AptarGroup (ATR) 25 Feb 192018 Q4 Earnings call transcript

Company Profile

Participants

Matt DellaMaria	Senior Vice President, Investor Relations and Communications
Stephan Tanda	President and Chief Executive Officer
Bob Kuhn	Executive Vice President, Chief Financial Officer and Secretary
Daniel Rizzo	Jefferies
Matt Krueger	Baird
George Staphos	Bank of America
Debbie Jones	Deutsche Bank
Edlain Rodriguez	UBS
Adam Josephson	KeyBanc
Anojja Shah	BMO Capital
Chip Dillon	Vertical Research
Gabe Hajde	Wells Fargo

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Ladies and gentlemen, thank you for standing by. Welcome to AptarGroup’s 2018 Fourth Quarter and Year End Conference Call. [Operator Instructions] Introducing today’s conference call is Mr. Matt DellaMaria, Senior Vice President, Investor Relations and Communications. Please go ahead, sir.

Matt DellaMaria

welcome and Howard you, everyone. Thank call Participating and Chief Stephan Secretary. President are Executive on Financial Officer and President, the Chief Vice and Tanda, Executive today Bob Officer Kuhn,

well of results our our website. press copy that on a find slide presentation can release You as as a summarizes our

We post of a this the call on will also website. replay conference

contained actual information our conference in update those review factors to Stephan. Lastly, includes forward-looking some filings Aptar from statements. today’s forward-looking the turn to I materially statements. could the SEC now results cause undertakes call projected to the differ like to over or Please contained refer to obligation would to that call no therein. forward-looking

Stephan Tanda

and you, good morning Matt joining Thank thanks and for everyone us.

I quarter sales markets robust included fourth first, important to As recap results, region. financial results briefly the each that will our are growth that details topics X end on But year. of X comment inherent you an and our will core saw and regarding our in Bob part of strategy. geographic very like would we some a across afterwards, yesterday, I share few reported

referring is along If press to and that website, the posted X. now I’m to accompanies with release Slide our our presentation you’re following

sustainability. growth. is is topic by driving of The our topic first future interest The customers will that new level increased in drive this innovation projects

has the have MacArthur Ellen signed Aptar New Global that Sustainable seen World the joined we have Business Commitment Economy also and may Council You Development. Plastics for

economy. to closely customers further important and organizations work industry these stakeholders circular progress a underscores accelerate with our to efforts towards Joining

products the already post-consumer recycled be market that today. Some of found or resin, feature our PCR, closures pumps can in on and

dispensing uses the Ecover’s recently, launch PCR For Up. soap liquid of announced for example, called closure Washing we that a brand of XX% most

customers our with collaborating actively refillable on also are products. We

lotion by and are the our e-commerce Gamble. Procter & supporting key providing platform called participation Unilever customers’ to pumps circular We Loop in customers

XXX named of Most the recently sustainability U.S. Barron’s Sustainable Companies one XXXX by the Top as part of in their Aptar Finally, was rankings.

Another important topic is innovation.

prior dedicated and about implementation strategic business in excited the our you and a about discussions each our identify excellence in we group from to tools new each works opportunities have as priorities, and As methods of know team we geographic are the region. very innovation

to few continue to including that of explore our and our packaging part we like technologies, CSP recently ways that recent to active acquired interesting We of we connected new leverage examples innovations would market. share are devices. of a platform to growing I technology as bringing

will system. + these starting I first and founders due from owners gaining which with the our of within brands examples their Aptar are are players gel photo And connection help in expertise industry. business that prominence to our knowledge key chain dispensing, brands, on to indie direct so-called acquired, require many has indie brand dispensing brands turning suppliers. left product of or X, Small Cosmetics, Slide moisturizing The Aptar’s with the highlight to L’Oreal independent shows three brands more supply the turning beauty a the by features IT a Beauty lotion So Home Airless industry local to the segment, and indie succeed.

approval. push-off of The vial filling the various stoppers, everything developers. QuickStart and designed solution solution that caps from Injectables sizes, configuration high-value as volume next for needed of to regulated launched is QuickStart time our early-stage technical This documentation and needs well development start-ups, accelerate our segment, is we via proactively as our Pharma formulations website. sterile, to universities product that online biotechs, a Moving the recently solution including order for addressed offers small offering the to accelerated available ready-to-use

top from KEMPS to The squeeze of a we slide + solutions for packaging featuring shows as a on customers convert products, inverted example bottle Food format, their sour continue help SimpliSqueeze inverted our and sour Beverage closure cream. new cream, this easy valves. our to to dispensing such Turning non-dispensing their

As of and I we future in come bright our details on going we planet. With by for our focus sustainable also walk grow and customers a challenges manage for and over innovation through solutions and opportunities, look business committing results now who’s to Bob? afterwards. to back that, long-term near-term turn and will to we accelerating it will investing Bob, financial some the our to are

Bob Kuhn

and concerning Thank the everyone. some details morning I’ll of you, briefly walk results. fourth good Stephan our through quarter

can was published comprised you X%, refer and with impact than If X%. X% and you of of a from to sales minus positive of all region the slides growth with We we of impact press rates X. sales growth core currency end the Slide release, each acquisitions reported are following Sales That X%. geographic other negative beverage. increased from in across markets of a

