AptarGroup(ATR) - 2024 Q4 - Annual Results

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]