					936
Realized gain on investments included in net investment loss above					3,162
Transaction costs related to acquisitions					—
Foreign currency effects (1)					(1,082	)
Adjusted Net Income Attributable to AptarGroup, Inc.				$	91,862
Average Number of Diluted Shares Outstanding					67,035
Net Income Attributable to AptarGroup, Inc. Per Diluted Share (3)				$	1.26
Adjustments:
Restructuring initiatives					0.07
Net investment loss					0.01
Realized gain on investments included in net investment loss above					0.05
Transaction costs related to acquisitions					—
Foreign currency effects (1)					(0.02	)
Adjusted Net Income Attributable to AptarGroup, Inc. Per Diluted Share (2)		$1.38 - $1.46		$	1.37
(1) Foreign currency effects are approximations of the adjustment necessary to state the prior year earnings and earnings per share using spot rates as of June 30, 2024 for all applicable foreign currency exchange rates.
(2) AptarGroup’s expected earnings per share range for the third quarter of 2024, excluding any restructuring expenses, acquisition costs and changes in fair value of equity investments, is based on an effective tax rate range of 23.5% to 25.5%. This tax rate range compares to our third quarter of 2023 effective tax rate of 23% on reported earnings per share and 24% on adjusted earnings per share.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240725389689/en/

Investor Relations Contact:

Mary Skafidas

mary.skafidas@aptar.com

815-479-5530

Media Contact:

Katie Reardon

katie.reardon@aptar.com

815-479-5671

Source: AptarGroup, Inc.

FAQ

What were AptarGroup's (ATR) Q2 2024 earnings per share?

AptarGroup reported earnings per share of $1.34 for Q2 2024, an 8% increase from the prior year. Adjusted earnings per share were $1.37, up 12% from the previous year.

How did AptarGroup's (ATR) Pharma segment perform in Q2 2024?

AptarGroup's Pharma segment delivered strong performance in Q2 2024, with reported sales growth of 6% and core sales growth of 7%, driven by continued demand for proprietary drug delivery systems.

What was AptarGroup's (ATR) dividend announcement for Q2 2024?

AptarGroup increased its quarterly dividend by approximately 10% to $0.45 per share, with a payment date of August 15, 2024, for stockholders of record as of July 25, 2024.

What is AptarGroup's (ATR) earnings guidance for Q3 2024?

AptarGroup expects earnings per share for Q3 2024, excluding restructuring expenses and other factors, to be in the range of $1.38 to $1.46, based on an effective tax rate range of 23.5% to 25.5%.