ATR - Earnings call transcript Q1 2019

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to AptarGroup's 2019 First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. Introducing today's conference call is Mr. President, and Vice Senior DellaMaria, Investor Communications. Relations Matt go ahead, sir. Please

Matt DellaMaria

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

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

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

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

Stephan Tanda

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

reported a saw year very a strong quarter Coming results sales in first strong saw solid you quarter core yesterday, XXXX, first including growth. robust As we off quarter and fourth we’ve performance.

also well sales for administer care our wide across system Bidose Pharma with and a increased portfolio our rinse nervous that we applications, demand the all in helping above market With we Our demand systems, are drug and saline of delivery spans used for systems. growth decongestion, eye healthcare delivery with average drug saw variety industry-leading channels allergy medicines. consumer delivery is market, the healthcare end-market better reported patients growth, nasal due globe around providers Unidose a strong core delivery central options. In segment combined continuing to to which and

had market. innovative our facial sales. by good our color pumps, lower quarter, which strong increased strong dispensing for growth our as well demand tooling closures, also Food also and with partially a segment Home Demand grew fragrance Beauty Our custom was sales core cosmetic solutions. Beverage for off-set with from particularly beauty demand + was skincare as decorative our +

in business foods and categories. grow Bottled to water continue the our and granular infant We penetrate nutrition

innovations that a Now, like share would to I bringing to we're examples interesting market. of few recent

If you're examples, I’m Slide from referring along press our with highlight release segment. three our first the to presentation to the accompanies Pharma X. with product following and I the our starting posted is will website, now that

device. As press drug we China. in highlighted two Beauty in XXX-degree easy approved approval This to our with precise delivering is of and Pharma's the from FDA therapy recently delivery a characteristic Nasal patented the FDA functionality Nasal field and next Device intuitive the less, was launch Spray vital a of for spray This product shots release, Bidose device is system. U.S. is medicine depression. the recent in single Spray + Home The by our prime breakthrough the within U.S. system first prescription of using use Aptar Bidose and segment

from Dispensing which second a versus the delivers three finger. with The features times with photo each the to formula left applying the magnetic absorption your rate Pen, shows the customers spot active Skin which Care ingredients applicator

we - Beverage category. our and the the continue way provide to sauces continue to customers for controlled solutions to and customer to condiments convenient develop Food + a we our in dispensing Turning the product, help most

technology found actions our line we an our in previously I for first organic more Closure safer convenient fitment pouch value innovations evident inverted reflect turn, and products. and new exist bring before. Flip-lid to mention continue that life repurchase with built-in sauce Personal These In our Valve share did X% user we them product we tangible see also dividend not two return you'll approach to allocation transform raising healthcare, States. business across to program. These we squeeze the by and both strategic of food would and revolutionize the giving helping customers' Here, tamper from a the investing ring also United featuring quarterly acquisitions. benefit SimpliSqueeze and our authorized a are pull disclosed, adding categories part our Care how as experience businesses strategy value who to of by making dispensers and and mover advantage long-standing, are in that to our like delight includes increasing consumers Board balanced shareholders to barbecue capital

us allow with are able sheet current shareholders balance returns strong additional while long-term pursue for growth our confidence to long-term and in opportunities Our to opportunities. the Company we provide investment

few over and I Alain he a Board CEO Company changes Before since I to Board retire Chevassus over of to the of Board as would of Bob, Steve, the members that and early have until from I to served of in Board wish leadership XXXX. Two Both from course, as will the well industry provided lot and Directors. in and global like led thank their in from for guidance Aptar's share the experience Directors. XXXX for was over members turn it Alain integral Hagge position retired part Steve President three Aptar's senior A them and years. decades. to personally Aptar Steve he valuable to both XXXX, team contributions an retirement. of of Aptar's want beauty and service

I L'Oreal. tremendous member Board, transformational was Saint-Gobain. Committee insight a depth welcome multinational culture a grasp trained We She will business of to imperatives. the leader. our scientists Board that global on at impacted of Peugeot-Citroen financial deep Executive brings Senior quarter. time that of years. including she Isabel business the details a experience Marey-Semper and of the to Isabel, and of turn to of serving Isabel CFO strong of Previously, most that Executive now addition be Bob? to before who breadth was walk the several are a our experience, the through the Board. will recently and thrilled great the same over to With French into is for and the Nokia some going has it at She Bob,

