AptarGroup(US:ATR)2025-02-07 18:09Financial 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]