Core Viewpoint - AptarGroup, Inc. reported strong fourth-quarter 2024 adjusted earnings per share (EPS) of $1.52, exceeding expectations and reflecting a 27% year-over-year increase from $1.20 per share [1][2] Financial Performance - Total revenues for Q4 2024 increased by 1.1% year over year to $848 million, but fell short of the Zacks Consensus Estimate of $858 million [3] - Adjusted operating income rose 10.8% year over year to $127.5 million, with an adjusted operating margin of 15%, up from 13.7% in the prior year [4] - Adjusted EBITDA increased by 8.6% year over year to $194.9 million, with an adjusted EBITDA margin of 23% compared to 21.4% in Q4 2023 [5] Segment Performance - Pharma segment revenues grew by 4.1% year over year to $400.7 million, although it missed the estimate of $412 million [6] - Beauty segment revenues decreased by 4.8% year over year to $274 million, impacted by lower tooling sales [8] - Closures segment revenues rose by 4.6% year over year to $173 million, with core sales increasing by 7% [10] Cash Position and Shareholder Returns - As of December 31, 2024, cash and cash equivalents stood at $223.8 million, with cash flow from operations reaching $643 million for the year [12] - The board authorized a $500 million common stock repurchase and declared a quarterly cash dividend of 45 cents per share [12][13] Annual Performance - For the full year 2024, adjusted EPS increased by 17.7% year over year to $5.65, surpassing the Zacks Consensus Estimate of $5.38 [14] - Total revenues for 2024 rose by 2.7% year over year to $3.58 billion, missing the consensus estimate of $3.6 billion [14] Outlook - The company anticipates first-quarter 2025 adjusted EPS to be in the range of $1.11-$1.19 [15] Stock Performance - ATR shares have gained 4% over the past year, compared to the industry's growth of 9.5% [16]

Core Insights - AptarGroup's international revenue performance is crucial for assessing its financial resilience and growth prospects [1][2][3] Revenue Performance - The total revenue for AptarGroup in the quarter was $848.09 million, reflecting a year-over-year increase of 1.2% [4] - Latin America generated $67.16 million, accounting for 7.92% of total revenue, which was a decrease of 2.25% from the projected $68.71 million [5] - Asia contributed $94.51 million, representing 11.14% of total revenue, exceeding the consensus estimate of $89.99 million by 5.02% [6] Future Revenue Forecasts - Analysts project AptarGroup's total revenue for the current fiscal quarter to be $920.38 million, indicating a 0.5% increase from the previous year [7] - For the full year, total annual revenue is expected to reach $3.76 billion, marking a 5% increase compared to last year, with Latin America and Asia projected to contribute 8% ($300.62 million) and 10.3% ($385.55 million) respectively [8] Market Dynamics - The reliance on international markets presents both opportunities and challenges for AptarGroup, making it essential to monitor international revenue trends for future projections [9] - Analysts closely observe these trends, especially in light of global interdependence and geopolitical issues, which can influence earnings forecasts [10] Stock Performance - Over the past month, AptarGroup's stock has declined by 6.7%, while the Zacks S&P 500 composite increased by 2.1% [13] - In the last three months, the company's stock price has decreased by 14%, contrasting with a 1.2% rise in the S&P 500 index [13]