Bob Kuhn

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

of that reported Slide If with we of with positive sales refer impact negative year and growth you published of $X.XX per the X% impact We the share of to adjusted you're following sales comparable a press exchange slides X%. earnings was of from including X% in acquisitions adjusted totaled core rates earnings currency compared X% release, the comprised growth prior X. $X.XX can to minus Comparable from share the rates. per

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

fragrance primarily related as the facial dispensing sales. Personal were to products. the growth of was systems VAT EBITDA market increased custom volumes, a increased demand care for sales Brazilian this increased dispensing the and for color skincare operations. X% at cosmetic increased solutions as due impacted positively market we Looking sales X% on to pass-throughs sales our timing to baby an core products. tooling + resin increased Beauty due the care transformation home adjusted an by effects pricing mostly XX%. sales profitability, pumps and had and look other basis, well market our market increased Beauty for When for margin by X% sales to refund and strong for demand care and for Margins for Core core at a of hair Home segment Care Core due initiatives,

airless with systems margin the growth spray for sales noting an to sales for that demand adjusted contributed payment increased nasal market sales project payment along of also core increased our system XX% to tooling XX%. the achieved XX% eye segment treatments primarily Pharma contributed increased consumer prescription pharma top-line healthcare margins. worth for systems used XX%, and to and care dermal The for milestone and strong an increased sales Core driven central volumes, It's the of contributed . nervous EBITDA increase primarily Core inhalers. to milestone the for dispensers the by strong allergy applications. metered sprays, and decongestants ophthalmic the the sales Our X% to nasal due with market X% demand dose in project and

a mainly France, is be prior year online performance injectables and first the taking even of the anticipated, than core progresses. strong as sales little the but site a in the year, in our Lastly, ramping to up the prior longer the to coming year capacity molding were comparison production we'll market due new which to at with timing quarter

and our Food by pass-throughs. to Turning includes a tooling segment timing increased quarter in had impact EBITDA X% increase and the the this Beverage positively negative sales from resin affected + lower custom the an adjusted in Margins sales margin segment. X%. were Core sales This of of XX%. volume improved minus of

for solutions the a increase nutrition foods, minus tooling core at food Looking in products. sales for impact increased spite market the sales about negative to market of for X%, Demand each drinks. On dispensing X% you and spread segments. first EBITDA XX%. and functional leading Beverage sales from Core lower our dispensing customs Food increased closures market, Slide primarily of infant bottled adjusted the due sales in and XX%, & due that X, quarter increased to for can our beverage to increased improvements year-on-year our see Pharma of water for granular

Foreign X currency Slide outlook. headwinds affected each growth. refers to our segment's EBITDA

$XX and I tax I Stephan. details per we $XX exchange quarter to be earnings rates, like quarter, and per million. approximately share prior ago. share was XX%. per higher and to tax point were like earnings rate when year midpoint the Capital of an share quarter approximately of that rate back free a equalize We range range using for quarter to was other also million out to an our few million adjusted the flow cash last cash flow the in similar compared to our are of for it XX% second was to to been and effects. point we expenditures the second represents to tax million XX% first $XX $X.XX we increase approximately the adjusted approximately out using hand I'd X%. expecting $X.XX range that a share will the from compare to adjusted expected of growth year's I'd guidance then would've compare have $XX if to In the our operations year

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

Stephan Tanda

Thanks, Bob.

the a good quarter me I'd Slide to let It summarize a takeaways. few very with on So like leave key was shown you comments as and X.

We sales across resin and transformation our to the positive positive all did improved with growth three mix decline in to due start year of benefits profitability over effects the a segments. from see to off prior We business, core year are of costs. the

million $XXX Aptar's an and we dividend to Our Board to X% by of common XXth our dividend. up of Directors the per of quarterly authorized be annual cash share. repurchase of $X.XX consecutive increased paying the stock will This increased year

product year Looking ago. second level of fields. are the growth Though, quarter we as of anticipate sales custom a continued sales our not tooling across application to expecting same the we most

adapt So enclosing, success. differentiated win our has our been our to drive help that solutions markets key customers to and to changing the create always

delivery we and continue drug for making to pleasant are medicines we'd customers your people In and that, buy. will use the their shape and We for doing it stakeholders. more efficient open up easier, questions. all to With so, value for and product like to it future more consumer dispensing creating of by they

Operator

George question first America Our of Bank Staphos [Operator comes Lynch. from Merrill from the line Instructions] of

Your line is open.