Home X%. keeping sales, increased acquisitions core constant, As and press you + Beauty our excluding currencies on saw release,

growth household challenges isolated care of Core cleaners basis, impacted had X%. air and the Looking When on margin passing demand a profitability, timing personal due core segment to at look start-up at to increased EBITDA from facilities. for dispensing solutions and to other costs, of demand market we adjusted increased an care + XX%. facial sales home XX% by and rising dispensing care were raw Margins was through the increased material due operational the at for for Reboul due market Beauty primarily care increased skin cosmetic some fresheners. our headwinds Home negatively to demand for an market losses the for and at to color beauty X% sales sales pumps for Core baby strong core increased by sales care. mostly market body This products.

systems central market sales and Our Pharma demand segment nervous and an gain prescription dispensers the margin recognized investment, cold primarily pharma along eye allergy used equity nasal the Core of Core for system XX%, sales solutions our strong to contributed sales treatments. and achieved sales an for with the primarily increased of other increased sale and growth driven of due inhalers ophthalmic volumes, treatments. XX% on increased market healthcare EBITDA strong the core demand care for XX%. consumer The metered with dose margins. cough to to adjusted to by and spray the XX%, increased of

core Lastly, to increased the injectables market sales X%.

our affected Turning of technology. flat use of to margin This this and our + technology. due that Food the Beverage license the plastic prepaid a fee a has core license Margins in not sales affect related our lower quarter future prepaid sales adjusted concluded, aluminum of fee were had tooling bonded the an the to segment, to write-off is related custom were to segment EBITDA write-off to negatively by does XX%. and

spite and can market. to our the market, Home adjusted On due segments. for per share + sauces share each you sales well of $X.XX compared food $X.XX fourth rates. the that Slide negative EBITDA as lower per year-on-year X to including beverage X, dispensing Slide prior outlook. XX% at condiments market quarter Core decreased custom earnings tooling the totaled for in as to infant refers pharma year, Beauty to X% beverage due Comparable exchange the increased a for increased from see comparable our weaker sales the China adjusted to improvement adjusted about Looking earnings demand in impact in and nutrition to of leading XX%. products. solutions Demand from core sales X% our increased market our

range to rates, to share are XX% range to in first increase million year operations of expenditures an I and Stephan. We of $XX first to tax were quarter, approximately the quarter flow to $XX year XX%. other out quarter the midpoint I details was the a earnings expecting and approximately that the earnings have prior expected using cash a million, share the we range we share hand similar adjusted rate then exchange to flow compare $X.XX per the and compare and X%. few $XX per using approximately it $XXX like point for cash our for of approximately per In from of when share, be million compared $X back tax I’d to an million, our ago. will free was capital to represents

operations our free in the the our million $XXX cash decrease $XXX to compared and primary to year compared cash approximately acquisition million, million $XXX to The $XXX year, to expenditures approximately a from for expenditures were ago. and transformation. is capital was flow flow flow our related reasons restructuring and costs approximately capital relate higher year, cash For related to cash million, primarily of $XX business prior outflows million the

will provide XXXX remained EBITDA. move Looking at And while on XX%, few basis, levered before to gross compared At comments net XX%. our our was Q&A. a to on debt-to-capital slightly it was sheet adjusted less than Stephan Xx approximately time, a this approximately annual we basis, we capitalization a balance

Stephan Tanda

Thanks Bob.

clearly year. significant was a So, like a good a In It few our to I priorities. progress on a would strategic few quarter key We shown initiatives with and XX. leave XXXX, you end-market transformation key made our takeaways strong takeaways. business by we and on as achieved part + top strong remarkably excellent helped line improvement, with reporting Beauty organic Slide Home demand. our growth in also good

nicely well Beverage + target + range below Pharma and their slightly core sales ahead Home long-term grew finished in Beauty growth. Food Our targets for business and segments their of

restructuring to year our costs a the with related strong EBITDA when finished also improvement We we and exclude acquisitions initiatives.

ranks we activities. and quarter, development last and key external continue add executive accelerate highlighted strengthen our to leadership our talent As internal to

As part completed our of equity acquisitions investments. and balanced we allocation, strategic capital

Aptar our was to to our businesses. with half increased solutions. those continue to model is company will dividend XXXX invested expected resilient in recently broadest capital additional related In of dividend. our expenditures and XXth closing, differentiated including the paying business business Furthermore, so be very in with We and portfolio of related the year products, XXXX to in XXXX industry’s XXXX. we our new a a capacity also About acquired an for will and of do increased consecutive

these across is end is markets, discussion and diversified high-quality a economic potential a across slowdown. There about business across geographic regions lot of thousands attractive Our of days customers.

very with and then. our had margins are last to strong back-to-back great resilient balance should stable. diversity the look And recession economic decline sheet, with since to While even we become post-recession, to withstand sales slowdowns recession-proof, understand we not in are we that along need we occur. more our has to even the were great able our portfolio record We they sales, growth leverage our can only and

same With to do, we long-term that, open So and is unique with we it see slowdown business for a record our company robust while we just you tremendous a our your that clear, up as see tend we not Aptar to time, in protect. at like this read a to be track demand. the would do headlines customers questions.