Financial Data and Key Metrics Changes - AptarGroup, Inc. achieved core sales growth of 2% in Q4 2024, with adjusted earnings per share of $1.52, exceeding guidance due to better operational performance and a lower effective tax rate [7][32] - The adjusted EBITDA margin for Q4 was at 23%, up from 21.4% in the prior year, driven by productivity gains and cost mitigation measures [8][32] - For the full year, adjusted earnings per share increased by 18% to $5.64, with adjusted EBITDA margins expanding by 130 basis points to 21.6% [46][48] Business Line Data and Key Metrics Changes - The pharma segment achieved 8% core sales growth for the full year, with a 35% adjusted EBITDA margin driven by higher value products and royalties [9][10] - The beauty segment saw a 3% decline in core sales in Q4, primarily due to lower sales of prestige products, although personal care technologies grew [14][38] - The closures segment reported a 7% increase in core sales, with food sales up 9% and beverage sales up 10%, leading to an adjusted EBITDA margin of 16.1% [39][40] Market Data and Key Metrics Changes - In the beauty segment, Europe maintained its adjusted EBITDA margin, while North America showed progressive recovery, and China faced challenges but showed improvement towards the end of the year [16][17] - India experienced good growth, albeit from a low base, and new project activity is encouraging across most regions [17] - The closures segment returned to its core sales long-term target range, driven by increased global demand for food and beverage dispensing technologies [18] Company Strategy and Development Direction - The company anticipates continued strength in its proprietary drug delivery systems, particularly in the pharma segment, which is expected to be the main driver of growth [60] - AptarGroup is focusing on innovation and sustainability, with ongoing efforts to improve productivity and reduce costs across all segments [56][159] - The company plans to continue returning capital to shareholders, with expectations for an increasing dividend for the 32nd consecutive year [19][50] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2025, despite anticipated challenges from foreign exchange impacts and higher tax rates [58][60] - The company expects to see gradual improvement in the beauty segment and continued growth in the pharma segment, particularly in injectables and proprietary drug delivery systems [61][62] - Management highlighted the importance of managing costs and improving operational efficiencies to support future growth [62] Other Important Information - The company returned $183 million to shareholders in 2024, including $114 million in dividends and $69 million in share repurchases, marking a 20% increase from 2023 [50] - The effective tax rate for Q4 was 13%, significantly lower than the previous year's 23%, due to the realization of deferred tax assets [33] Q&A Session Summary Question: Can you discuss the green shoots in China and their potential impact on 2025? - Management noted that local brands are gaining market share in China, and there is optimism for growth in skincare and fragrance as the market shows signs of vitality [72][75] Question: What are the expectations for earnings per share growth in 2025, excluding currency and tax effects? - Management is cautiously optimistic about achieving double-digit EPS growth in 2025, driven by cost reductions and operational efficiencies [79][80] Question: What is the impact of the recent French tax legislation on the company's financials? - The new tax legislation will impact the entire year, with an expected increase in the effective tax rate compared to 2024 [82] Question: Can you elaborate on the destocking in cold and flu products and the timeline for normalization? - Management indicated that there are signs of bottoming out in consumer healthcare, with expectations for sequential increases as the flu season progresses [102] Question: What is the outlook for the injectables segment in 2025? - Management remains bullish on the injectables segment, citing a strong pipeline and order book, but is cautious about the ramp-up timing [110] Question: How does the company view the impact of tariffs on its operations? - Management expressed that tariffs are not a significant concern, as the company primarily produces in-region for the region [122] Question: What are the long-term goals for return on invested capital (ROIC)? - Management stated that they do not frequently change long-term targets but will review ROIC goals in the upcoming September meeting [124]

During the course of this presentation, certain non-GAAP financial information will be presented. Refer to the Appendix at the end of this presentation for additional information and a reconciliation to the most directly comparable GAAP measures. However, we are not able to reconcile forward-looking non- GAAP financial measures 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 reli ...

