ATR - Earnings call transcript Q3 2017

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to AptarGroup's 2017 Third Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session. Introducing today's conference call is Mr. President, Vice Senior DellaMaria, Investor Relations. Matthew ahead, go sir. Please

Matthew DellaMaria

forward-looking Officer Participating Thank on questions. a contained financial and today call results with differ comments. it and a Chief that in Chief that our open to of details, Please materially will results everyone. some forward-looking Bob be SEC call you, for factors from in welcome, on will or to cause Financial Aptar's President, and are filings Vice quarterly Officer; brief contained statements. Actual Kuhn, we'll the the statements. discussed Secretary. outcomes projected call today's few from differ Bob Stephan begin Information forward-looking could Howard, refer those or Executive Executive to and actual our or Stephan could performance. overview Tanda, up review includes President will those discuss then the projected

our of I We undertakes would will therein. conference replay to to a now contained no over post call like this turn website. the statements Stephan. obligation the Aptar update forward-looking to on conference

Stephan Tanda

Thanks good morning and Matt everyone.

saw three you segments. of sales each growth in our reported release our in we As yesterday, core business press

difficult Our sales third some Pharma significant was a comparison up custom year this segment to a segment the year tooling as prior against quarter, reported ago.

sales. devices However, strong tolling demand last our and delivery components our end summer the market drug across in each industry-leading offset decline of

in also markets. reported Beverage And personal & Home both sales our Our the market. growth care increased posted segment Beauty care to sales end segment primarily home & core growth, on of sales Food

will was our progress several transitory including Beauty quarters we're facility Europe. new & positive the the it Home operational seeing before take making it negatively by impacted several of the factors, remediating although We're Turning results. credit in situation, issues in segment's operative to profitability,

prior on year devaluation margins. to relative of headwinds were and operating Argentine peso Our also material the costs the the

actions Beauty returning business profitable drive we're on across focusing of and last we're process discussed & the on the change. growth several sustainable the Home As quarter, in for initiatives to through to working

our We will be quarter sharing our fourth information more results. progress with about

Our fees. in than year, higher higher expenses the primarily due professional to corporate were prior

share the recognized packaging, earnings Natura, would its Deo is personal for the to [Indiscernible] due cosmetic XX% new sustainability a foreign cap. quarter into more to different tax includes were perfume top makeup our with impacted In Our settlements. shoulder few I will products items kind Europe. over year, discrete driven. we market, prior fragrance line improved had several and [Indiscernible]. pump product the family The certain recycle with and moments, go primarily made post-consumer introduction in a cap were in custom has call with quarter as which tax global liquid per it's what that you. In the an in launching on featured interesting a element And detail our care on integrated We benefits Bob the for pump, fragrance spray cat market the Gucci like new launches called Bloom. share our Also, Cody by bottom-line. reduced extension this In featuring beauty men, Brazil, of to that [Indiscernible] a related

shower applications. to technology my products is SimpliSqueeze for on scalp soft tips planet. I gel with featured line custom our by valve a found flip on And SimpliSqueeze new love [Indiscernible] was direct closure concentrated new Our called are of haircut applicators

North Super oral expand whitening America. We also continue into to the market our by Smile featured airless with care pump now on the is in toothpaste

is actuator across is new North America. defense to launch starting care, our on odor home a aerosol in Finally, featured spray

the start a unique our metering our including Narcan choose prescription continues in future ophthalmic was America, dispenser in treat a Russia allows formula pharmacies in glaucoma, Our perform North ours infant unit actuator America. as for business Latin suspending all bag is In Johnson melatonin dose by healthcare propellant-free for that product products intraocular liquid in of valve chosen and a first that dose custom our first a Nutrition water the Kroger well. featured pressure In beverage closers several of to related food on used suite by X,XXX valve in fluid the oil In found more will Latin Dasani product featuring its nationwide. to featured Walgreen, than Aptar's spray a closure pouches have of valve announced Coca-Cola. was Mead version very Pharma indicators is for market, And America, XXX-degree system the reminder, featured And recently one-liter sports Asia be in technology, In form. Water on can in market, was no-spill our now the baby valve time In consumer to our spray. bottled in time SimpliSqueeze push actuation a and new America. pump to that spray with on found a Europe. on on launched North market, we spray cooking market,

dairy cream Finally, Mexico. with valve our on SimpliSqueeze inverted product the is featured closure spreadable first in

anticipate quarter, to we growth in look segment. the we each As revenue fourth

Beauty and brands, are & life as margins to the our we across likely user headwinds profitability are costs did exist the closing, transform impact to brands. that experience material In impact committed expect product Home adding continue bringing tangible to categories, decorative value consumers, the to before negatively from we our and to dispense our into facility well. However, not

mover to of turn and and I to for more first by will providing financial benefit with industry revolutionize dispensing will safer innovative, Bob, continue details. consumers the who advantages review this customers At to convenient continue it some time, will our our over Our products. solutions will