Operator

comes first comment Instructions] [Operator of Daniel from Rizzo Jefferies. question Our line or the from

open. is line Your

Daniel Rizzo

guys. morning, Good

are you what’s assume guys through that I to to off I what was costs on customers your increase you now. and question increase for cost it the or seeing, mean, how quick of a pass leveled Just wondering price lag? this long kind I takes

Stephan Tanda

Thanks, anywhere period, that you have when by days time the XX Daniel. be Usually XX the trailing X because can to effect, make a quarter the of to the up between you months that get see now realize end the you adjustment, to to effect.

Bob Kuhn

input around and pass-throughs negative, EBITDA raw put positively by in $X at general and about we So context we resin. the quarter, that line or price in between impact, look from Beauty which primarily when the + a than predominantly about Daniel, increase the material other some Home million to X.X%. impacted But was have just costs top did it it,

Daniel Rizzo

what those with And we now? costs are seeing

Bob Kuhn

first Well, reduction continued in I we quarter, are costs. the in the resin seeing mean

we’re EBITDA the anticipating projection. so in first to positive And a modest quarter

Daniel Rizzo

is I could like you if it was on and your CapEx looks was color wondering then that provide XXXX, relating stepping to? bit what up in And it some a

Stephan Tanda

six when mean, now an or period that have growth you and to of no slow we expect I really some brisk growth, back, growth quarters extended Sure. of continue. we after step experienced

in to So, of some to we clients, shortages but causing that issues business to areas also challenges. our starting contributes only operational our experience service are several of not is

maybe demand the mean customer remember take growth investments So, to add to manner. the to I some returns provide we we more can these color can we opportunities capacity up investments. but in that best efficient ramp advantage ensure the organic need some an of generate, to the Bob of meet

Bob Kuhn

really initiatives, outlays opening well, these mentioned going to I cash be do maintenance including that to would everything have in expected mean, the about growth we type be And else remarks highlighted call and in and for some I in is newly Yes. cash investments. additional in spent expected CSP half are coming for systems XXXX. as outlays the Reboul XXXX the is, Stephan his acquired cash of more next year from XXXX. then normally in We where earlier capital have capacity transformation think with line I

Daniel Rizzo

alleviate just a to you want catch Are be? get year going going operational it take mostly long where issues to And to how to you to, final take? your able to be utilization to will it up question the pointed of kind to, I you is mean,

Stephan Tanda

put transformation. it let’s of the mean, I Well, the in context

the this was really you the four the fourth the all top operations and transformation has G&A If was elements, one then and impact about the significantly third and around in first second growth infrastructure. is to remember line one the factories, was biggest reductions, support improve the streamlining

this a at look You of can almost from point time it view. also

year be line first, top operations. If all are you improving the on focused this about accelerating will

towards need the and do of things the investments come end program. those of G&A the will transformation reductions Some

Daniel Rizzo

Thank you very much.

Operator

Thank you.

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

is line Your open.

Matt Krueger

good morning. in Matt This today? Ghansham. actually How you is for Hi, sitting doing Krueger are

Stephan Tanda

Good, Matt. you? How are

Matt Krueger

good. Good,

I you on So that region relates then provide further hoping detail the could added by volume could of of helpful? it XXXX pricing segments segments? kind was of strict core volume be versus your outlook in for you contributions sales for or And breakdown contributions terms would a some even your to as provide

Bob Kuhn

Sure.

X% when about I Beverage we X% and Beauty of positive the + line top X% impacting Food for that pass-through, + is the to side, on had of Home. So, about mentioned X.X% is then

Matt Krueger

the outlook? And helpful. just of then in terms that’s Okay,

Stephan Tanda

really we I for don’t provide Well, top guidance line. mean

better As and we XX%. but quite to X% has and not to driving gave few these range certainly X% to + to place for with to line growth to the the X% a quarters, of target Pharma in and company committed in for you some into top also we Beverage, of then Clearly, the now a yes, splits growth capacity where XX% is know, ranges, significantly a teens it’s our are quarter, Beauty + want we which shortchange And that X% X% customers. and every X% expand need yes. Pharma, guided for don’t done Food then Pharma, to Home,

there So by differences will be quarter.