George Staphos

really, follow-ons. when morning, at, you you I a then effect much on the had, year. where also, payment. relative have Good think possible for contribute and the at we guidance I relative original And Brazil, everyone. were I to to couple the a VAT real I extent surprises to had performance to your when to what your And of transpired strong they the did you looked the it, the particular the your guidance forecast? to quarter, then and said milestone it's start question, congratulations this How first look to relatively your quantify details. Hi thanks in guess

Bob Kuhn

Sure.

resin than So had more positive slightly think was we the anticipated. first, I what

the for million. original in So, to milestone million; and outperformance about about + also and for then actually $X that about Beauty course our VAT the $X.XX Food payment was was $X + also and and added again anticipated. Home, $X.XX was Pharma we than EPS, about better guidance neither is Beverage The not was was which it had of it stronger

George Staphos

puts flu did and it it last I allergy forecast, in was that Okay, food tooling? tooling impact was started, part when releasing or question, there for the I lots put just and thanks what come the transpired margin, season, of you than pauses tooling, together then a puts had on elsewhere. your Pharma What better Bob. that, stronger all drove a had guess, it than in total was season of from your related were in takes was stronger fall discussion a it as to you. ultimate, back your ultimately Thank within down, what you the and in takes company

Stephan Tanda

Yes, George.

Let one across and and first I channels. Bob in see all me may in flu we Pharma - continue particularly strong they of allergic on and the cylinders. all tremendous really bits that's But both in the a firing don't strong then take to or [ph] been it's season. rhinitis exceptionally congestion strength second can business, think the business and maybe one. Consumer prescription address Healthcare is

course both the [indiscernible], the to launch pipeline systems type in saw which CNS, we In you first of addition, System, Nervous grow, products, affecting course of continue the quarter. of Central some Narcan addition, our delivery had J&J's still

board it's strong really picture across and So very all a around. the

Bob Kuhn

really the were margin, on we down get last side. total sales, don't year overall, the compared two know focused in I I puts sales. $X you dissecting $X million the And question, but I can. to mean million on the, and the exact positive, can the margin, on on the was on I tooling what side but about about Tooling takes George, on margin just we I resin you give take on into

So would was that it's positive tooling fair pass-throughs the that to that say resin more the brought. than impact the the say I negative from sales

George Staphos

it that's guys. Thank great. that's, Okay, I'll over. turn Bob. you you Thank

Operator

you. Thank

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

Your line is open.

Edlain Rodriguez

that or to so? you Thank resin of get do you have your you. next that couple you or the Clearly, costs. pass customers lower benefit Good morning months to over from Do sort guys. keep to of

Stephan Tanda

up math The same and works way Yeah. the down.

on So contract XX - it we depending with on. lag a pass to XX between anywhere the days

if Now, days. quarter at beginning quarter end XX the it's of the the the again at it’s days. it's it’s - the of XX beginning days, XXX By the if works, the math of

the So same have as you lag effect a does works up and way it down. it

Edlain Rodriguez

Okay, & that past like one sense. on us what the you beverage think status several And that. for of quarters that, that there? you've customer tell you seen I had over the one makes as Food I on China, in that Beverage. quick issue What's mean, I in have can any improvement

Stephan Tanda

about looking was call forward that. without I talking to have a

Edlain Rodriguez

No chance.

Stephan Tanda

it not affected quarter, the to chest. the Though They but this remains visibility limited. closely very was really played

Edlain Rodriguez

fair. That's you. Thank Okay.

Operator

you. Thank

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

line open. Your is

Ghansham Panjabi

for about sort to difficult the morning. just think to a good guys, the strong going you segment market injectables get to that the the do your progresses? a volumes was for primary that that Hey well sales pharmaceutical flat segment, back more bit versus And as quarter, I comparisons as competitor quite segment mentioned for this QX guess . we’re afforded trying to that reconcile segment related in XXXX. fantastic pretty I'm year How given of you then for the just

just be helpful. context some So, would there

Stephan Tanda

Yes. Sure, changed, Ghansham. indeed. growth the our for mean overall, the has guidance XX% it's I X% Pharma to not

where we We several quarters were above have XX%. now

we in But realize is quarter about our our pipeline on feel see in the X% we rest any injectables but your Pharma indeed there. that is wouldn't and overlap business, particular too it On we read to XX% with second have, marketplace. injectables, much the and range to please I that given question in into will minimal very So have reversion the mean. inevitable what a it's good we

in some it. really soluble there’s address at the [ph] making changes we're bottleneck we’re facing So moment, operational some France, to

speak are is and add and the we in will capacity additional capacity the We year. capacity adding being, later we as

view. that also pretty we’re and point So, QX, comparison of and better, a from be to facing looks strong

changed fundamentally nothing So injectable with business.