Bob Kuhn

I'll In morning Beauty our and our segment. & looking Thank questions. performed quarter, turn you, cover for business start good will how details with I'll at over Home everyone. Stephan and segments we few briefly a the in then it

saw As increased keeping release, constant, you our in core press currencies sales X%.

resin the the our Beauty And segment Home to Looking This decorative the in care was in year's due market a be were approximately currency XX%, & were sales below which that sector. for decorative I timing market XX%. at solutions EBITDA component prior to the custom we about margin that had beauty of by to an million. Core were stronger prestige Core metal higher increase at is at issues $X facility pass-throughs tooling sales due will increased provides negatively our X% and basis. of X% the home our about an referring the $X product margins. quarter, operational Core by transaction Latin facility to million. was look costs to in market sales to fragrance mostly in that margin care. America the currency losses the to automotive Europe to impacted Higher increased at accounted challenges Margins When million, year, profitability, and the personal due market. and additional sales material of relating cost the sales lastly, flat. of that in growth $X on body in an market costs relating care for EBITDA to other the cosmetics prior sales from primarily million, $X constant

an by difficult the the comparisons sales primarily margin segment achieved Core prior of core from had driven consumer attained of million metered primarily the prior market to we even sales sales increased market year. increased due for tooling X%, with Pharma due tooling asthma large the EBITDA $XX exceptionally and in X%, growth the and dose decreased to healthcare prescription sales year Our XX%. our inhalers X%, COPD. for to demand the Core of

sales finally, sales XX%. sales, up It good to the Beverage's XX%. a EBITDA margin product Food sales X%. year increased & remained & XX% Food also quarter And Beverage core for a was core comparable ago. increased injectables tooling, only where at Looking segment to our very were excluding market core

market XX%, just been project Looking condiments primarily and it sales water beverage we product tooling Tooling sales market. higher market. of of used sales, for demand isolate each to and high continued growth. beverage million the in the the accounted in core a for decrease prior been premium market sales to product to had bottled compared foods, If remainder this the $X granular increased we bottled for year. approximately sales the growth custom to level water not relating due were the specific the of tooling due X%, at to total up primarily food X% sales increased a have would for custom closures market, on and a for Core

related our addition $X higher to consolidated headwinds advisory professional services approximately million. of the were previously I segment earnings by impacted negatively primarily outlined, In transaction to fees, margin

relates a to impact adoption a had capital cash $XX first primary million to operations decrease in that quarter and ago. cash million, including to flow the in on nine approximately tax increase expenditures foreign expenditures flow benefits million $XX to $XX The in free a and tax to per the has $X.XX an for free million positive flow the cash Cash our million, $XXX certain compensation. our compared were ago. the to $XXX approximately earnings approximately in increased Through the capital a was standard share, $XXX recognize $X.XX a quarter also flow from We year impact compared quarter. accounting share related in free based a new reason million the months, impact for was settlement year of relating

under we program $XX.X million. share amount authorized million. shares is in for our The quarter, repurchase repurchased our current program remaining the approximately $XXX XXX,XXX Regarding approximately

Considering full this a XX%, balance EBITDA. our be one we year compared million. current to XX% it in levered XX and basis, the remain be net expect will on $XXX times over slightly $XXX approximately also months growth our sheet on at rates, for approximately to and debt-to-capital million basis, Net was a adjusted trailing Looking capital we expenditures to capitalization amortization approximately exchange was range. depreciation while

which our expect and tax to method. estimate be to stock-based tax for time, of accounting $X.XX to the answer At for an potential the your we XX.X% of effective the to Lastly, includes would any Stephan of the compensation related be I this XX.X%, questions. fourth rate range glad benefit quarter

Operator

first Wilde the line Capital. comes from Mark Our of or BMO Instructions] [Operator question comment from

open. is line Your

Mark Wilde

Stefan. good Good morning Bob, morning

Stephan Tanda

Good morning Mark.

