AptarGroup (ATR) 4 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Matt DellaMaria	Senior Vice President, Investor Relations and Communications
Stephan Tanda	President and Chief Executive Officer
Robert Kuhn	Chief Financial Officer and Secretary
Gabe Hajde	Wells Fargo Securities
Daniel Rizzo	Jefferies & Company, Inc.
George Staphos	Bank of America Merrill Lynch
Adam Josephson	KeyBanc Capital Markets Inc.
Ghansham Panjabi	Robert W. Baird & Co.
Neel Kumar	Morgan Stanley
Salvator Tiano	Vertical Research Partners, LLC
Edlain Rodriguez	UBS Group AG
Kyle White	Deutsche Bank Securities
Anojja Shah	BMO Capital Markets

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 2019 Second 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. our Secretary. Vice Stephan today Executive Kuhn, are

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

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

that filings could some forward-looking actual statements. refer to today’s review materially lastly, SEC factors forward-looking statements. differ or call includes to obligation Aptar And projected undertakes information forward-looking contained cause contained the the to results Please those no our from update therein. to in

like I over the Stephan. to call conference turn would now to

Stephan Tanda

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

good saw results of we quarter growth sales you with growth. and core yesterday, solid earnings X% reported second double-digit consolidated As

the of strong and Pharma X categories. sales Slide in continued from central the momentum to deck, allergic rhinitis to system benefit our Turning nervous segment

broad-based our saw and also consumer other injectables division. demand care our including a health We applications pharma increased across

for offerings large I’m the support we accelerate complex to on of closed expand two our and service pharma de-risk It namely pharmaceutical molecules Nanopharm our to service leading help that companies, Gateway customers strategy and also pharmaceutical Analytical. acquisitions both and pleased small is that them product developments.

enable and they services will services requirements stages of support delivery increasingly demanding all platform for drug face to drug to bring acquisitions development with formulations commercialization. analytical, and and competitive value-added The and and Both markets regulators. their collaborate as customers expanded testing differentiated development increasingly earlier Aptar

Aptar people week. CSP the U.S. is with Unidose Powder the of for interesting Administration Technologies, combination System and from FDA delivery the a an protected is pharma-related Food in a treat to by with two which device drug prescription patented drug Aptar’s had approved addition active acquisitions, device diabetes. Powder This is of our announcement using Aptar’s just solution approval to drug, marks hypoglycemia a container. another last first and The severe In Unidose intended System Drug we first as polymer

also injectable way difficult treatment require process and first and which intranasally to hypoglycemia. multi-step life-changing severe often assemble as of another non-invasive to replaces delivery drug needle-free liquid. the This administer the kits, mixing validation is time-consuming for launches Delivering an This of nasal life-saving treatments. rescue attractive powder the

now Turning Slide Beauty X, to + segment. in our Home

a a a to last customer’s in global amount comparing a Both second very not course pipeline fill of included care which personal of year, up are sales launch the tooling We significant did quarter repeat. for and strong custom of which market.

and in our of good the We of throughout look approach further continue of manufacturing operational progress our our make we part three-year to improvements initiatives, next phased facilities the make year. progress to including remainder the at all of are and that transformation some year

nozzle that Looking hairspray we to at two Monat with our a the introduced allows that quarter customers market. settings. innovative for in features Twist-to-Lock our patented One Studio the product to on solutions right, bring continue a And actuator help dispensing the

to locking e-commerce shipping. technology provide designed addition, the In is protection during

products. market. especially Moving for quarter benefit strong for particularly and Food a demand segment our on Slide to increased the dispensing in conversion opportunities Beverage to from our + with had food closures, segment X, condiments The dairy continues

fitment closure and our you the Washington differentiating of dispensing have the that article our flexible valves. pouch enabled pouch recent highlighted StandCap, of the read in the with solution by also Post Some SimpliSqueeze may benefits inverted

you it, the If Aptar, just Washington missed Google article. to find Post,

convenience appeal, their first featuring Starbucks launch pour This for a press-to-open-and-close visual provides a consumers. closure under dispensing the selected creamer differentiation the Aptar Starbucks spout, design by unique added and custom strong was develop Also partnership. Nestlé brand to for dispensing sharp

Finally, closure line the a organic dairy infant is by Yili, built-in in scoop a large our infant on formula of formula China. with featured

a summary, in with several good softness gains Pharma, earnings new growth interesting strong top-line some with overall product personal So and + in in quarter care, Beverage and offsetting introductions. Food

will who turn I it now quarter. over that that, details the some is With of through to impacted going Bob, to the Bob? financial walk