Matt Krueger

segments a question and Okay, understood. for and guys provide as is recovery, trying progress Food your to + And on could next of XXXX? be turning can to added we for as you outlook kind then you across year-over-year? my margin Just through Beauty some Home specifically detail the the sense Beverage when corner get positive to margin

Stephan Tanda

impact on We to also Yes. to positively, line improvement. not top transformation certainly margin expect only the continue the but us the

So to + for + the year. over come Beauty expect and we expansion Home margin Beverage in both gradually Food would

Bob Kuhn

in Reboul comments until sometime about + is Yes. I Reboul. Beauty out Home last One thing I results the at was in in in didn’t come would that, I point + Beauty year, like think the second QX Home margin XX%. to And to startup my losses quarter. mentioned the

in relatively was have but be will then And a should a the pretty rest overhang where of speaking increase, mentioned, last should little the gradual bit moving losses we on those ‘XX. startup through first of close year. QX, as see quarter we to So Stephan we

Matt Krueger

both transformation And then question to you have Great. achieved initiatives into dig further focused to transformation, those XXXX on savings from factors a what the last where hoping as and business that’s we already my could of was these corporate the I little well? can for savings then and just the relates and segment, be spending your attributed. outlook I savings it’s know what’s those Beauty been + achieve Home what’s required for

Stephan Tanda

Yes.

up it again. break let’s So

that. $XX to expenditures. growth, plus achieve a a period, $XX So the over think capital the are is million EBITDA improvement X-year of line one-time biggest numbers seen impact from program, And you I costs X-year million fundamental top have

then We those have about year, operational improving transparent been cost improvements of away. are the the now about. operational that we the and are last year, the issues partially by they of be reductions of factories Nevertheless, And very transformation achieved will transformation I this quite detailing offset we end specifically. be few we’ve the a as goes the occurring. And more will addressing but those working these G&A said obscured obscuration towards savings that challenges some that and all are so of also

Matt Krueger

very great. much. you Thank Okay,

Operator

Thank you.

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

is line open. Your

George Staphos

possible beverage the that know, against are Thank you. will have plastic when and for issue from in closure year. China, at broadly for energy I in turn your I comps and don’t beverage you Hi, anniversary guess relatedly, if saying on everyone. congratulations about customers had should what first And terms we, water in probably, least managing their Good of of was all China? morning. etcetera? positive two-part. X.X this been I to issue? Thanks a the the to it’s the beverages, on of everything that kind issue details trends now more question years, in drinks discern When flat else, use for One,

Stephan Tanda

the you’re term the That’s the reality. with On question, topic being or kind very first managing.

George Staphos

That’s are, we how Stephan.

Stephan Tanda

The demand very on customer visibility the Yes. very China customer well limited beverage constitutes on but business, orders. have both the as we end-user as good a

I I it a of I’ve just do be unfortunately. storm it you I’ll upside So kind the to on a it, the since And answer, and will fourth downside, next before, compare. surprise which not and am quarter both the And this you cannot I’ve opposite. been better the perfect called might quarters again, anniversary business, going continue depends bet quarter was give wrong. on the so to that

really away, highest the one the caps off those how the big the or can question screwing single are eliminate caps flat question, Now of that throwing because on your in volume water debate with items is caps, ends up you the sea. second top big the the bottled

about countries closures, stays but in the one-way really with to that, with overall and, is drives here in technology back the that is come with where the be a energy-efficient again that cap the hopefully, bottle the some to sports we where with gets the more So lid also good theme customers Plastic that people and mean, with product, recycled already our all Lid drives Flip needs bottle. is I and the more solutions it a stays that product very bottle can’t cap market it street. circularity. the are to the discussing the

George Staphos

Stephan. So, that’s helpful,

your from and on on the from will they hand, solve recyclable of long resolved? as actual be use one comfortable from plastic standpoint that’s that, customer and issue what your which that less So and the is returnable consumer, and cap presumably hearing are are you bigger customers that the can the opportunity and on the it’s an as

Stephan Tanda

you the standard And you to around pay see Germany get as Yes. returned places return for long a when bottle, initiatives fee having like a has time. you that them been in

George Staphos

for you will terms at and Okay. not for you you the than – line trends provide, capital? Pharma, stands out, be better cash then playing sectors is of Can in but look cash packaging, not sure but the in with both redundancies outlay be two much out it it a the there And but this How relative within on are us My was other comment turn how injectables position your were year period were of last the of what and comparison perhaps growth, questions heard because I expectations? of am I real in kind X% transformation core cost and about I this did will in would expecting? you to segments that other the and I good it over. talk which injectables, was most

Stephan Tanda

that market is injectable though capacity a prospects. in bit be demand, a even be growth this the the demand areas with On to where That’s issues service certainly point very is with line a certainly little one continues honest. of of have good from higher we interesting area view. to market, But market perfectly

I’ll Now, it to turn Bob.

Bob Kuhn

And for for George, the cash were at looking you transformation? XXXX outlays

George Staphos

Yes, both.

then associated and redundancy can, you. it. capital other costs Thank with and you If

Bob Kuhn

Sure.

is million So what are we in total, anticipating for it’s XXXX. around $XX

George Staphos

you, Bob. Thank Okay.