Mark Wilde

think impact about be First we is, just had the fourth resin question you from the to you as I quarter? expect quantify can what

Stephan Tanda

reference, about look Mark, volumes a It's quarter of particular But pass-throughs, timings I in pass-through slightly quarter. fourth the cost, that the of right Beauty resin customer million $X if now, as segment. to primarily would different and the mechanism. has the we third Yes. double on a our customers as based And the & in the expect we estimates, each challenge, the always headwind about on a to had the Home be because

thinking could million, that we're volumes customer and $X about but depending So, mix. again on change

Mark Wilde

My the on out of pipeline if you the question update areas could since kind I kind wondered focus what and kind you? fees, M&A second right are of of now Okay. you called the for us professional just

Stephan Tanda

We at in opportunities us, Mark, look end, Valuations determining Yes. a -- across active in really value disciplined segments. remain all obviously, opportunity environment. to we opportunity And what's the are acquirer. look the there's see the we is front a very our of continue do creation challenging. with of

do just I our But transpire we looking here quarter when all we're segments. certainly, example valuations won't and deal. the you too third see frosty get of think what is in across that, an the

Mark Wilde

turn I'll good. it very Okay over.

Operator

Thank you.

of the Ghansham next Our Panjabi from comment or line Baird. question from comes

open. is line Your

Ghansham Panjabi

morning. good guys, Hey

Stephan Tanda

morning. Good

Ghansham Panjabi

First whether up, truly any a Home, just these incremental different get the trying these to launches products perspective? would growth what than is a are in year? you & of in that magnitude to in new the given I'm are of a sense you referring see from Beauty

Stephan Tanda

& profitable Ghansham. Certainly, Yes. Hi, Beauty comprehensive return is Home effort. to our into growth focus to

high As the with effort urgency Day, you first. in Markets we started we Capital this commercial had talked we to and

on would I call Markets we product you contributing see is out back to shoots certainly growth that green and So, Capital if us certainly of you Day. first talked summer it's get launches, say what track. And our that the sign about the a the over

Ghansham Panjabi

helpful. that's of then Okay, in pharmaceuticals. And just terms

core have Last was three of regardless. XQ. sales you in How in should that mentioned comps segment? Pharma it tough you in think sub-segments very have you for from three we about perspective segments that light strong You the had, a quarter the year year, fourth

Stephan Tanda

growth can certainly remarks, you've we will think that far really we core of tell each this my that sales the I in four say at heard as includes segments Yes, quarter Pharma. that moment, show in then as

Ghansham Panjabi

Thanks. Okay.

Operator

Thank you.

George Our next comment of the question of America. Bank from line or comes of Staphos

open. is line Your

George Staphos

the of on other we as so question Hi details. And Thanks out progress and to you. holiday just, Good around everyone. for perfume the similar products, Thank is just sales this that congratulation seeing and showed you got in far. outlook shipments? a morning. was what My that Are first to look launches? accelerating. terms at your the backlog the build report juncture is in GDP your We economy start

Stephan Tanda

want we've the far purchases, guidance go for think to course, can the given in have, as an as will say, Beauty we hey, well where beyond me at we Home segment not beyond that. really tell bodes for economy don't I Yes, also the the growth improving & go stage QX. Certainly, sales let holiday but of

George Staphos

want from The more just quarter that comments in by you'd segment, it you about keep said last brought position shouldn't a anything level other quarter. think, we negatively Okay. here Stephan, I up this But to than only high reason I talk to fair? would it be so your be a read

Stephan Tanda

be fair. that Yes, very would

George Staphos

appreciate the that Can that. you would our a of least And be comment Asian about the behind bit four, on market is at could I impression out, now guess, provide hurdle gone trends it all that that's a color you bit like a wasn't you fair? your five you Given it more quarters? I it that? really back, been patience was, seems and beverage called at with Okay. for it's

Stephan Tanda

not we Well, minus. or Certainly, by expect we call lap volatile end lap still I decent what the year. the it expect last that But as think the is out plus George, year. has it of that end been somewhat will on we of a to the remain this the by quarter, this to said situation time to the

George Staphos

There's preventing still competitive in there's quarters pushing you activity, more that that over. Is Thank operating regard? that standpoint, from the recent years. bit correctly with little competitive Okay. been of that you & we at it price that's turn been you And guys. material over. through perhaps prior then all materials? acknowledgment in some lastly raw if standpoint again in Beauty lessened Home, headwinds any increase than offset and that has it I'll some to be turn activity raw may along the a you the if an framed, case, need I'll it have in felt Or