Robert Kuhn

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

slides per X% refer you you We to the the are following published a release, of comprised can reported core X%, sales with sales of Slide growth that with If X. press was to we of of growth from incurred impact increased year. rates positive higher of the due Reported in XX% of impact earnings share currency from costs prior amount X%. the X% acquisitions mainly negative and a transformation

spray the Pharma saw for in the and our The XX%, of release, increased sealing long-term sales our for segment consumer X% margins our XX% you sales XX%. to used demand primarily used with a range. and nasal for high of and treatments. systems growth the increased sales volumes, to demand margin the system by ophthalmic press an of for systems in nervous our sales achieved prescription products. drove increased Core primarily adjusted market market increased Core due core our prescription driven strong central nasal EBITDA division healthcare end allergy particularly As with

as market capacity production continue Lastly, online increased bring core injectables molding bottlenecks. we to sales certain to to resolve the additional X%

keeping material lower to Beauty year-ago. profitability, a impacted at constant segment, + adjusted XX%. and our we When efforts. EBITDA excluding our tooling an and had margin currencies Home compared transformation sales, custom acquisitions core were lower + to our Beauty raw to costs favorably primarily look Turning by of X%, sales segment decreased Home Margins due

due basis. home for the sales increased difficult across more demand U.S. Looking of categories which market. mainly X% to categories, sales, launch all in insecticide lower the market Core prior softness primarily market air to than growth sales strong pipeline global sales sprays. X% XX%, year core was customer’s market of some across personal custom growth due to increased due Core due Europe. half the comparisons on tooling a variety sales the in Core by a to in fresheners and care at increased market to decreased beauty the to filling for and care

+ at even in had the core and Food sales of was segment, margin the Looking XX%, quarter increased which adjusted segment year. an this our prior Beverage with XX% EBITDA

to Looking particular, the sauces at spring dairy impacted where granular each believe in and sales the demand. and sales dispensing well sales in we which year-ago, to offset increased across market, weather core as custom for conditions our demand to condiments, the X%, due to primarily due categories, in market increased market Europe, of closures as compared Core increased foods tooling most increased products. a to beverage weak XX% sales food the our and

and Turning per per rose compared to $X.XX Slide adjusted totaled earnings a XX% share earnings in X, $X.XX to the the prior share comparable adjusted year.

each in also overall We expanded adjusted currency foreign EBITDA reporting XX%. EBITDA with by adjusted our increases grew quarter, despite headwinds. margin adjusted the segment XX% in EBITDA We approximately to

cover performance Slide X sales per year-to-date core adjusted our XX X% growth earnings XX% highlight our and share and and good growth.

outlook. Slide XX our refers to

the an $X.XX per of We the to are range third expecting tax in using expected earnings range per of quarter XX%. XX% to rate share, to $X.XX in be share

was last recently corporate tax quarter third a France. like guidance XX%. third rate for also rate increase in of rate tax out year’s tax the the includes quarter to I’d estimate enacted adjusted Our that impact of an point

XXXX. there comparison of are rate to differential. are headwinds euro X.XX Also, tax to a guidance, up difference X.XX in our currency euro the So due using QX year-over-year in against in the and is a rate significant compares rate we which

In few the have a flow approximately $XX I approximately share, operations $XX then a compared it other $XX was cash and to quarter, from free flow was million turn I million to our million, approximately expenditures $XXX over details will Stephan. and capital million year-ago. to back cash were

at was on remain basis levered. on balance capitalization, Looking than while X approximately we times and XX%, basis approximately a a less was our XX%, it net sheet debt-to-capital gross

At this comments Q&A. will few provide time, Stephan to we before move a

Stephan Tanda

Thank by half as We year of earnings Slide the with a sales takeaways were leave shown This double-digit sales the Home core year-on-year growth key had Food X% segments. driven some like We each with challenges. was excellent which + core had with despite through Beauty across sales segments, to Pharma, few you year, you, and closing, profitability In first + our the on Bob. XX. prior saw improved growth. even Beverage I’d growth.

year product third compared the the quarter, weaker we segment. lower each product we personal to anticipate momentum positive our first-half segment, custom anticipate some care in + sales sales of Looking foresee Beauty continue the the growth to growth expect across and and a near-term to tooling in we customers volumes core is while ago. in expected the year Home seen Pharma

systems consumers innovative which their non-dispensing key will by into can introducing always continue to the packaging bring to product and closing, our to and systems, innovative technologies, times the our we to dispensing change innovations create value to and customers success. dispensing drug been of with has delivery future that work continually drives In

Thank it would your very for questions. With you that, I to like much. open up

Operator

of first Our comes Hajde question Instructions] from [Operator Fargo. from or comment Gabe line the Wells

Your is open. line

Gabe Hajde

Thanks gentlemen. morning, Good taking for my question.

Stephan Tanda

Hi, Gabe.