Operator

you. Thank

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

is open. line Your

Debbie Jones

been side seeing And morning. out little it couple I good growth volume does seem to to are Hi, core of is expected know of on And in ways – to get from Beauty XXXX? or calling with I a in customers Home. are line in how wanted is? a the doing how last you the better should sales you the or you in this types some more are just of like raw we specifically, this other are I’m product what sense than sustainable quarters. trying are your the but + the go that materials, new back it’s and is you about you growth of are winning segment in seeing benefiting growth developments think

Stephan Tanda

both. really it’s Yes,

customer we more transparent If certainly in that allowed some win tracking a to you much and That had regain is business. lost things and we weekly contributor. the transformation, very remember, share kicked lost when of rates we’re off us being That has were basis. a the on areas, market proactive some with we some projects like customers,

demand will in Lauder of find consumer or them it’s read Secondly, L’Oreal is Estée or the whether LVMH, very consumer. phone announcement that. particular Beauty market earnings and luxury robust down of with Asia of course, We some you growth, China pointing respect our our strong. And customers, maybe all the don’t when read that the to automobile customers about don’t see segment. in headlines sales, to we And the the we premium while mobile from hear slowing Asia sales, you

Debbie Jones

look just be $XXX I I it be question, second tend level that the just I around My well, same running cash QX, in it as noting lot historically, lower you. your of kind is was is. balance If was it million. thank a that could normally to think Okay, I but

that was there I wondering time? if change just should So there expect was if to to kind over anything we note and of

Bob Kuhn

have and bit big the outflow but roughly in for out for transaction, had fourth running we peaked cash had $XXX million really mean, around balance we’re the million the just a I transformation in QX. quarter. outlays cash we for prior That’s QX little to No. in the that I CapEx increase the clearly had $XXX a was that in we and below and around CSP some had we mean, the of that

Debbie Jones

I will it turn thanks. over. Okay,

Operator

you. Thank

question next comes line from Rodriguez UBS. or Our comment from the Edlain of

Your line is open.

Edlain Rodriguez

Thank you. morning, guys. Good

Stephan Tanda

Good morning.

Edlain Rodriguez

Just in currency, for one cause guidance mean, of think expected, the cadence the we like lower of on a repurchase? is terms like us of again, than else to that’s related but pace? that of one your of quick share XQ, the what’s anything and outside sale kind clearly, should repurchase I have that little the most we should thinking shortfall and And like what the for thinking in of be

Bob Kuhn

expected, mean in that look acquisitions, offsetting What’s and your we adding $X.XX But $X.XX. performing per look kind little I startup were of model about I things mean, which into losses, QX. that hesitate one the to the as share between at what is $X.XX is So going we a was forward. CSP Reboul just of I in if first bit

there of maybe that. some is So

expect the year continue into goes slowly as I was I we then abate well, the question? earlier loss other As am that to go to sorry, what and mentioned on. QX as startup

Stephan Tanda

buyback. Share

Bob Kuhn

yes. Share buyback, so

slightly increased We’ve of XXth an evaluate had then about talked dividend. evaluate. little million $XX existing because QX sidelines as and continue continue the on we’ll bit they opportunities be spending in time consecutive on our were remaining We’ve of acquisition, We’ve year themselves. in got continue we’ll higher CSP on and paying M&A to QX present the to to a and then we the CapEx market time. and to authorization, will about So from we our

Edlain Rodriguez

the one, if you issue. metals now... see as sustainability So know, to that positive mean, the Aptar it shift do a from how for whole at you is do positioned end I the Okay. last plastics, And of Aptar, and day, see one there’s you a away paper? on negative or especially

Stephan Tanda

the tremendous all when you dialogue differentiation projects solutions, versions and accelerates assets customer bring as end see customer we have can our recyclable actually our opportunity a at products. innovate, this around And it a whenever new new then, of because creating We Thanks. of the bear. to all creating day,

So actually And significant to the high of they their Aptar pickup A lot encouraged of commitment. need by either companies them are contents. customers customer our driven commitments help in full pipeline project like packaging around or fulfill we that’s our have sustainability. their PCR by made recyclability

the course, earlier in this beverage in world, it’s discussed large a in today. are topic honest that not the player as we luxury in a where of beauty topic in Of is bottled And is pharma world, the be market it almost big the a non-topic biggest to also the markets. some we not water

player And we the We drink solutions are more market. in for specialty we sports a problem. offer as discussed earlier the cap flat

product I the This the including it if marketing has sustainable my be end, close LCA by it think that fundamental day. is most the realize but has the I think from recycled. come an recycle there an plastic, even the far is economics footprint, plastic engineering you will and environmental rule can to problem. it in footprint, footprint. from the put all that hat if environmental I But on, Now, nothing I to

Edlain Rodriguez

Okay thank you very much.

Operator

you. Thank

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

is Your line open.

Adam Josephson

Bob, Stephan, morning. good Matt

Stephan Tanda

Adam. morning Good

Bob Kuhn

Good morning Adam.