Stephan Tanda

the we into been been Day that I situations Yes, in pretty Home some transparent in talked there's no Beauty us I be really think from & foot discipline Capital our we've on foot back change that. change pass-through pass-through, into and amazed in last, pressure in and about the and get to seen the are coming competitive intended still industry, I'm when on increases. Markets all haven't feel about good any shares and back this quite lost we've the called the the to doing indeed, resin To resin and ability front honest, efforts we're

the that But I think future of Of very is that established. it course, the this curve. other of well goes we is side all from know also the industry

George Staphos

you. over. turn it Thank Stephan. I'll great That's

Operator

you. Thank

line or the Our Deutsche Bank. comes from question comment Debbie of next Jones from

Your line is open.

Debbie Jones

good Hi morning.

Stephan Tanda

Debbie. morning Good

Debbie Jones

of quantify come sense Europe in you that. called you that us in quarter. you highlight what $X off know you are does we But if what that able for full out having the And think issues? you And in the if magnitude a to for give in the Could XXXX? guidance much could QX, have how you impact? million then just as facility I just year, could put of in the

Bob Kuhn

a out amount the an would we fourth to put not put of quarter. abatement emphasis a we going quantify into Certainly, to impact. just expect that the and We're But there. certain going focus still what baked the it on number not the We're haven't we that specific is.

Debbie Jones

right. All Okay.

But The you second how average us to sitting comment right right is balance give keep rate about how it can debt sense there? for do. much It's you really balance. there? question, going just want higher make I your you billion sheet. have a of that on cash all sense the give and addressed you're it not I And your $X what you it keep of does about the And professional make realize kind exactly realize to to long-term now a than us long fees on but that sense don't attractive, cash to sense your

Bob Kuhn

Sure. growth. I like mean, use we certainly as would you able sales that internal know, M&A our core to for to both be and in investment activity

we've negative that right; more environment at was in Europe had. you're look rates. is, than interest But you all earnings to If previously, it's rate and what that it was zero interest really money ever sitting

bring to And a U.S. we we're we're that's made able earning about on safe that borrowings X.X% flip time on paying From the the over what were in perspective, we X% approximately side, it repatriation deposits to that So the to sense. on secure had.

the a would do to a from a to mentioned put when continued doing. even pure So, going U.S. on far But reinvestment we certainly, into my borrowings made And Stephan about talked pull always I in sense current our continued on it what be bit our we're into little evaluating looking our does and goes first as as buyback. as financial frame gives ultimate also sense, that target that. obviously, comments, what it we're time we're is trigger well. share flexibility can that it consistent facilities, M&A own in us

Debbie Jones

Okay, it I'll that's over. turn helpful.

Operator

you. Thank

Adam Our next Josephson or comes comment KeyBanc. line question of from of the

may need unmute Your to phone. your line is Josephson Mr. open. you

Adam Josephson

Can that. Sorry right? you about hear me all

Stephan Tanda

Yes.

great. You sound

Adam Josephson

your experience? your can morning. out you with they us of views which remind of at in acquisitions large Stephan, frequency and the the Sorry. good Bob, work least Stephan,

Stephan Tanda

glad Sure, to. Yes.

that and least the at to then So, synergies. against bolt-on what you allow clearly deals quantify organize I really love is

on higher much and higher transactions I very that profile. transformational have think they So, risk clear are the -- large statistics

So, I and in views the my that we hasn't turn that changed or before deals experiences hasn't the that. my changed responsibility. large out around just my And transformational career, certainly tends And as some think ones. on been on discussed under to ones so XX better XX than bolt-on

Adam Josephson

what others. you Bob, couple A really Stephan. your Thanks in assuming guidance?

Bob Kuhn

the rate spot The of at was which quarter, the end XXX.

Adam Josephson

XXX.