Robert Kuhn

Gabe. Morning,

Gabe Hajde

isolated that you you little U.S. personal comment bit I weakness forward mentioned was had the persist. been to expect to Bob, But care a that the think, the look it

one or then, by still So it’s question. I And mostly U.S.? that expanded isolated was curious geography if all the at have if to I other

Robert Kuhn

Sure.

was to the reference the the QX. for really yeah, So, U.S. primarily

is there guidance. element so a and QX robust, our basically necessarily weren’t of certain it. That’s regions other in about The caution

Gabe Hajde

commented acquisition, the I how I maybe, you Okay. know, of guys you a CSP couple don’t or have etc.? of – – can on relative I And of talk expectations, first to you then minutes acquisition can But at performing this. the apologize all, missed so it’s if the – part

Robert Kuhn

Sure.

that where in of quarterly are. Again, operations. accretion they far our were a very to They They are top-line expectations thus added. on the continue QX. legacy they’re CSP our performing Aptar the we’ve basis, double-digits and with we’re above pleased exceed integration So accomplished with sales the performance forecast

$X.XX accretive about in were QX and They both QX.

so joint very XX% about an be accretion shortly out And or our to mentioned, maintain Powder. on in Unidose basis. the nasal product is first that excited as share the Stephan we’re per $X.XX going And – annualized market in target we the

shows inside it legacy technology the products. the comparison do what with think can I CSP our in

some we’re that + is Food containers in + the which just the technology future promoting but diabetes CSP’s and today, they also as So beyond that core possibilities well business, potentially some has we’re potential Beauty as of have science And Beverage, Pharma hopeful in actively segment. some the also the is material like. within very and vial Home

Gabe Hajde

Thank you.

Operator

you. Thank

Daniel Our or next from Rizzo line of Jefferies. comment from question the comes

line is Your open.

Daniel Rizzo

Good morning.

was care wondering serve expecting you is market I year There comment of have it in other continue that companies to mentioned that You into the to lessen of the on if any expected the been softness potentially if the till that. has third end something quarter. personal care that’s you into is and would kind XXXX. visibility

Stephan Tanda

cancellations had the Daniel. there somewhat minute of limited. – is Thanks, or Look, some We at /deferrals. QX end the visibility really last

So clearly, quarterly anticipation the there some chain be is things and soft. will guidance. We give you supply in

is So the to really our visibility quarter.

day. shift different we is There some every are These use share market companies. the between products in

read may You about have that.

is that a are this there longer have the to will now. return in going products term confident we lot So in on home does the everybody those right and But so else as in your you call. growth

Daniel Rizzo

that think softness that the was in then, there because in wondering I wet Okay. third if was And Thanks. quarter. weather you with I weather or unfavorable Europe the conditions. spring, was there a mentioned in catch-up of

Stephan Tanda

it’s Yeah, that gotten in should bit certainly Europe, too the well bode a tell, and for has the early warmer, business. a lot especially to but beverage weather

regulatory The some some had see East more isolated also changes. We developments. Middle

But shifted. counteract certainly, might the see. weather that too has that. So early It’s to

Daniel Rizzo

much. very you Thank Okay.

Operator

Thank you.

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

line Your is open.

George Staphos

your the Hi, late, Good have. if bit taking much. my you already mentioned have you so we look quarter. from – sector? you not on of bleeding on into I really seeing call jumped in volume competitive this, Or and here – might apologies and you’re Thanks Great alone very When morning. are that? any care, the Thanks seeing personal seeing for are peers the more commentary not advance, question. the in little are you you pressure softness guys. at

and question, margins ultimately, forecast, And modeling. from we yours. had not off a what been bit little But of related then, our a is this were kind

in any model much tooling there You we in mix for looking was the growth – should things aware other notable we stronger we that aside your had that be Were a going and from forward? forward. quarter are of that the as segments

Stephan Tanda

in one. Bob let on Yeah, a the one me competitive and really maybe competitors. second shift catch see first and behavior with comment We peers the then don’t can our

new all new but those the owners. not we are entrants. are see of hands, changing are course, Of that These some just assets

certainly end some couple softness share I both on we Within sector, of And Europe. care in personal nothing our broadly see these U.S. a do and demand minutes has don’t ago, to whether ultimately quarter and do the – you but But customers, products, were you ultimately, see we but as shifts return. in in three are the – will demand. just with that the know used

Robert Kuhn

George, I on comment can take margin. your the

has that for we were it a was on or exactly is in thing that was at Pharma one of the basis. weren’t slightly of still lower focused But on CSP profile So – margin was sure a understanding all kind it range to on consolidated us, particular you keep related, upper-end if I’m Pharma. not the mind, XX% you whether a at surprised, if segment if it

to going dilutive little it’s that. bit on of have a So effect a

lower it last relatively flat most in Home, with same Beverage XX%. profile, sales, spite + Beauty still up in year. was of where to don’t being And then, core have margin + tooling, Food we some was granted of the

one sure from off that I’m were particular we there your model not if So on. was one