Ghansham Panjabi

your And helpful, from That's of Beauty doing good Home are quite the you've segment, customers a + had growth Stephan. quarters volume terms segment in in multi-region standpoint, well then of Okay. basis. a several that just in pretty

quarter Just XX up well. be thought initiatives, focusing are you the this costs with for this EBIT as some transformation even cutting as resin year-over-year at point, just that you in et cetera, terms you there the you're on margins, be first and points part of tailwind helpful basis where would of for margins your segment would color

Stephan Tanda

our year at on the transformation up our then, if in we improvements headcount you, achieve end address our target the and but Yeah, was by rolled and long-term footprint, certainly Europe heavy and maybe of is where be our sleeves EBITDA which first the targets, you now this operations especially to and line, year two, really run rate overall top so G&A, really reducing we’re our North million year a have and which point with remember, point improving is to The strong and comfortably tuning fine if good is in it's three, is in XXXX America. work the to about XX%. the view familiar $XX of is the XX% focus

expanding decline in top you more or indeed, top quarters said, now the of years seven racked line up as after no growth margins. two On than have line of we growth with consecutive

So topline to addition efforts business. from clearly more the benefited the has securing in transformation and

share discipline greatly of a also has pricing from view So point benefited.

top in investments the ahead thought topline. additional handful at would these talked on operations, France, little In that are highlighted game. the clearly a bought say, maybe we earlier, attention. start-up analyzing So bit of improvements I and about yes, are we need the on we sites. decorative additional Reboul the the the that, sites have be where sales of also needs would are with we at and in moment We knee-deep sites performance course, a for and operations we of into even the of improving

working say are at to handful much levels [ph] a quite I of has to OTIFs points. higher we’re So dare almost from - several say moved have improvements sites. visible levels, of on to I service by XX's don't

the I - certainly more had Our the start-up. on challenges the normal bit facility levels debt being following lastly, improvements, And the out, up I are a G&A in say running say is reductions anticipated, so stakeholders But with discussed are than clearly are actually bit that I respective operational would to one, countries. they are fully a analyzing our we in then behind. mapped headcount at would they

pretty about that. So, I feel good

So million overall, $XX that that on that target XXXX. that Bob mentioned netted we by time last with way to run improvement ensure the and $XX were started initiatives meet the rate in year end to of the the million continue the we we above build under of

think I around topics all think of. that's kind might that probably walking of you the

Ghansham Panjabi

awesome. Thanks so Okay, much.

Operator

you. Thank

next comes Wilde Markets. Our from question Capital comment from the of Mark BMO or line

Your open. line is

Mark Wilde

a walk across of state Good sort around wondered and Stephan, quarter. of it us could good global morning activity and if about the you the the the just congratulations on I tells what portfolio you economy.

You've more but discretionary? which kind some fragrances, have got are much consumer really staples, things consumer like that you are very products of high-end

Stephan Tanda

really We the would end and premium it's continued the extent comes In certainly connected good kind mean, I about be color in we and softness overall particularly + the end, of Personal travel demand the Care in in so Pharma, China retail it larger pull like Beauty to at Care, cosmetics, any Asia well Home, particularly and And there. look in United are we the, continues like we fragrance spoke consumer when we not to luxury comes in Home and cosmetics. particularly Asia, activity do large see demand color would fragrance, see represented locomotive to and it some Yes. which industrial to States. the I to on. the exclude, when

to is product a segment. and that in is good rate And + by see innovation growth we consumer, But not this very Home. expect on we closely related that driven in really growth continue balance, sales much in general as overall, consumer our Beverage, demand continue there. Beauty and Food conversion expect pullback So really, & to growth still to

Mark Wilde

competitor? Stelmi Okay. bit into feel And just then more of for my a if of from the in the little follow-on, you about could talk I turning terms making Company is a a brand progress you regional wondered global

Stephan Tanda

over I customers I've is improvements quite the several to last they months the few progress recognize well. we've substantial Stelmi. to talked and think made the