This a for elsewhere. it then X% up you was company last one, beating of back do and Home? better have rate year, markets? year And what EBIT get there to not to issues historical last What been speaking, X%. it's year-to-date just better number Broadly of obviously; EBIT Okay. think you & in Beauty execution Is back Is just company's your most historical to take end to will is the it it growth? path? likely the get

Stephan Tanda

May off. it be let me kick

at with that's to a covered think urgency. bonus be. if the Markets across Home have covered wanted Beauty that our facility back of European the excellence, mean, main get sense does we're gap, and you we to what compressive that effort a go the I to on Day, a half doing has got of need challenge I And performance the high up decorative back on where to thing Capital company as fundamentally, we rolled We all track we commercial SG&A. We sleeves improvements the the sites. operational &

and help that. And expect also going do really So, we effort. the total wouldn't the to for that certainly to where that go back with give company. we with that you also effort, be we're it get didn't should And that will business compressive we numbers is results, certainly, QX

Adam Josephson

Thanks a Stephan. lot

Operator

you. Thank

Wells Chris Our comes Fargo. from Manuel from next line of question the or comment

line open. is Your

Chris Manuel

Good and question. you thank gentlemen taking for morning the

and you I the million was in what lingers? again going into sounds how magnitude? that I sense the anticipating forget it before kind it a fixed as big Could just decorative and think long kind XQ, there? what's resolution is in remember how to -- I issue out again us What like to the was a its the and similar commentary And of give your issue, you is, maybe the called $X facility that XQ of First XQ. happen continue you from anticipate

Stephan Tanda

me Yes, let remind and of kind step back everybody.

in to team basically that and and major put the one product market. happened greatly together would take of the the product it was So, there underestimated facility not there. booked is what with complexity what had it get being we its pretty facility well products And brought whole that already the the are other the that knees produced and on to an that effect launch

it is substantial challenge. So, a

in to the impact, QX the to not we quantified, and think just all be customers still will the better but you we're far product I our have And product QX. getting obligations, at it the wouldn't away. haven't but we what meeting go make we're saw off obligations,

the corrective So, with it restages. abate quarters to work way the time, will us product it will its be actions. take But we over as will impact out. take several Obviously, until

Chris Manuel

this is So, that just could sort to you if clarify, something product years through stages, or--? of that have I mean, this be

Stephan Tanda

make will it. some No, I certainly declining to improvement would say we a be impact,

I the think we year, out of with of a by should that. end be next few quarters

Chris Manuel

of us I of rate? you're some we Or in one? my was of Thank are the of this back mechanics, sheet drop corporate the I Okay. question of kind there Was a as have impact? what's differing that tax but road bringing in could change the was, then a What down kind kind hope something you. I guess. makes thoughts a you seeing balance repatriation recognize tax the if be a there? acutely And follow-up do aware, last the Or well, the anticipate event understand I much quarter Just so money?

Bob Kuhn

So, you'll outlined and fact, there that impact a we're was Q see to in tax going in file. that the

much tax would we but disclosed be. impact what than a it less So, was as historically what have to there

much than So, us the XX%. less if X% say, anywhere because mechanics let's to crazy impact rates where time, X% that the exchange the the XX%. in tax were costing you But remember, at and typically of was repatriations between, were

we coming hedge bring did back, we to take that since large on a it once commitment that, hedge offsetting a the out did we was made back. So, number

against took us. Now, out the and kind hedge, committed of time the we from the went exchange rates

a the though a we had Fortunately got that hedge we for. on deduction loss

very, in it's it much net-net, at see what tax manner tax call, compared a the to won't still cost so would I historically came have line. So, efficient us. would through it But you

Chris Manuel

the I Q. the Okay, will for disclosure that's in helpful. look Thanks guys.

Operator

Thank you.

of or question the comment comes from next Stratton Our Research. David Lakes Great line from

Your line is open.

David Stratton

Thank chain morning. you will needle a at and better Walgreens. And regarding to the I presumed one for taking mover accessibility for question. moving supply as gain of the Good be you you country? have the just Narcan a would

Stephan Tanda

Yes, I certainly, think follow makes pickup therefore, first get news, if play it it obviously, much opioid of there's country broader the think and help step, clearly in Narcan our in our being overdose. a sense a tremendous the a it they without availability out Narcan quite behind own responders counter. if save call think that you that And sold. distribution epidemic can more help And also and business this prescription, stuck to in clear is major nevertheless, important. is will I will can it's But people's when a only Narcan the lives having is you which be we the

probably have personal basis it on think a potency should get if I at that home. people Narcan more high painkillers,

David Stratton

Right. Is Aptar pump? on every single Narcan

Bob Kuhn

going the acceptance expect of clearly, forward. of choice like would are would certainly modified and the dose, and there alternative think the of our some think I convenience we old rapid some methods syringe and our out device unit there, the are ease-of-use things that the I that. still be that But,