Financial Performance - Net sales for 2024 reached $3,582,890, an increase of 2.7% from $3,487,450 in 2023[311] - Operating income improved to $496,497 in 2024, up 22.9% from $404,019 in 2023[311] - Net income attributable to AptarGroup, Inc. was $374,541 in 2024, a 31.7% increase compared to $284,487 in 2023[311] - Basic earnings per share rose to $5.65 in 2024, up from $4.34 in 2023, reflecting a 30.2% increase[311] - Total operating expenses for 2024 were $3,086,393, slightly up from $3,083,431 in 2023[311] - Comprehensive income attributable to AptarGroup, Inc. decreased to $254,035 in 2024 from $316,891 in 2023, a decline of 19.7%[314] - Cash and equivalents remained stable at $223,844 in 2024, compared to $223,643 in 2023[317] - Total assets decreased slightly to $4,432,278 in 2024 from $4,451,890 in 2023[320] - Total current liabilities decreased to $1,068,281 in 2024 from $1,251,309 in 2023, a reduction of 14.6%[320] - Retained earnings increased to $2,370,537 in 2024, up from $2,109,816 in 2023, reflecting a growth of 12.3%[320] - Net income for 2024 was $374.178 million, an increase of 31.7% compared to $284.176 million in 2023[326] - Operating cash flow for 2024 was $643.413 million, up from $575.239 million in 2023, reflecting a growth of 11.8%[326] - Total cash and equivalents at the end of 2024 reached $224.344 million, compared to $224.143 million at the end of 2023[328] - Capital expenditures in 2024 amounted to $276.481 million, a decrease from $312.342 million in 2023[326] - The company reported a total stockholders' equity of $2.485924 billion as of December 31, 2024, up from $2.321298 billion in 2023[323] - The company declared cash dividends of $114.055 million in 2024, compared to $103.683 million in 2023, representing an increase of 10.3%[326] Foreign Exchange and Currency Risks - The company has significant foreign exchange exposure, particularly to the euro, which may impact financial results due to currency fluctuations[306] - As of December 31, 2024, the company has recorded the fair value of foreign currency forward exchange contracts totaling $0.6 million in both prepaid and accounts payable[308] - The company entered into a seven-year USD/EUR fixed-to-fixed cross currency interest rate swap to hedge interest rate exposure related to $203 million of debt, with a fair value of $11.9 million[308] - The company experienced a foreign currency translation adjustment loss of $145.807 million in 2024, compared to a gain of $48.946 million in 2023[326] - The company recorded losses from foreign currency transactions of $2.0 million in 2024, $7.3 million in 2023, and $7.2 million in 2022, indicating a decrease in losses year-over-year[373] Regulatory and Compliance Risks - The company is subject to various laws and regulations, including data privacy laws like GDPR and CPRA, which could incur significant compliance costs and affect operations[138] - The company's products are regulated by the U.S. FDA and similar agencies globally, potentially leading to delays in product revenue realization and increased costs[139] - Future government regulations on environmental matters may impact the company's operations and require changes in manufacturing processes[146] - The company could be affected by changes in tax rates and tax legislation, which may materially impact financial condition and operating results[149] - The company maintains a liability for unrecognized tax benefits from uncertain tax positions, ensuring adequate provision for potential tax adjustments[369] Goodwill and Intangible Assets - As of December 31, 2024, the company has approximately $936.3 million in recorded goodwill, which may be subject to impairment based on future business conditions[137] - The company has performed annual goodwill impairment tests, determining that the fair value of reporting units was greater than their carrying amounts, thus no impairment was required[359] - The company did not recognize any impairment for goodwill during the years ended December 31, 2024, 2023, or 2022[426] - The company’s total intangible assets increased slightly from $520.2 million in 2023 to $528.5 million in 2024[427] - The company purchased $17.7 million of intangible assets in 2024, primarily related to patents valued at $12.4 million[427] Investments and Equity - The company’s investment in equity securities in 2024 was $99.055 million, indicating a strategic focus on expanding its investment portfolio[326] - The company evaluates equity method investments for impairment under ASC 323, recognizing impairment losses when declines in value are determined to be other-than-temporary[348] Liabilities and Debt Management - The company’s total liabilities decreased from $1.663 billion in 2023 to $1.586 billion in 2024[323] - The revolving credit facility utilization increased to $176.0 million in 2024 from $80.7 million in 2023, with a total facility limit of $600 million[442] - Interest and fees related to the credit facility amounted to approximately $9.5 million in 2024, up from $3.9 million in 2023[443] - Long-term obligations totaled $688.1 million in 2024, slightly up from $681.2 million in 2023[448] - The company has a consolidated leverage ratio of 1.08 to 1.00, well below the maximum requirement of 3.50 to 1.00[449] Research and Development - Research and development expenses amounted to $96.1 million in 2024, compared to $92.8 million in 2023 and $93.5 million in 2022, indicating a year-over-year increase of 3.6%[365] Employee Benefits and Pension Plans - The benefit obligation for domestic plans decreased to $175.194 million in 2024 from $186.013 million in 2023, a decline of approximately 5.4%[459] - The fair value of domestic plan assets increased to $180.761 million in 2024 from $173.735 million in 2023, an increase of about 4.0%[459] - The net periodic benefit cost for domestic plans was $5.967 million in 2024, slightly up from $5.891 million in 2023[463] - The accumulated benefit obligation (ABO) for domestic defined benefit pension plans was $163.4 million in 2024, down from $171.6 million in 2023[463] - The projected benefit obligation (PBO) for domestic plans was $14.172 million in 2024, compared to $14.806 million in 2023[465] Other Comprehensive Income - The balance of accumulated other comprehensive income/loss as of December 31, 2024, was $(429,475) million, reflecting a significant increase in losses from $(308,734) million in 2023[480] - The net current-period other comprehensive loss income for 2024 was $(120,741) million, compared to $(25,325) million in 2022[480] - Total reclassifications from accumulated other comprehensive income for the year ended December 31, 2024, amounted to $370 million, down from $771 million in 2023[481]