George Staphos

but No, or you there’s you the as variances. the and your here in + expected, significant is items no were had call Pharma more it plus there expected Beverage, it on and that Food would minus, sounds was it call. like quarter you as out were But margins always

Robert Kuhn

George. That’s No. correct,

George Staphos

either Asian worse? over, that Thank haven’t extent over. you to additional that my how of good seeing are what might into Okay. second the it expectations your you, And you commented half, terms already, I’ll I’ll guys. demand better turn filtering luxury question, be and in turn or then for it

Stephan Tanda

continued the short our Thanks. fragrances growth on European care that in really story Asia. luxury good is products, an in don’t end luxury because sales, we which and of impact skin Well, see the up our see we in end

impact the think did tension trade that or longer have this consumer in story confidence on I significant ought a all is to that China. have

I that. say. That’s and haven’t items, it’s markets and and think kind those so fair it actually continue personal been contracted. that large products like the skin-care in all to we travel to big electronics fragrances we cars, of of that’s fact follow we And on, seen ticket you strong retail. and have or But see

Chinese with significant make the of see would by the to a was I that point last The we kind fact and wrath that I think us. for but China, hammered China supplements multilevel government safety got set make, that do marketers really marketers there the that’s sales Chinese much brought customer on of for we softness, that the in has more with do nutritional government, multilevel a and some healthcare that and that

the the the of is is start-ups, lot who from to to still see churn there is business growing, but to So churn who lot hard to in see China we going on e-commerce a catch a indie The supplied business. end. brands in and of multilevel marketers business it’s

George Staphos

you, Thank you much, Stephan. Bob. Thank very

Operator

Thank you.

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

open. is line Your

Adam Josephson

Stephan, congrats good Bob a quarter, on Matt, and good as and usual. morning

Stephan Tanda

Hi, Adam.

Adam Josephson

things than question which one just little normal. XQ, more the and on XQ. Home. in it or the decline, two in tax got is regarding Stephan rate skewing $X.XX guidance, the a one I’ve a about on Bob because was you’re then sequential implies higher just a tax Beauty rate XQ Bob, guidance, + lower But bit,

wanted make decline? a if is, Would Or in of in guidance, more to XQ I just you unusual just anything don’t that? that normal there’s light it’s sure. think you So there I for say sequential your adjust

Robert Kuhn

hit major to if together, I it No. some of think I you mean, piece you I mean, on try the points.

out So coming couple the rate put obviously, there. from of guidance tax pennies higher is that we

Our we haven’t past, we shares is that’s as as as share in been many count increasing have repurchasing $X.XX. about the

to our continued compared level, – $X.XX comparatively $X.XX bit our little probably of regions at that’s senior is FX we dollar running The investment, higher, excellent today. the strengthening that’s the again centers. in but see not in and Our about are corporate the a $X.XX only expenses and again some

kind it’s in it’s the to little up So add lot all guidance. of of nothing particular, a things at

Adam Josephson

Yeah. or either restructuring one on total That And for Stephan makes Bob. sense, Bob.

$XX on target $XX remember, year-and-a-half, of been EBITDA for of + year-and- the compared that which, I’m last million to up to cumulative of $XX savings wrong, So Home. it’s program million. in + going guided a started million Beauty I Beauty were come Home savings, a-half you, to most the since me if correct in is

you the such restructuring just expect thought Beauty program. wondering or been by come you that difficult it it perhaps imagined is has will more So program more if be Home to be of difficult than would just million announced the $XX as you you I savings then + am to be when a

Robert Kuhn

one. that take me Let

development. I with definition of transformation two top-line the pipeline, think was We through happened, we about but are a fundamentally the the the we the focused and we and top-line. things top-line have grab just are good on really the of everybody, pipeline, quarter reminder notwithstanding, a one feel the happy year can very react and three-year course, good on for and halfway

at and made the operational year, operational the NC] we which [site middle in, come strong. improvements. the good year of in side, which has back the the [ph] the our decorative some is are improvements is about We The at all second feel we’ve about of anodizing

the are the of the with and discussed in head And works year in then and reducing further support things council. functions, particular SG&A around, is have in still – further to finding We being all count, footprint, sites, go. Europe some third those several at then

all people take X,XXX slotted are have in. these we but time, in France, know, you they processes As

the good XX% on about to the into top-line the an EBITDA good number, $XX for Remember track, improvement are are we about margin transformation. designed our get not transformation. Home. gross of feel we we feel overall, ended range with the Beauty to savings, number. growth. But But all is million those back was It us XX% comfortably EBITDA + So