Stephan Tanda

to had inject generation. pharma ingredient I is mean, the and it you and think then you water about reconstitute it. with in third used it, the to really this When syringe be the

can And this take to several unit it that. minutes nasal responder administer device, without would much with just it first dose training administer away. you right So,

David Stratton

you. Thank

Operator

Thank you.

comment comes line Our Brian the from next Rafn question Morgan or of Dempsey. from

open. is line Your

Brian Rafn

Bob, morning Matt guys. Good Stephan,

Stephan Tanda

Good Brian. morning

Brian Rafn

Can [Indiscernible] but on just ask question kind the the more break kind a pipeline, side give they're at of cosmetic market And me to mass doing? maybe tranches, premium as the Christmas perfume different for prestige how going side. two was perfume I of sense to out about I'll the site? the the you

Bob Kuhn

general, I relatively think in business fragrance mean our flat. I was Brian,

which the is due packaging fragrance decorative flatness decorative to for we mentioned providing cosmetics. some for primarily think primarily I also facility, prestige the as and and was

we're still in I a the fragrance bit category, But take So, full I little mean, that is in in mass you think category if okay overall, side. prestige a as doing the quarter. down

Brian Rafn

Are issue? thought, those markets In themselves Okay. modestly are markets that you changes a in recovering they any those seeing end economy? in -- tepid decorative are ex end significant the

Bob Kuhn

but see an have beauty starting look I at to market it a Brazil, improvement is which heavy for to geographically, in we're certainly, us.

we're to would a say in that I going nice So, see rebound Latin America.

Europe of going along way about not talked fragrance think And now. relatively as I a the is We're U.S. calls, has the chugging past now right quite kind extreme in or while. in to one volatility we any other. seeing been flat for

and would Latin say, positive the for relatively Europe America, stable I So, in U.S. being. both time the

Brian Rafn

Okay.

robust launches. fairly product You guys had line

any to or product in shortening? then a of or three-year two to shifts cycles regional the historical, legacy they five of units? And And are Let cycles lifespan me seeing reformulations? millions the product from the I seeing are lengthening ask are international Are tens the or be more may eight comments, think Stephan's those in you of focus? experience launches or millions or changes from you national of units of any or

Bob Kuhn

that brands. indie one are term each of of in would can't is seeing thing launches the the I talked seeing, Brian, speak one I we surge to thing we the about. kind what that mean, we But Stephan a one are

of to So, channels type volumes people smaller more some us for By more to products closer new and becoming through are e-commerce creating and that. being definition, Amazon new smaller those start-up customers, customers. important It's and like things these be with smaller. distribution typically

kind like of they of an the eye-popping to like have gate. the innovation; right So, product they news good is out

would past also I neglect are more things in are levels are much launches say So, that. and about terms the can't inventory general conservative customers as those. were in than of they volumes we overall, in concerned like still

systems not in there's just-in-time customers in that tens just I that upright I an methods that at shipped method. expectation of mean we're tracking there's and quantities general, a time. such of improved inventory our think more in millions

Stephan Tanda

is, the that add retail environment the Maybe customers' also consumption is our decreasing. mean products. thing for I that shifting could is the one doesn't But certainly

the you to also get of that or or classical Alta, now, store used getting a haircut where what getting be and have in So, can you in take purchase department people retail format, an more the in in classical makeup care different a experience. a face also Sephora U.S. experience

consumer, of mentioned ways. as still consumers product probably kinds grounds. And are environment. these The in important of for in different they're brand Bob Asia, gaining fragmented the we've the in And premium is and retail more then, retailers course, in to travel very getting particular So just it, brands. said, getting

Brian Rafn

Got I the you. visibility there. appreciate Hey,

ask on one just of M&A Stephan, kind me Let your more question, philosophy. it

million dilutive, basis? above be where sensitive. can have you If talked it's at $XX acquisitions in more but bit can bolt-on your $XXX front-end guys a more you you you things have margin cost you with you on little maybe that multiples million things sales Are injectables, years finding containment, of sales do bolt-on premium size where the you -- rapidly can maybe sales, the little five where are is done interested more expansion you like a in in interested more pay acquisition, grow acquisitions, about you look operating and in on

Stephan Tanda

about back Clearly, you and talking me can up. bolt-on that synergies substantial indeed footprint was operations talking I things let acquisitions, fit about I cost was with when Well, have together. where

on have cost the harder the us synergies synergies. are been a of to around all block, execute sales lot think I

be rely the a millions. When of don't make sale there larger to innovations, But innovation-type talk talk certainly it So, Kali hundreds completely would for deal single-digit comes pay. of Care story. kind wouldn't a to the for also example, With synergies to pipeline, that's on millions investments, good you investments. early-stage category different about want bolt-on acquisitions we in

Operator

Thank you.

comes or Our Blair. from the question William Jon of from comment next line Andersen

Your is line open.