World are around We active Congress the nicely. is delivering

good demand out a We China. have of

back addressing, think mentioned, as have progress. I that the recognize France customers I bottlenecks capacity we the Now, but are we overall some in

investing levels we or business rapid in in I that that are demand. are demand meet general that and think challenged additional segment service to being given all uptick in the

Mark Wilde

sense expand lot Asia? trying where that me could the was then of in, And of Okay. in footprint? to last of to in trying talked business at one we you get about just, is When Asian for terms came the proportion a firm's you you're if also the the some grow

Stephan Tanda

particularly Yes, you just like, anecdotal if speed, Asia’s to maybe but started it we the but second the benchmark are we up of would information, course, in not some making Guangzhou. have progress, site you size really is that

course [ph] are content China, Company. the addition investment the in the China, Board looking consumer certainly, of very dynamics China We is We the additional senior successful exposing a trip, actually it. not to yes, significantly Board Gong additional the into leadership opportunities, more came we're Asia meeting the of biggest back has of from just part all only at that the brought there but in Xiangwei at China. was in And sites having headcount the also of of to and looking

Mark Wilde

Okay. I'll turn over. very it Thanks much.

Operator

Thank you.

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

open. Your line is

Adam Josephson

everyone. morning, Good

congratulations that one million your focused EBITDA Let on the year. + as Bob, question the $XX to Beauty good was really is year next Home. about of earlier, incremental end target the transformation of a of me start by most so on obviously talked add on my you and

up, I it and think Home year, flat was EBITDA in last was $XX Beauty in So, XXXX XQ. million, +

to Home all extent is and - target away of and million the obviously not you’re + has that + getting in most profit that that obviously from where company's growth Beauty Beauty Pharma quite a the been $XX bit to Home. So, obviously almost

you do you. Beauty status update by to most million the next still of + be be would that $XX So, Thank Home helpful. just expect in end of year,

Bob Kuhn

Yes, the I the two Beauty there things majority spend - expected is, one of in million segments. and external that is Home. G&A the majority mean corrected $XX all is those of three But transformation around and remember + is pillar span really across

even say rest So, that there Food to that But going or a + we segment. attributable, quantify million million, the it attributable well, fair is within Pharma to $XX in + going that been the of Beauty it's to $XX majority a is positive but, Home is to particulars, be that Beverage. the the has and

Adam Josephson

Personal of Thank you And the in then was areas you Mark's Home the response on to that softness, I and do just, think question out you. make US. I called Care in weakness attribute you to? what's about What one you of of What going talked do think there?

Stephan Tanda

have a but the customers I the It than looking just like tell ball at flagging are you and picture we I stage. - be To there. honest, what our cannot crystal see, demand this looks at, - what more don't

Adam Josephson

you, Thank Stephan.

Operator

you. Thank

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

is line open. Your

Chip Dillon

segment, feel Pharma it Yes, I how over again and it the experience. I engine is doesn't just a on congratulations quit great you visibility that the a the as and go and back have wanted about I good is much you on terrific question know to just tooling based your had years, And business. morning quarter. a

off of in mentioned - think might bit do the sales. of be when tooling just sales which in more it how I little noted segment, thing, your was that see but much second might believe have back variations quarter I in you I might tooling you a guess visibility one equipment broadly, quarter, I the you a a

Stephan Tanda

these our simplifying on business, we basically the quality and business Yes, with injection and often companies, take drug so, on we different. is for as do a and anti-depression project and clean I the the we've years started get pump, the I room in this they Bidose working and than in have end. technology use that's is technology I same approval, Pharma for molding Beauty something the very successful mean a you the big then it’s little as mean similar, a systems decades, our sometimes technology is back more the and example, Pharma All - that case mean bought company significant with in basically part projects they are the timelines greatly of J&J. decade fragrance worked by while

ultimate you is timelines what uptake visibility but the is approvals the there is so So years, course what quite approval if are pipeline good. is once the is plus of the and selling, out visibility, We visibility with the the the five never FDA very good, the tracked obtained add long. you is that and know of what timeline very

shepherding The milestones significant agreements we for model an I part along. – would inherent this We pass is payment, with because we on payments is say customers and the milestones, if projects in into certain take entered long resources other these things our highlight that business become very them one, expense milestone due our you. and of becomes we bigger