XX% expanded on about we good it, are So from and to track. overall so and XX% now we feel

has much challenges, issues have react arise. to much skilled the attract attack – more but as they to organization quicker always and You much, become

up. So have you also the been see that there muscles can built

Adam Josephson

thanks, – thrived your one topic I occasional Stephan, either and more a sort just have much segment the business since changed fundamentally it if been difficult just And just that’s Pharma manage otherwise. predecessor, I just just to say like one same last slip-ups than business. Correct + competitive and just that. of think would to Beauty wanted more The or you it under it’s under on has otherwise. took market Home over? Pharma you related just and like more your leadership? it’s difficult to manage still Would mean, you seems me seems

Robert Kuhn

But pin and wouldn’t sales. on predecessors declining the what growing of I was transformation or into Well, quarters flat this nine quarters of has seven current turned sales clearly leaders.

is a why their the development. in That’s a It’s nature so and win pipeline, better the efforts of – better important different of projects, of any that fundamentally good on business. their customer in project + of a a the on take the corrective we and rhythm, of result consumer-facing against fundamentally rates your are much Food that actions. question, just at commercial business. larger Home rates, that’s talking track you’re executing handle So And project on. consumer-facing becoming animals we macroeconomic our conversion so approach, cadence, fundamentally weekly a terms customer customer churn, Beauty it’s customer basis have constant businesses, different that + course, in to Beverage, But addition,

times room years the technologies, execute business business, whatever the so the on seven, eight of sown longer-cycle more the Pharma product we in much you ago, older towards pipeline road. were XX the a is long-cycle at The commented seeds quality is, Now great the a on. And harvest standards. it’s several so just down many put the success same, different it to course, so in some What we the much clean you instances and years stories. that six, five, pharma business. systems in do connected quality of We

can systems, as we across leverage on, operational therefore, And well excellence, talent. and so around as enterprise everything

So the see logic fundamental from operations another, different a business you very even is move timeline. business will development though the the often logic the leaders one that same commercial to has because

Adam Josephson

Thank you, Stephan.

Operator

you. Thank

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

open. is line Your

Ghansham Panjabi

Hey guys, good morning.

Stephan Tanda

Good morning.

Ghansham Panjabi

you a through et volumes the any guess, sense back going get trying off, previous as quarter Bob, specifically? pricing just in cetera, I’m aggregate, segments. how across can XQ, first to three to I versus us fluctuations for flow the price to component from resin just

Robert Kuhn

Yeah.

resin and think on Beauty Beverage Relating growth, were some consolidated mean, transformation about I segments then mean, of Home, + by on the basis So were specifically + as positive talking Food resin to on in Pharma. both pass-throughs, Food other positive Beverage terms and the that side, offset related weaker X% side. was sales + we’ve Home terms volume the implemented Beauty in we the the negative the some which in of in I + in growth primarily the had pricing about of part it volumes volumes, I on the

Ghansham Panjabi

higher, just rate XQ tax XQ, trying that’s on tax it’s impacting given XQ the increase the retroactive. then Understood. just because XQ? we assume Should And to guidance that onwards. I’m than being sequentially be retroactive and XQ lower the French and being tax nature the think will partly about Okay. rate of that

Robert Kuhn

to to mean, to That’s with have QX. I booked get lower it in along up, catch that’s couple Yeah. QX be is and essentially a got which QX, No. a be should we’ve good of – because going pennies we call.

mean, between been on basis. an tax rate XX% that I annualized yeah, saying our somewhere is and we’ve So XX%

guidance than – would QX slightly, tax but move it up less our rate it So definitely will where is.

Ghansham Panjabi

And Okay. just then, one final one.

had sales, out being called exactly from sale then U.S. a thinking pipeline was year-over-year, during Can I personal softer. And and you comments as your quarter. being give think how Tooling what it prepared U.S. you tough to mean, XX% terms care progressed of lower. more half you personal of in comp I second us you just broadly, in – business the more care insight the then, just down have the jury right, will of and had out have slowing to the trajectory complexities, lot the a Europe U.S, which consumer a Brexit, is is China like you slowed, as looks how occur. on going more to progress as holiday your relates sort But are we of period season. holiday just the as head broadly, to shopping upcoming et cetera? what into the indicating customers it

Stephan Tanda

I good I we we would think new project Ghansham, overall, say, feel have. about pipeline the

is project that not Of changing, course, Pharma Beverage, very new we Beauty pipeline. also customer has but well, good Home going do and see + fundamentally + and Food

is You’re out yes, the economy pointing clearly, slowing.

had customers. of Now, this strong signs we a but care I that see impact discussed, what slowdown personal some we business, as don’t from hear in on

