Q1 2024 Results
Stephan Tanda, President & CEO and Bob Kuhn, Executive Vice President and CFO
April 26, 2024
Forward Looking Statements & Non-GAAP Financial Measures
This presentation includes 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 management's beliefs and assumptions in light of
information currently available to management. Accordingly, the Company's actual results may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in the Company's operations and business environment, including, among other factors, those described in documents filed by the Company with the Securities and Exchange Commission, specifically its Form 10-Ks and 10- Qs. The Company does not assume any obligation to update, amend or clarify such statements to reflect new events, information or circumstances after the date of this presentation.
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-lookingnon-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 reliably predicted without unreasonable effort because they are not part of the company's routine activities, such as restructuring and acquisition costs. The variability of these items could have a significant impact on our future GAAP financial results.
Adjusted EBITDA and EPS 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. Adjusted EPS also neutralizes the impact of foreign currency translation effects when comparing current results to the prior year, and further adjusts for the net effect of a tax payment related to a legal entity reorganization. Prior year Adjusted EPS includes foreign currency effects that are approximations of the adjustment necessary to state the prior year earnings per share using current period foreign currency exchange rates. Core sales exclude acquisitions and changes in foreign currency sales. Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures. Return on Investment Capital (ROIC) is calculated as Adjusted Earnings before Net Interest and Taxes, less Tax Effect / Average Capital, whereas Average Capital is the average of beginning of year capital and Capital is Equity plus Debt less Cash.
2
Q1 2024 Financial Highlights
+6%
Reported Sales Growth
+50%
Reported Earnings Per
Share Growth
+5%
Core Sales Growth*
+31%
Adjusted Earnings Per
Share Growth*
Highlights:
- Off to a great start for the year
- Strong demand for Pharma's proprietary drug delivery systems and improved performance of the injectables unit
- Recovery in certain North American consumer end- markets
- Teams remain focused on cost management and improving operational leverage
- Decreased selling, general and administrative (SG&A) expenses as a percentage of sales over the prior year quarter
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. | 3 |
Sustainability Recognition
Barron's | CDP | Capital | Newsweek | Forbes | EcoVadis | 3BL Media | ISS ESG | USA Today | Le Point | ||
In the Top 100 | Recognized as a | France | In the Top 100 | One of the | Sustainability Rating | One of the | Achieved | One of the Top | One of the Most | ||
Most Sustainable | Supplier | Named a | America's Most | World's Top | Platinum | 100 Best | Prime | 25 of America's | Responsible | ||
Companies | Engagement | Company | Responsible | Companies For | Top 1% | Corporate | Status | Climate Leaders | Companies | ||
from 2019-2024 | Leader | Committed to | Companies | Women | since 2021 | Citizens | from 2020-2023 | 2023 | in France | ||
2020-2023 | Diversity | 2020-2024 | from 2021-2023 | from 2021-2023 | 2020-2023 | ||||||
In 2023 | |||||||||||
Logo above reprinted with permission of Barron's
4
Recent Innovations and Solutions on the Market
Aptar Pharma
- Our Airless+ CS system is the drug delivery solution used to treat rosacea, recently approved by the National Medical Products Administration in China
- Our proprietary ophthalmic squeeze dispenser is used for AbbVie's Refresh® brand of an OTC lubricant eye drop treatment in the US
- Aptar's PureHale® technology is used to dispense Frida Baby's ultra-fine, natural sterile saline mist in children's cough and cold in the
US - In Turkey, our nasal spray pump is used to deliver a new allergic rhinitis treatment, Fixriva®
Aptar Beauty
- Coty's new Marc Jacobs® Daisy Wild fragrance features our pump, custom overcap and colored dip-tube
- Aptar's recyclable airless dispensing system is the solution for Avene's dermo- cosmetic rosacea solution
- Our reloadable airless technology is featured on a skincare launch by Chinese beauty brand, Zhiben