Bob Kuhn

maybe add on point Chip Pharma. custom the tooling a can I for little And

past is business in the highlighted in tends the step be function. as that increasing So pharma we’ve to

a product capacity in times in purely the increases So investing when see our we tooling versus new custom of it's on market. customers lot a Pharma, sales

of and Pharma we’re just going some it truly I up grower again, is look capacity the QX, a what to forward. tooling. a saw So, of but past in sales against wouldn't too And tooling was function type increases much lot really were negatively forecasting the we that customers step when our difficult comes into comps

Chip Dillon

super helpful. that's understand Totally Good.

does tooling know how saying worry out, it the was, of quarter-to-quarter it some And get look terms as it is? I differently products So the in about to compare X us, lower? if just could higher? XX it these backlog from to about takes just you is, focused on but last the years what's be potential Today, pipeline. do you the have, you don't tell In the Is it is what over play what drugs Pharma approved, years? of in if

Bob Kuhn

the + backlog categories of - to about the overall also the often the of applies project business, is but solid. We the pipeline Look business. converting business extent that size in Food to And our talk quite Pharma the in course, some decreases increases. Beverage very

those were indication. were Narcan both and existing that years the for take it administered administering many a that - one in product, way for and/or way really it the innovations So, different different a known been and molecules has

that the brain I there's innovation, cavity approval conversion nervous So pill in I tract. the and clear system cross cleaner through mean, to a and interest particular with the so think it's a is and we the more central lot and antidepressant category. barrier blood very nasal is the than quicker sending more gastrointestinal credibility get through also the

Chip Dillon

Got you. Thank That's very helpful. you.

Operator

you. Thank

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

is Your open. line

Debbie Jones

morning. good Hi,

Stephan Tanda

Hi Debbie.

Debbie Jones

on questions I've growth. the two longer-term

small some changed you year how rates you're customer be or you up pick thing elaborate in dependent your is Beauty talk bit how to over concentration about on Home few Can going of on have kind customer business may first if to last your and next your to growth + opportunity years versus so? The the segments. the you think midsized a the

Stephan Tanda

regional categories. lastly, become multi-nationals and Debbie, more work, And customers you're right, XXX at - which important. their champions, mean large the of on in in question ultimately the in our independent driver it Kind question, the players, but I at look large then and really have brands, then we to depend different three conceptually get become cases western the your multinationals years, Well, for % traditional small many in growth, own the few right. last which much we

out multinationals. were of And of champions. so brands me these transformation rest some sometimes let one regional the we independent stronger small didn't before is and give dependent other, just They than the overly categories the large win the against on the examples,

from of there change comeback back course a so, highlight of again I we getting share faster to of have and continue independent much again do them One lion's them coming to of growth. China an and decentralized, brands continue is one more their agile, the the more China, see e-commerce taking that share longer and lastly, big of see the All up see distribution and jumping would example And examples the a multi-level the on channel really and emphasis course, market. as - start by in and I kind champions of and more getting Small from ones, being the well ones of much themselves regions bought them regional of do put shift taking you retooled and very as would and brands the country say course, you to fair then a examples see on is their additional no bandwagon. well, via win more e-commerce and see marketers the of get of growth and again we more to more done continue small many we being share of the those. fair the independent

also channel plays a role. the So, big

Debbie Jones

another drug again I growth years various little next of the but you broad have. that question, and about helpful. a and Pharma And then thanks. your bit wanted couple delivery to the applications over Okay, That's talk

kind what targets? your And terms kind seeing the couple to to you're years? drug of long-term next trend the and to two and grow advantage my good grow pipelines of product delivery you're application - making looking take it kind positioned really you three done buying over the in the to that You've question but years are pretty or job of is sure below what's of ahead of the is be of expected maybe a of that on in the is whether next, developing

Stephan Tanda

across the Yeah, look really -- board. it's

drugs. I think whole different area drugs the will of might how one categories expect system apply that that we area in is more maybe devices growth that and as and the yet and connected nervous materialize in allergy important be central compliance, to to additional

how to space us. they connected have revenue devices - we'll impact whole So, see data

see I So, just nature I really our very other by encouraged the any it and let I'm that up system nervous can't allergy, see category. central that's what in call out, in I don't than the civilization but of

Bob Kuhn

to customers services, the is, analytical we've about to Debbie, Maybe out we that continue one our other market. past to, to the them talked build getting offer our we in as point, continue additional services

So, continue the and that more area it's yes we’ll very piece revenue, small and it's an today of emphasizing on that. Pharma a more, but we're to focus

from pure those rate growth a So, service offerings. perspective, to we're looking - expand

Debbie Jones

you kind more don't a looking anything to, --? there drug exposure delivery that from interesting had Okay. And is you just far or have Are mechanisms of that you follow-up. any one quick wish that

Stephan Tanda

we injectables certainly to Well, I ecosystem. will out build mean, continue our

applications rubber stoppers different it's many are plungers. injectables, and within there not So just

leave that. let So it me at

Debbie Jones

thank a right, Okay. All quarter. much. Congratulations you good very on

Stephan Tanda

you, Thank Debbie.