Robert Kuhn

in slightly Beauty – particularly, care bit was then in in also Ghansham, care a that only we care already. between related actually of it’s flat, business. care, mentioned the basis, was and the U.S. other side the personal primarily Europe. And maybe a going not Latin And the was Personal America, Beauty Home on down and mix + a were down kind of two in down. and Beauty was little but was being geographic regions, growth the to then in being Europe while personal down with in that to we’ve The was it tie-in QX. comments up,

one mentioned negatively products is The Actual were Asia actually Asia we markets. that And exception all volumes care. personal that Stephan previously, down in the for Asia up in weighed slightly. then tooling the reasons on were of in had in

Stephan Tanda

doing is better, make rest Brazil would certainly America be. expected. Brazil it where The but we than worse little Yeah, the should what Latin is, would is one add bit I not a of is have

Ghansham Panjabi

Okay. Understood. Thanks so much.

Operator

you. Thank

next Neel or line Stanley. comes from Morgan of comment Kumar Our question the from

Your line is open.

Neel Kumar

morning. Good Hi.

Stephan Tanda

Good morning.

Robert Kuhn

Neel. Hi,

Neel Kumar

get? then if it Pharma curious, discussed think CNS percentage And your what level you of large do the represent was seen now? does in And you’ve of approximately CNS growth what portfolio can you how applications? I

Stephan Tanda

Injectables. area. consumer short is, give you’ve The break that Yeah. I nice breakdown rates, it’s Thanks, but Neel. back we a meaning detail. And in give don’t work on lot and also We only prescription, sub the rate, to it I really answer don’t think growth done the guidance injectables X% Rx, has the the categories. really this of by down a know Bob to growth mentioned further healthcare come into we and nice

Neel Kumar

Okay. range expect X% to to to your you Can at end the of to mentioned we think that the outlook, should I the in the positive core continue seen And your higher take year? that of then, you momentum that half year. continue second of Pharma growth in Pharma in first mean XX% half the

Stephan Tanda

Yeah.

very with in there comfortable put the out for XX% our that we We’re Pharma. ranges to X%

Neel Kumar

quarters I of And Karma Closure + from lastly Beverage. Beverage was what few just just Food you then launch? Okay. curious in next type impact do see the the over

Stephan Tanda

every but technology, needle. the move mind any new single interesting please It’s keep launch. launch, that doesn’t exciting – in any single an is product It

hundreds any started single flexible to the the but followers, move have And starts like not get needle, multiple then for launch rolling We they up the needle. pouch, and it will products. and move trend if of and thousands with get example, stand

Neel Kumar

All Thanks. right.

Operator

Thank you.

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

open. is line Your

Salvator Tiano

Yeah. Thanks this is filling Hi, my Tiano for in Salvator Chip. for taking question.

Firstly, very growth in you going the bit more I helping rate? a And first will on Pharma a question. stronger to any about guess, on there I if be if margin acquisitions and/or revenue wanted ask elaborate and financials? you Pharma. That Can your they’ll be impact maintain recent to it’s small how boost your little is

Stephan Tanda

size, both One profitable we’re and already bit results. Yeah. will is, very different contributing to excited our they in about are They are contribute a quite both. or

that projects, Pharma services. financials. is research – further and But not a importantly, play really are out are will build profitable strengthen those the So those our strategic are more supporting to it businesses

our fought that drug Gateway testing in particular, inhalation and years, strong particular helped businesses stages and helps really service small supporting the we Analytical, Nanopharm the in a we know, around services nasal delivery, early development, many injectables, Pharma you As delivery. of offering had again, nasal in also has

And projects the act and they with support to better that world. everything in add smaller just get can more support in need called us regulatory setting. start-ups, to from molecule. they and pipeline, allow source into get will trial customers the one More possibly the them the you pharma two getting people see clinical through process Companies providers the more into to samples service to so

Of charge for course, business that’s those services, model. their we

same decades is that Master we the guarantees Drug of deliver of then the time, of the and At course, business File device part afterwards.

stage many projects large early need the So of that not And services the they smaller these that’s really pharma model. are companies, pipeline drives and these since business. the companies,

Salvator Tiano

you for very on and X% building very revised quite been the much. be perhaps you just to on Perfect. time end And regard at did higher for a And now. with would towards previous you’re X% on visibility XXXX XX% that What you it change you’ve higher? you do to have comfortable some XX% rate. take any the question that to volume to Pharma? Pharma to And little mention Thank generally, bit

Stephan Tanda

previously that We change forever for and of range. also they Again, not don’t we into in double-digit segments, said see coming. had more targets back reason three by We tailwinds, a headwinds growth don’t way rates no stand Pharma. we And we number that for any but are just them. all our the we expect to getting by see certainly Pharma