Core Viewpoint - AptarGroup reported quarterly earnings of $1.52 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing an increase from $1.21 per share a year ago, resulting in an earnings surprise of 20.63% [1][2] Financial Performance - The company posted revenues of $848.09 million for the quarter ended December 2024, which was 1.10% below the Zacks Consensus Estimate, but an increase from $838.48 million year-over-year [2] - Over the last four quarters, AptarGroup has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance and Outlook - AptarGroup shares have increased by approximately 0.8% since the beginning of the year, while the S&P 500 has gained 3.1% [3] - The company's earnings outlook is mixed, with the current consensus EPS estimate for the coming quarter at $1.29 on revenues of $920.38 million, and for the current fiscal year at $5.95 on revenues of $3.76 billion [7] Industry Context - The Containers - Paper and Packaging industry, to which AptarGroup belongs, is currently ranked in the bottom 44% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact AptarGroup's stock performance [5][6]

Financial Performance - Reported sales for Q4 2024 increased by 1% to $848 million, while core sales grew by 2%[5] - Net income for Q4 2024 reached $101 million, marking a 62% increase from the previous year[2] - For the full year 2024, reported sales increased by 3% to $3.58 billion, with core sales also rising by 3%[11] - Full year net income grew by 32% to $375 million, with diluted earnings per share increasing by 30% to $5.53[13] - Net sales for the three months ended December 31, 2024, were $848.1 million, a 1.8% increase from $838.5 million in the same period of 2023[23] - Operating income for the three months ended December 31, 2024, was $120.1 million, compared to $84.2 million in the same period of 2023, representing a 42.6% increase[23] - Net income attributable to AptarGroup, Inc. for the three months ended December 31, 2024, was $100.9 million, up 62% from $62.4 million in the same period of 2023[23] - Consolidated net sales for the year ended December 31, 2024, reached $3,582,890, an increase from $3,487,450 in 2023, representing a growth of approximately 2.7%[28] - Reported net income for the year ended December 31, 2024, was $374,178, up from $284,176 in 2023, indicating a year-over-year increase of approximately 31.7%[28] - Adjusted net income attributable to AptarGroup, Inc. for the year ended December 31, 2024, was $381,585, compared to $320,583 in 2023, representing a growth of approximately 19.0%[30] Cash Flow and Assets - Free cash flow for 2024 increased by 40%, supported by a 12% rise in net cash provided by operations[6] - Cash and equivalents as of December 31, 2024, were $223.8 million, compared to $223.6 million as of December 31, 2023[26] - Free cash flow for the year ended December 31, 2024, was $366,932, compared to $262,897 in 2023, reflecting a significant increase of approximately 39.6%[31] - Total assets as of December 31, 2024, were $4.43 billion, slightly down from $4.45 billion as of December 31, 2023[26] - Total liabilities decreased to $1.95 billion as of December 31, 2024, from $2.13 billion as of December 31, 2023[26] Profitability and Margins - Adjusted EBITDA for Q4 2024 increased by 9% to $195 million, achieving an adjusted EBITDA margin of 23%[6] - Adjusted EBITDA for the three months ended December 31, 2024, was $194.9 million, with an adjusted EBITDA margin of 23.0%[27] - Adjusted EBITDA for the year ended December 31, 2024, was $774,924, with an adjusted EBITDA margin of 21.6%, compared to $707,722 and a margin of 20.3% in 2023[28] - Reported net income margins for 2024 were 10.4%, up from 8.1% in 2023, indicating improved profitability[28] Shareholder Returns and Dividends - Aptar's Board authorized a $500 million share repurchase program and declared a quarterly cash dividend of $0.45 per share[16] - The average number of diluted shares outstanding increased to 67.9 million for the three months ended December 31, 2024, from 67.1 million in the same period of 2023[23] - The average number of diluted shares outstanding increased to 67,691 for the year ended December 31, 2024, from 66,905 in 2023[30] Tax and Restructuring - The effective tax rate for 2024 was 20%, down from 24% in the prior year, contributing to improved net income[13] - The effective tax rate for the first quarter of 2025 is expected to range from 25% to 27%, compared to 20% for reported earnings and 21% for adjusted earnings in the first quarter of 2024[35] - Restructuring initiatives incurred costs of $3.3 million for the three months ended December 31, 2024, down from $25.4 million in the same period of 2023[27] - The company incurred restructuring initiatives costs of $13,002 in 2024, down from $45,004 in 2023, suggesting a reduction in restructuring activities[30] Future Outlook - The company anticipates Q1 2025 earnings per share to be in the range of $1.11 to $1.19, impacted by foreign currency fluctuations[15] - The adjusted net income per diluted share is projected to be in the range of $1.11 to $1.19 for the first quarter of 2025[35] - The company is focusing on restructuring initiatives and managing foreign currency effects to improve future performance[34] Other Financial Metrics - Interest expense for the year ended December 31, 2024, was $43,898, compared to $40,418 in 2023, reflecting an increase in financing costs[28] - Adjusted earnings before income taxes for the year ended December 31, 2024, were $479,343, compared to $423,084 in 2023, marking an increase of approximately 13.3%[30] - Foreign currency effects negatively impacted net income by approximately $4,710,000[34] - The company incurred transaction costs related to acquisitions, which were not specified in the report[34] - The net investment gain was reported as a loss of $447,000 in the adjusted net income[34]

