Financial Data and Key Metrics Changes - The company reported adjusted earnings per share of $1.20, with a neutralized increase of approximately 5% over the prior year period when accounting for currency effects and tax [4][15] - Reported sales decreased by 3%, with core sales remaining flat compared to the prior year period [14][20] - Adjusted EBITDA increased by 3% to $183 million, with adjusted EBITDA margins expanding by 120 basis points to 20.7% [14][22] Business Line Data and Key Metrics Changes - Pharma segment's core sales increased by 3%, with prescription core sales up 10% driven by strong demand for emergency medicines and therapeutics [17] - Consumer Healthcare core sales decreased by 10% due to softer demand for nasal decongestants and cough medicines [17] - Injectables core sales decreased by 8% due to tough comparisons from the prior year [18] - Active Materials Science solutions saw an 11% increase in core sales driven by demand for diabetes and probiotic solutions [18] - Beauty segment's core sales decreased by 3%, with prestige fragrance sales declining significantly [19] - Closures segment's core sales decreased by 2%, with product sales growth offset by lower tooling sales [20] Market Data and Key Metrics Changes - The U.S. market showed signs of inventory normalization, while other regions have not yet experienced similar trends [6][36] - The company noted a robust order book for injectables in 2025, indicating strong demand from GLP-1 and Biologics [7] Company Strategy and Development Direction - The company is focused on long-term growth driven by macro trends such as healthcare decentralization and the growth of generic medicines [6][7] - The company is ramping up share repurchases, having repurchased over $80 million worth of shares in the first quarter [13] - The company aims to leverage its global footprint and local supply chain structure to adapt to changing market conditions and tariff impacts [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects despite current economic uncertainties, highlighting resilience in essential product categories [28][114] - The company anticipates a strong second quarter with positive contributions from all segments, particularly Pharma and Beauty [30][31] - Management acknowledged the challenges posed by inventory levels and destocking cycles but remains optimistic about future demand [36][38] Other Important Information - The effective tax rate for the first quarter was 25.8%, reflecting the impact of a temporary surtax in France [15] - The company ended the quarter with a cash balance of $126 million and a net debt of $870 million, maintaining a leverage ratio of 1.16 [24] Q&A Session Summary Question: Can you provide more color on order patterns and inventory levels? - Management noted that while U.S. inventories have normalized, other regions have not yet seen similar trends, and they expect another quarter of destocking [36][38] Question: What is the impact of GLP-1s on injectables? - There is strong demand for GLP-1s, and the company is ramping up capabilities to meet this demand [40] Question: What is the outlook for the Prestige fragrance market? - Management indicated that the decline in Prestige fragrance sales is primarily due to lower sales in Europe, but they expect improvements in the coming quarters [56][60] Question: How are tariffs affecting the business? - The company is monitoring the tariff situation closely, expecting limited net effects, and is passing on costs where necessary [26][86] Question: What is the outlook for tooling activity? - Management indicated that tooling activity is on the rise as customers seek to differentiate their products [109]