Salvator Tiano

Understood. Okay.

and decline Beverage a sales from margin there bit, Food mentioned helped the benefit you customarily think year that cause were a ago. margin. because wondering, I little were any that, led And in specific tooling I’m did guess, good from pretty volumes your you a changing had segments, I Just that +

being was percentage a lower. for surprising So us the see margin bit to it little

Robert Kuhn

So Food + sales. on can bring lower It’s you I actually product higher sales, the mean, not had couple a margin. things. tooling And primarily I of give also mix which Beverage stronger margins traditionally

So that in quarter. margin the would Food negatively + impact the Beverage

Stephan Tanda

I to here. resist mean, can’t on sorry, I add

every it’s story. transparency, are after you quarter Of really and a course, and we give a accountable but growth lot of long-term deliver

every moving You will have parts quarter. single

for volumes quarter to last the injectables that We’re in of but + that second Food year just remember Pharma that one, we’re back very but business quarter is didn’t growth. half solid, great. about Beverage two, grow, were not talking

a Food + have business we growing Beverage again. well Now

look a the when single transformation, the not about the we a good at it’s feel good quarter. compounding further the prospects business. and with story growth long-term pipeline But So you of

Salvator Tiano

you very Thank Great. much.

Operator

you. Thank

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

is line Your open.

Edlain Rodriguez

morning, you. Thank guys. Good

Stephan Tanda

morning. Good

Robert Kuhn

Hi.

Edlain Rodriguez

So be for to that plastics? a see are seeing or Is maybe environmental seems smaller one. like good that multiple instead the you there impacts trend That’s to or from any expect And related backlash larger for that, bad ones single-use closures, to could of against you? products. toward

Stephan Tanda

And Actually, net sustainability. for When their products. a all rate on Well, if kind most of to the excellent – their commitments made owners, positive increase make think about of of will or us. not recyclability this that them, is recycled that like partners it, they they you brand need some question have the of content happen. Aptar

So we have to more commitments. them those help meet around how customer projects

with disposable one on cap previous on calls to water Lid, replace with bottles cap. example, the the We talked stays that for which allows about, Flip

and recycled products We have dispensing XXX% like products the participate on containers, we pilots be from making system. post-consumer that up in top where discuss Loop, We of can reusable reused are with also to content.

We recycled. food-grade with can that’s partnering propylene who people make are looking at

going industry meet push commitments have activities on. go economy. to more an many So, made progress to is and through circular and continue we’ll towards a going The those to innovation they’ve

that’s that projects our And ultimately, customer drives and lifeblood.

container agnostic, continue plastic innovate a aluminum container matter, commitment. or help carton a whether their that or We are or to customers or top meet of And on we’re pouch. and we glass really container flexible for

still this way. a the reusable depending even customer the out on and to the needs or XXX% consumer-friendly recyclable, we convenient can recycling In demands. consumer make experience in And what stuff content that end come

Edlain Rodriguez

you. thank Yes,

Operator

comment Thank Instructions] White Kyle next Deutsche comes the question you. or from Our [Operator Bank. line of from

Your line is open.

Kyle White

good the of touched targets volume above are Hey, on the that lot set margin terms this you the terms or also we But know five in Thanks long-term Pharma we at of morning. taking have. targets we been now, of my it the question. quarters I targets curious for a It’s there. target. about out in high-end have in

this that And raising you the of curious there’s know coming specific just these a or in an of anything gives if pause update here, up targets. in for maybe I have typically where so But margin you terms you Day Analyst kind target month long-term?

Stephan Tanda

discuss business. to I don’t It long-term target. any No, Day. really. reason But this is again, see Look, not stage the at change Analyst not very let’s the a

capability. the continue are You we in up a reinvest to connected need to on whole calls that building devices. we’re services around business. We earlier talked business building group And a

business, don’t reinvest the not and in in drive engine. will you So this business invest growth this if you

range got we the there. we’ve comfortable therefore, So that feel with out

Robert Kuhn

the highly I is And the mix the as division. would by margin past, said Yeah. that we’ve on dependent in add

good now recent so, we’ve active very CSP. benefiting across of in the see including the Rx growth division. packaging been divisions, We And all the of from division opportunities really quarters in four strong

So is on from going profile and coming depending flow, is margin ebb that the to growth where division.