Matt DellaMaria

Adam. morning Good

Adam Josephson

of million, any flow Bob drag as $XXX ‘XX, you couple your flow, performance a working cash the cash there? And your cash was in just was there expected? free cash on capital in

Bob Kuhn

a number capital We It’s is as costs pick-up than to we out. it view suppliers increasing it us. would the the in our cash terms on we little in see But a transformation reporting is rather we adjusted where costs starting project we’re it in be was expected where the QX big would that’s in then And it we flow those payables be. forward. wasn’t to had all some prior to working say, where things overall, the We gradually an expected on there on we’re I pipeline to you year. the drag, flow initiatives move the I ramp-up than free and a what we had Yes, acquisition cash be. shock pay taking year. we bit really the knew for. number going to say the on came would reported CapEx, based higher it didn’t to

Adam Josephson

just the I you Bob, think said then And had you on ‘XX. so $XX restructuring in costs, million Okay.

in another to And you a to question, in think I expect million go so the... to that about response you I when ‘XX, back $XXX totals said million. $XX

Bob Kuhn

outlays. Yes. The also million $XX capital included

Adam Josephson

Right.

the and the million made $XX announcement, million you restructuring, million the call cost cash, assuming then were all when it of So, costs so of CapEx said $XXX you right? $XX that $XX million associated I of think total, with

Bob Kuhn

And that funded also of the we’re be there correct. now. would which improvements, capital kind we initiatives then That’s capital said and working through

Adam Josephson

So, post additional would the would be in incur much in costs? you that ‘XX, have terms of cost restructuring cost cash left to ‘XX how you’ll you the related the

Bob Kuhn

a cash we $XX Well, on outlays have of million. memory million, right, my serves me $XX if the

So, I that mean, we’ve got delta.

cash you’re I probably So, then on at million-something mean, $XX looking outlays.

Stephan Tanda

be some the bulk of end I XXXX. the into playing that with $XX million the done the by of will think year

Adam Josephson

projects growth you know the million, every in projects $XXX have you there, year. presumably And Okay. have on the I said some growth CapEx, Bob, you

given for given growth is it would that’s ‘XX? year just that on or trying that understand, projects unusually Aptar, than say growth every up So, I’m see more million you have an number, you normal-ish have in coming high that $XXX you is a to you normal it just would number projects

Stephan Tanda

trajectory you just normally, quite remind a to changed have growth talk we when want back, bit. I Maybe the

you the customers. a So, normal mean, to already, to be pains to kind in me what capacity in was environment is I capacity not and supply demand growth to when flattish it add add not meet the of need environment, able normal

So.

Bob Kuhn

that Yes. is of we’ve additional in capital growth that included CSP Reboul as well. and I mean, the and for got acquisitions then the also amount the both

that capacity So, lumping into the and we’re upside.

Adam Josephson

companies, opportunity appreciating notably you bottles in a sustainability wouldn’t just And saying, you expect not a you’re packaging associated And Stephan of hurt big water with and make only in Bob. most a those them, for my don’t just talked back moment, that bottled to other other sustainability but out of the opportunity just massive to aluminum sustainability. is Thanks water last sustainability pain Aptar, being one, get go favor. beverage. cans, so extent that that bottles, But you we’re water beverage hearing much about any for forms not that from the for you’re

us So, presumably someone of because in every can purveyor of square just this? get you help is would all is saying hurt why opportunity this seemingly, an packaging

Stephan Tanda

aluminum are switch this a stark. once or pump. needs the needs still bottle. we’ll you have have and on pump bottle so recycle then mean, I But versus recycle we to you the some make recyclable back, But It we the it then dispenser. to we’re plastic a the look, a customers to to either LCA pump comes I answers you wash from shampoo if in, numbers, And you even still plastics. you don’t It aluminum that a take onion, a okay, when if participate top. back going example solution, the Well, run Loop the pretty want aluminum say, so peel

pump or In can a pump has be that either So, that needs a both in multi-use it I aluminum a of very That one engineering. we partners cases, or fully plastic a go-to you. different is pump will guarantee a an be needs customer will solution. recyclable pump one are the that developing pump recyclable multiuse that, not

Adam Josephson

Thank you, Stephan.

Operator

you. Thank

or question comment Shah the from from next line of BMO Capital. Our Anojja comes

Your line is open.

Anojja Shah

still for because wanted only still that just trade you if recent come down they market any Is volatility? I targeting? area is climate you given in experience have to so, you are get what current your there, kinds a M&A? seeing are and morning. of for And asking, beverages some China good clarity. with seeing region valuations and Hi an I’m target the you’re

Stephan Tanda

Yes. I Look, a to peer mean, is the Europe. the and China U.S. to economy

economy going we table not we’re the customer one take off in So, at on to have that significant challenge in region time. And size each an anything. point

paint that happens with China be with country brush. it’s So, whole not the that this to one in but

on depends attractiveness. Now the really on the question, the valuation on specific target, it situation,

target a on think that but interesting. I be walked We months too we’ve quite have became XX other targets from been where ago, away might pricey, transparent it

deal other in is if own on target, you can people and any make locally. walk difference the again, away. ground at then the any that’s M&A, no you other you have important get work, if not, judgment So like situation. that you you there The it thing your and with make good you the most is look And

You cannot manage China the manage U.S. cannot from the U.S. and you from China.