Operator

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

open. is line Your

Daniel Rizzo

guys. morning, Good

a are Beauty are growing small Home quick also mentioned that importance, + doing you in well. rebounding the independent large follow-up, regionals brands Just are multinationals in and

like everybody what guess that, is well. is I just is broad and base? succinctly It saying I it So that mean is, you're seems correct. doing was this

Stephan Tanda

the we weakness the above the into in well often of that the and you partly quarters Asia. of European of growth that except Home we based and seven But was mean the that product in while these think lot a done and of products part when markets see again certainly end self well is Personal Care players. help Care had up in sell multinationals, of - ends average some we I U.S. more Yes, yeah, effect, U.S. and in I

Daniel Rizzo

that coming in Okay. And of you France incrementally? terms that you quantified Have is or means online. new what increased mentioned or capacity volumes in then sales, what

Stephan Tanda

reasons competitive disclose won't that detail imagine. you as we can No, for

Daniel Rizzo

you say, drugs finally, just new potentially have next, three your I other nasal many mentioned the then product over how process was are a you nasal in five that doing be system And wondering that could Okay. using years? well. to

Stephan Tanda

system details Yes, it cannot pipeline. increasingly of and of goes the is allergic the one into rhinitis again, get from congestion and I sweet central to but the really this nervous now our spots

Daniel Rizzo

very much. you Thank

Operator

you. Thank

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

open. line Your is

Gabe Hajde

Congrats gentlemen. as curious I'm about the an progressing expected also expand there there but but if CSP some talked been the or questions of the assuming curious you update have there? acquisition, I My surprises morning it. can trying us any on was make that to it's upside new Good just applications, was didn't mention asked, quarter. you is and downside give I as you about

Stephan Tanda

Sure, Gabe. I can handle the CSP question.

had a we're strong, So level, per year at about the QX we bit the where QX top-line that in performing very we in in $X.XX well, and accretion CSP is that and in better actually indicated above a $X.XX forecasted comfortable little quarter. we’re had terms than of they added first

the business, terms we're on. a in about comfortable six-months lot that Yeah, fields, of the new fair had a application projects we forward. is that got of Aptar and from So, a number of $X.XX we're in new we're legacy number going we working interest

they're can So, where and with market I there from results new the would the say had developments, we're we've thus bring happy excited yeah, future. what very far we are performing, about very in to we

Gabe Hajde

we added but of of in capacity of in you capacity natural that a asked I'm then, this event? a mix or And I the that know if timing on a for you're maybe Stelmi. finer capacity that don't would year, Stephan bit adding assuming of contribution the a to this more just expect year Okay. to, that last over little in of is sort point XXXX before, terms this something extension you're from you're is willing

Stephan Tanda

that speak, in of are here talk rubber multiple supposed there to get go is buy and or to where US the some of mold investments stream also are anticipated, what it mainly they is downstream going takes which as is where basically coding in through already as this we into mainly the and talking bricks And to will then of these parts. stays molding, they finishing to molding the certainly that and do steps. that the ensure compounded we're the already said, additional is upstream some the really little being and just I part, mean we through washing, but the actual also steps you capacity in capacity from long so, part synthetic And And increases is I then in upstream invested you coming process than the start-up about investments vulcanized in added rubber the In the it rubber with address said, bottlenecks you all on year. what I value it as Yeah, chain, later bricks, we've benefit year. France.

color probably can as as that's think I you. I much give

Gabe Hajde

Good luck. you. Thank

Operator

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

Stephan Tanda

Look you. and joining our to everyone thanks This Thank concludes the on for call us. all road. your you Well, forward appreciate questions. today talk Goodbye. to

Operator

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

disconnect. wonderful now may have You day. a Everyone

AptarGroup (ATR) 4 May 192019 Q1 Earnings call transcript