Core Viewpoint - AptarGroup (ATR) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results being a significant factor influencing its near-term stock price [1][2]. Financial Expectations - The upcoming earnings report is scheduled for February 6, 2025, with a consensus EPS estimate of $1.26, reflecting a year-over-year increase of 4.1%. Revenues are projected to be $858.66 million, up 2.4% from the previous year [3][2]. - The consensus EPS estimate has been revised down by 2.11% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for AptarGroup is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.16%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - Historical performance shows that AptarGroup has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +4.20% in the last reported quarter [12][13]. Industry Context - In comparison, Berry Global (BERY), another player in the Containers - Paper and Packaging industry, is expected to report earnings of $1 per share, reflecting a year-over-year decline of 18%, with revenues projected at $2.34 billion, also down 18% [17]. - Berry Global's consensus EPS estimate has been revised down by 2.3% over the last 30 days, resulting in a negative Earnings ESP of -3.47% and a Zacks Rank of 4 (Sell), making it challenging to predict an earnings beat [18].

Core Insights - AptarGroup (ATR) is positioned to potentially continue its earnings-beat streak in the upcoming report, particularly within the Zacks Containers - Paper and Packaging industry [1] Earnings Performance - For the last reported quarter, AptarGroup achieved earnings of $1.49 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, resulting in a surprise of 4.20% [2] - In the previous quarter, the company was expected to report earnings of $1.36 per share but delivered $1.37 per share, yielding a surprise of 0.74% [2] Earnings Estimates and Predictions - Recent estimates for AptarGroup have been trending upward, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [4] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced a positive surprise nearly 70% of the time [5] Earnings ESP Details - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions [6] - AptarGroup currently has an Earnings ESP of +0.16%, suggesting increased analyst optimism regarding its near-term earnings potential [7] Upcoming Earnings Report - The next earnings report for AptarGroup is anticipated to be released on February 6, 2025 [7]

Core Viewpoint - AptarGroup, Inc. (ATR) is positioned for growth through its business transformation plan, innovative product launches, and acquisitions, which are expected to enhance organizational effectiveness and drive revenue growth [1][2]. Business Transformation and Growth Strategy - ATR is focused on business transformation to drive top-line growth, operational excellence, and innovation [2][6]. - The company aims to maintain a long-term core sales target of 7-11% through its unique pharma medication delivery systems [17]. Segment Performance - The Pharma segment is experiencing strong demand for proprietary dispensing devices used in various medical applications, including nasal decongestants and emergency medicines [3][9]. - The Beauty segment is seeing a recovery in North America, with increased sales in prestige and mass fragrances, as well as skin care and color cosmetic solutions [4][8]. - However, the Beauty segment faces challenges in the China market and the prestige fragrance market, which may impact margins [10][16]. Innovative Product Launches and Acquisitions - ATR has had the highest number of product launches in the Pharma segment since 2018, with a solid pipeline continuing into 2024 [9]. - The company acquired SipNose Nasal Delivery Systems' device technology assets in October 2024, expanding its intellectual property and enhancing growth in intranasal delivery [18]. Cost and Margin Considerations - ATR is facing increased input costs, including utilities, metals, freight, and labor, which are impacting margins despite price increases to offset these costs [19]. - The company has implemented cost-control measures and pricing actions to sustain margins in upcoming quarters [16]. Stock Performance - ATR shares have gained 28.4% over the past year, outperforming the industry growth of 15.4% [20].