You need people. we’re our and to strengthening have good people

ex China. We’ve leader a You’ve Wu added Xiangwei to com. our We’ve run to seen senior added we’ve Board. to Jesse added our Gong

If people, results have you good will the end. you good in have

Anojja Shah

in how to lot over, these, the then What successfully that out do Okay switching traditionally, it’s smaller you brands Because comments companies packaging And these beauty actually thank are serve doing brands? just think to brands. I a beauty small-run-customers? mentioned or you. been you reaching your all independent I for that you’ve difficult worked prepared do quite of smaller believe think you with think you’re you,

Stephan Tanda

Yes.

and than with shampoo we different commercial brands more with sales we that customers, remember we people large the started dealing to excellence the the people to early dealing but to to then, may on, customers when started be the have big that force kick our or of You tailored small fragrance efforts, had that the our our individual off needs segments. we brands different with the go-to-market force so frankly, sub-segment

from. cases, player solutions is where brand that one comes can shortens and we’re course responsive matter can or which brand in in slightly second significantly at products them cases, or customize with, all them. able take some The And world provide the many we so is indie what their can very indie that we that of we run and go to local stock around be the customize time-to-market. something no call not And

Anojja Shah

Okay thank for me. does That you. it

Operator

Thank you.

comment or Dillon Chip from line question of next comes the Our from Research. Vertical

line Your is open.

Chip Dillon

morning and of Good segment. don’t this not those an of gave us in the Bob. believe you numbers? you if gain Appreciate think included detail, Could a idea some were all just, mistaken. they give licenses Could adjusted you And another you I and but write-off earnings, a I Stephan I’m Pharma us in two in magnitude mentioned comments. the of the

Bob Kuhn

No.

those. both so Okay, I’ll take of let Chip, me

So, $X which on made the we to in an investment equity that million. XXXX. referred sold was approximately connected device is was gain we the company, in That late

XXXX. that. annual royalty our minimum in The on while on those And gain royalty was very optimistic equity write-off we of pipeline when then that we plastic. thought the in technology, but there contract going that the And we’re an a payments, to license signed recognized projects then the our the getting that in We get of prepaid related we get delay we didn’t contract, continues to volume the aluminum we out go royalties adjusted using by I’m eat not close had we to we had have bonds, the and end to So, weren’t we adjusted They periods $X.XX, in of fact, the a up in sorry, on numbers. the prepaid had included they that remain out. XXXX. we the period. our they all were concluded were in where

Chip Dillon

quarter? much Okay. the And prepaid in I’m how was sorry, the

Bob Kuhn

million. $X It was about

Chip Dillon

X% you follow-up stock is, second bought the shares. Okay. And year-to-year, like question then XXX,XXX your looked like about of the you during year, the your looks it

you And going count, $XX.X million. the mentioned about any buy to share you is quarter. think in the fourth didn’t guess I’m to up I

suggest through exercises. that Is options issued roughly correct? that that So were more would about X.X% shares

Bob Kuhn

Yes.

$XX.X we’re at there. numbers million. have quite us about not My close We’re but $XX.X million,

Chip Dillon

you. thank you got Okay

Operator

Thank you.

comes Fargo. the question Gabe from the next of or comment from line Wells Our Hajde

open. Your line is

Gabe Hajde

the there footprint? that on? elaborate of morning it And maybe you’re are is a more you’re you diabetes the the on geography traditional specific sort market? targeting for bit investments expanding Or or CSP application making with that the specific the if new end a taking is any Stephan, Thanks spread Good can in little question. Technologies to that acquisition. gentlemen. Is you this across

Stephan Tanda

in think don’t I as constrained, that We we with business to mean, we think fact synergies facility that that some into where to I’m compared we We’ve see investment priority level China we of comes Guangzhou leave have their opportunity based going get about the that’s of it. I see need in CSP in or supply accelerate And first possible. business, to pre-Aptar. soon is places plans been CSP open that there one online detail. where that we’re in our and to clearly, grow areas capacity for as I want Pharma good it the expansion expand further. to our we to Yes. will have which remedy an existing where some the

Gabe Hajde

looks us to just gears a at segment, difficult. bit pipeline switching know of And but either guess, more new the XX-month I Pharma difficult a could where inventories something if with could that in thing, they I little then, curious, was it’s, of any to horizon how or be the are. maybe or you and you products comps, helpful. help XX give looking become us I sort you thank that, color would like Alright

Stephan Tanda

Yes.

quite little is X to really build XX an put pipeline us X, I’m X, hesitating, XX the we So, months emphasis with a bit to our your years. built X, is pipeline. on for continuing Where

now is in putting we’re what So, there.

XX what’s very in XX is Now coming to months next out of the good. pipeline the

that that encouraged quite the can things or we’re that we we have, with So, pipeline see.

old nervous switching category, rhinitis need pill, from go more, of see pressure, from conversion driven some also drugs allergic we in nasal We to have we is pills the what injected sometimes, broader always larger part nasal allergy by device. is from system injected being being and delivery our forms through specifically of sometimes being case, spray to pill the continue increase And the to very because And using that’s by such that is blood you other increase, that example. online; approvals that disease. of is see for a or see in FDA business form the increase, the driven central decongestions delivered to in to Now club in Partly to strength. partly happen misjudged. strength But of distribution as by driven that incidence stores, encouraging.

and we the drugs of course, other you’ve that painkillers like system example seen nervous So, but Narcan, with also central going unfortunate antidepressants way. see

Gabe Hajde

Alright. Thank you very much.