- Our fully recyclable lotion pump is the dispensing solution for the new Papatui men's skincare line in the US
Aptar Closures
• Aptar's sports cap is the dispensing solution for PepsiCo's new Gatorade Water in the
US
- Our mono-material, tamper evident closure is featured on a line of Voss® water in the US
- Aptar's fully recyclable tube top is used for Unilever's St. Ive's® brand skin scrub in the
US - Our tamper-evident,snap-top closure that features a customizable in-molded scoop is featured on Nutrapharm's protein supplement in Latin America
5
First Quarter 2024 Reported Results
Q1 Reported Sales
$1,200 | (in millions $) | ||
$1,000 | $860 | 6% | $915 |
$800 | |||
$600 | |||
$400 | |||
$200 | |||
$- | |||
Q1 2023 | Q1 2024 |
+5% | +1% |
Currency | |
Core | Effects |
Sales
Growth* 0%
Acquisitions
Q1 Reported EPS
$1.40 | $1.23 | |
$1.20 | 50% | |
$1.00 | ||
$0.82 | ||
$0.80 | ||
$0.60 | ||
$0.40 | ||
$0.20 | ||
$- | ||
Q1 2023 | Q1 2024 |
25.5% 20.5%
Q1 2023 | Q1 2024 |
Reported Reported
Effective Tax Effective Tax
RateRate
Q1 Highlights
- Aptar Pharma's strong performance was driven by continued growth for proprietary drug delivery systems used for emergency medicine, allergic rhinitis, asthma and central nervous system therapeutics, as well as nasal saline rinses and nasal decongestants
- Aptar Beauty's reported sales were flat compared to the prior year quarter, and with currency effects core sales were down slightly. Beauty's core sales faced difficult comparisons - coming off 9% core sales growth in the prior year quarter. While volumes increased modestly, pricing and resin pass throughs negatively impacted the quarter
- Aptar Closures' reported and core sales increased over the prior year quarter due to higher sales and tooling sales in North America
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. | 6 |
First Quarter 2024 Adj. EPS and Adj. EBITDA
Q1 Adjusted EPS
$1.40 | $1.26 | |
$1.20 | $0.96 | 31% |
$1.00 | ||
$0.80 | ||
$0.60 | ||
$0.40 | ||
$0.20 | ||
$- | ||
Q1 2023 | Q1 2024 |
25.6% 20.6%
Q1 2023 | Q1 2024 |
Effective Tax | Effective Tax |
Rate Adjusted | Rate Adjusted |
Earnings* | Earnings* |
The prior year's adjusted earnings included an effective tax rate of 25.6% (approximately a $0.07 cents per share impact compared to the current year effective tax rate of 20.6%)
Q1 Adjusted EBITDA*
$200 | (in millions $) | |
$179 | ||
$180 | $154 | 16% |
$160 | ||
$140 | ||
$120 | ||
$100 | ||
$80 | ||
$60 | ||
$40 | ||
$20 | ||
$- | ||
Q1 2023 | Q1 2024 |
Adjustments:
- 2023: Restructuring Initiatives of $11.5 mil; Net investment gain of ($0.2) mil; Transaction costs related to acquisitions of $0.3 mil
- 2024: Restructuring Initiatives of $3.5 mil; Net investment gain of ($0.6) mil
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. | 7 |
Outlook
Earnings Per Share | ||||
$1.40 | $1.24 | $1.22 | $1.30 - $1.38 | 22-24% |
$1.20 | ||||
$1.00 | Q2 Expected | |||
$0.80 | Tax Rate Range | |||
$0.60 | ||||
(prior year Q2 | ||||
$0.40 | ||||
Adj. EPS effective | ||||
$0.20 | ||||
tax rate = 25%) | ||||
$0.00 | ||||
Q2 2023 | Q2 2023 | Q2 2024 | ||
Reported | Adjusted* | Outlook* |
Guidance Fx Euro Rate = 1.08
Outlook Highlights
- The year is off to a great start and we will continue to build on this momentum in the second quarter
-
Anticipate demand for our proprietary drug delivery systems and elastomeric components for biologics to continue to grow in the second quarter, and we expect
Pharma's strong performance to continue throughout the year - Expect demand to build for our consumer dispensing technologies in the second quarter as the destocking abates in North America
- Beauty and Closures will continue to focus on improving operational performance and ongoing cost management, including optimizing our footprint
- We are energized for 2024, which we anticipate will be another dynamic year for us, as we continue to focus on accelerating growth and improving profitability
- Depreciation and amortization for 2024 is expected to be between $260 to $270 million
- Capital expenditures in 2024, net of any government grants, are expected to be between $280 and $300 million
* See accompanying slide titled: Forward Looking Statements & Non-GAAP Financial Measures. | 8 |
Appendix
Reconciliation of Adjusted EBIT and Adjusted EBITDA to Net Income (Unaudited)
($ In Thousands)
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
AptarGroup Inc. published this content on 25 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 April 2024 21:42:18 UTC.