Kyle White

– there? characterize on Bob, you the the of M&A that what out how see seeing also characterize then, And valuations you’re would And Understood. how right pipeline just you exactly M&A, now? that kind do you

Robert Kuhn

I change. there. would say out still much not pretty active It is

continue We up any don’t something market. or been any either close it’s but don’t the we but it’s where try paradigm valuations previously. see from in I stay that monitor at to, to either see the shifts change big I this significant stage, way down to

Stephan Tanda

Yeah.

an us CSP. have pharma like pursue like bigger seen M&A agenda, smaller the You made deals and smaller made active acquisitions, Reboul deals

deals, disciplined. We but remain look of lot continue a at to

the many doing We’re in walking we see away serious deals work. from after so us end, are some disciplined you a And announcing than acquirer. more

Kyle White

you luck the quarter. Thank and in good

Stephan Tanda

Thanks.

Robert Kuhn

Thank you.

Operator

you. Thank

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

Your line open. is

Anojja Shah

morning. Good Hi,

Robert Kuhn

Anojja. morning, Good

Anojja Shah

D&A. question give CapEx couple for is, than the going. that years? Good. higher an your sense can And this quite My next do in a also, year you capital And is of a of outlook us first it at level elevated you is where remain bit to expect

Stephan Tanda

that I take So can one.

of both it’s in increased that yeah, is there coming we from it’s have historical capacity from well our CapEx as About of the some levels. half – So, increases. been new product as introductions

strong talked bit that’s experiencing a been forecast. some constrained lines calls the previous growth growth of in that we think getting that Pharma the we’ve our in I we the capacity and to on little some due product about were

had capacity. to we’ve reinvest So little in a bit

innovation focus then around And our been has positive.

transformation half that million the we new of to-date. to CSP for that add the some plan We we of deals. in invest And as also CapEx of have $XX spent roughly about that you was of capital course, in the got acquisition, the those part then of

continue imagine, maybe I don’t through budget we’re going going out then, be question other best moving as a as from our we again, your are still to long next think that’s we the for And in year, kind negative innovations capital. And use profitable investments – flat – forward. here. see that investments your expecting ourselves. the make as our a of would on horizon, I we’re see to that maybe but capital as of I great But

Anojja Shah

tax to then, will in All know Any right. rate, And switching rate of the over rate the what tax should mid-XXs? I above And be the be French change. tax that well sense to because it’s remain going XXXX? the elevated, of

Stephan Tanda

options, left that comes vest. can have biggest tell still our several though out in to what, we’ve now are share rate restricted I will up it option price our whether from have tell issuing still variable and or tell The be from down. trend even I’ll do there shares – XXXX, moved volatility away We right tax stock years in in you we you exercises. can me to will remaining issuing you where if stock

was And good example QX obviously, quarter, that. of this a

an drive As in tend which down we the by rate. to all-time tax share we exercises, reached definition then see in option highs the will price, uptick

terms going this out ago, increase, on while we French raise I right. governments revenues, of trying nine what were it in to mean, French to was So the expecting decreases retroactive other are radar, big unknown tax the tax there six, is be our months the in doing rate.

say, So, XX% any being year one-offs we of range, rate would to occur. I may kind XX% that else be all expect that equal, next would minus in plus or though tax to the

Anojja Shah

Thank Okay. you.

Operator

Thank you.

of a have Dillon from from Research. the line Vertical We question Chip follow-up

Your line is open.

Salvator Tiano

and I guys. a Hi a count. of on the share have buybacks questions Yeah. little couple bit

a buybacks this Can buybacks. many if as done haven’t much year, how mentioned you us little update you you bit, allocated any? Firstly, toward have

Robert Kuhn

We like. mean, the we necessarily it what kind at deals at look year couple raised of everything the on did basis, look look our this dividend We We’ve an holistically of right. on the I already at side. look we don’t a allocation does again and horizon CapEx on Pharma earlier.

buyback. a But increase kind seen see an And not We don’t share really something. at will into count would from mean, really I it to we you. so tell I the we that to holistic amount say we’ve look That’s I all of like about try So, probably approach. target far. can gradually lock we

Salvator Tiano

unusual just dilutions. a bit anything on building yeah, little regard the that, And with to was quarter there in

it think bump the I sequentially. was on share a big pretty count basic

specific actions, So any were incentives? there

in I of now between historically gap the higher count; options. kind Does is and around structure shares kind narrow? think incentive basic more away the X basic for from mean mentioned we basic million to diluted – would a in you of increase And share this going example, see, share change count, but

Robert Kuhn

earlier, had Yeah, had as – I And strong We mean, a in we very exercises. option it’s in a quarter. I hard only to the XX,XXX shares we about repurchased say. quarter mentioned

dilution that Yeah. really like So that mean, the haven’t is and is share forward. I really run also for dependent share reason on what calculation price primary the highly increase. going count the looks I

Salvator Tiano

Thank Perfect. you Okay. very much.

Operator

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

Stephan Tanda

the road. We for joining summer. Thanks the everybody us. rest look Enjoy on you. of forward to the Thank to you see Great.

Operator

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

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

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.