Operator

Thank you.

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

line Your is open.

Adam Josephson

a Obviously, U.S. lower EBITDA Bob, fourth polypropylene remember you’re a to from quite the everyone. Thanks I the don’t resin. in in fell substantially first mentioned quarter in the modest you again I positive expecting quarter, you’re not, think you bigger benefit offhand. with me may help could one? me you Europe help And than expecting I why you means? can a don’t what be why But not modest with know, modest

Bob Kuhn

I much number a with sitting the a that timing baked lotion pumps. in. exactly pass-throughs, quarter, to I of is the how the volumes can I’m very is material in it’s in Well, mean, pass-throughs, that what’s raw not the is on that’s closure give difficult linked how this much depends their you linked calculation. the customers, It through

So, factors a there. of there’s lot really in

out the modest because to got we’ve rather So, number quarter an in what stick hang than exact with directionally, there. that’s try I’d rather

Adam Josephson

And Bob, on would what’s expect XQ you just those just beyond far, happened thus on based further benefits pass-throughs? based

Bob Kuhn

bit. to resin But on I volatility have it that typically lots and right? got beyond the catch mean, year. what the over happens it up the little of depends prices can stabilize we’ve I all is remainder on it for where when of see where again mean, years, depends we the the data depending QX, a we’ll on, goes

Adam Josephson

know Home on than Stephan, operations focusing Food I you growth. + about more line just and Beverage, on just on talked top + perhaps appreciate Beauty I on And that.

your expecting comments those from that So, top improvement? appreciably growth much did earlier? in line slower that segments but are slower infer better you margin Is I

Stephan Tanda

we’re And not to going directionally. got at think well. It’s really. savings you’ve working actually, on. a the No, just, very we’ve that transformation follow-up, a time thing one It’s it’s as

plants and I We We I’m so we able meet operations. trade-off. expand to, about very addressing capacity this improve they’ve hit been will obscured activity, bottlenecks I a as that this year. that are demand getting are speaking referred investments make are to this other all what busy so that’s we really those when but and to with see are operational don’t priorities clearly

throttle line. as the I on don’t So, We intend back to top that see don’t trade-off. a

will we the markets external have what from for top guidance the not our do, from the But growth. course, is doesn’t markets will targets Of away visibility our or will we line do. shy

Adam Josephson

that. I appreciate

realized EBITDA you restructuring. total just I cumulative to this, date? you’ve I much of How eventual expected EBITDA of but you said, and missed EBITDA have million the $XX if So, forgive know that from me, $XX million benefits

Bob Kuhn

Well, anticipated in weren’t question. started difficult I we’re terms range what’s when then and that by the probably a the mean, $XX tracked we million project. mean, around of in headwinds our system, I additional it’s offset

Adam Josephson

Okay. And all $XX those million, Bob? in Beauty Home, that were +

Bob Kuhn

some procurement were G&A that the some and around Beauty the segments, + the were of savings There across but other savings, predominantly some of Home.

Adam Josephson

Got it.

you. thank Okay,

Operator

you. Thank

Our from of Bank next Mr. from America. Staphos question or comment is a George follow-up

line Your is open.

George Staphos

taking for quarter. follow up. was In rate my Bob, guys if in around you’re calling don’t recall, out hi thanks was there Thanks, just the on. I Mostly growth, what finish fragrance, to the growth

that you on-again, the year, through you an see have Fragrance business. kind can I’d in interested. more And fragrances If something handy, extent the you projects on what of has comment? fragrance market developing importantly, been that be do off-again backlog then year? to of the in this What’s

when. You used a to way, back size have way order larger lot

What’s year, it smaller. for number quick And like seems they’ve this then follow-on. had outlook I Now the a one? been

Bob Kuhn

cosmetics. beauty the grew So, that specifically. question, George, color don’t overall the in break fragrance the fragrance also we and on includes skincare But quarter. Yes, market X% out

George Staphos

of broad XXXX? is market question in the more, evolving how So, the terms for

Bob Kuhn

to overall and mean, there doing said, to Beauty good growth in mean we’re cosmetics. for growth. a we’re higher be in Home for X% as Stephan X% a skincare going segment. I total I And rate just well. it’s seeing that in + Again, range there’s generally, as

George Staphos

the Aptar to a on guys. in Okay. would investment as just development, Thanks one innovating well. we that, be And of where seems future because curious, that and be what device, certainly the active sale equity to area the expect prompted I good luck was then

Stephan Tanda

really, was owners. that collaboration small a had and was with sold. That The we the company now share company, new in the continues Yes.

is in It do together just terms of terms have devices new connect of owner. changed. in the So, collaboration, under the the what deal ownership and we the and is continuing we develop

George Staphos

Stephan. you thank Okay

Operator

any I like in the conference turn would Thank additional Mr. Tanda back questions remarks. closing over you. no to I’m queue for this the time. to at showing

Stephan Tanda

next Thanks the quarter. you on talk to to very at the much for joining us. and We’ll see road you look forward

Operator

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

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

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.