Jon Andersen

Hi, risk kind risk opportunity question. for end opportunity online the as you it if about some thanks a in for how from migration Stephan, And that see what wonder or and novel And bit, think could broadly comment you systems? just to just business an of extent of little of your on to an volume perspective? dispensing markets. your

Stephan Tanda

track about whether pharma most trial But the being of digitization down see the about where of in talked outpatient We've segment. devices, terms drugs. the we It's setting by the depends take when take road so clinical or a whole care distribution. in we really they this really it's folks and you stage see transformatory. connected in in where the not it's as can the whether change drugs much take the Obviously, potentially Yes. setting it's

look you may when -- at Although today's change. deals,

kind of look that closer It also in is Amazon that sure closer the that transit. Amazon your type route gets make talked that with performs and how we engineers I beauty important and question at Now together of shipping we in opens the innovation. product when us how care, transit before you that an care, of homecare scenario, can performs package work home was think very to to to packaging particularly in

retail compared the environment. I think a and at times two you're e-commerce of an steps to classic Capital half number the Day, a the Markets environment in handling if highlighted we

almost And I So, Beverage, in same an that for see innovation. as Food story. & the opportunity

Of but I groceries course, for can that not delivery certainly, rapidly home the shifting coming beverages type online format. of our But down of road see it's as also. with

So, segment. differently that but by more it us, expressing see opportunity overall, than for I

Jon Andersen

That's follow-up. in from facility? for progress America? could Beauty towards are you to on respect just New shipments comment with & helpful. then Home One if new recruiting Congers, leadership you the York North commencing business the Where And

Stephan Tanda

Yes. Sure.

Home, from He French-English-Canadian operating Markets balance think I a & commercial, leader North experience, the mentioned the bilingual, but sales has marketing we've America. new we good also comes onboard Capital Day of on kind brought national. Beauty that of the between industry,

With customer expect ship So, and year, before. running. the of the we to no ground by to the what Congress, well the still end change respect culture fits validation, said from validations And into the we ongoing. hit very are there's

Jon Andersen

you. Thank

Operator

[Operator you. from George have follow-up question Thank a Staphos. Mr. We Instructions]

line is Your open.

George Staphos

Thanks. Hi guys.

follow-ons. quick of couple a Just

the in on at each what broadly down, the presumably is the think First will fourth toughest of margin perhaps & of of your segments still each looking directionally the recognizing issues you that for trend all, in you're power for clarify you call, just because or And again the or outages quarter, to dollar this growth apologize comment core in that you in it margin just of Last that. in would up the Home Thank possible Beauty is in be segments non-event helpful. it thoughts number mentioned housekeeping, decorative the on that mentioning recall but one. I to that question China, be you quarter luck I'm don't became That's facility, I any good did guessing want then a advance. and quarter.

Stephan Tanda

of China. me that on time so China. was it obviously, weren't that it and Basically, That's know the the we the factors but talk Yes, it. But at for one that we easier may about was it transitory let that's highlighted we didn't [Indiscernible]. be

Bob Kuhn

we But that tell Yes, on we're can some not our are think where go. typically we that in and out going the QX. headwinds similar we margins going margin, I see QX go to you give do guidance George, in saw to

still & we Home as on mentioned negatively expect Beauty results. So, way already, we the

in what expecting an input are they cost negatively increase We really QX. than in did impacting more

to those So, types going of in. things weigh are

George Staphos

guys. Okay. Thanks All right again.

Operator

at Instructions] I'm back to remarks. additional Tanda questions closing showing conference no over I'd Thank to [Operator Mr. any this you. time. the turn for like

Stephan Tanda

Thanks catch everybody with bye. and Appreciated QX the for us. good the call joining you up on

Operator

thank program. in conference. today's gentlemen, and participating concludes the Ladies This for you

a have Speaker now may You wonderful Everyone, day. standby. disconnect.

AptarGroup (ATR) 27 Oct 172017 Q3 Earnings call transcript