ATR - Earnings call transcript Q1 2021

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to Aptar’s 2021 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. Matt DellaMaria, Senior Vice President, Investor Relations and Communications. sir. ahead, go Please

Matt DellaMaria

everyone. being Hello us Thanks you. with for today. Thank

Stephan on Vice and today’s me Tanda, President call CFO. Executive Joining Kuhn, are President Bob CEO; and and

to accompanying have release slide press and been Our posted our website. deck

you and can the you on presentation and left. slides the arrows the the advance clicking over following on on hovering on If are screen website, along by the right

Stephan. statements. conference Please we results As what to could includes post call this on turn I today. also of call that the are now will we filings always, some to SEC like the replay forward-looking refer our factors to from to to Today’s website. call a conference discussing would differ review materially actual cause over

Stephan Tanda

good I after this exception. from highlights across and cycles. period are In Matt, slide a everyone. the end on Starting most variety recent you, patients that And business well. quarter. you hope will no makes a is Thank three, of consumers a economic We resilient serve doing and through find you the few morning, market.

the delivery have that and widest We leverage active dispensing we segments. our technologies across reporting services and solutions range material science systems, industry's drug of

on IBM, companies commitment Top our capital, Microsoft, and customers the benefit JUST focus large development, environmental help new and Aptar Dell, the that among research Our from was reducing several named XX allow grow own sustainability, MasterCard, companies. to maintained other impact businesses. strong also alongside our and their innovations recently them to us for by and It has

increased to and the was first increased of reported compared quarter of X% results. in press yet our in X%. As the you saw yesterday, issued not factor quarterly course, sales and is sales our This major XXXX COVID-XX core release,

and comparable our margin EBITDA segments. three adjusted our segment pharma absorbing shift year, an while the to relative achieved also mix the the mix prior within We across

closures. continue markets. consumers increased below Though line quarter resin our the to test increased our and demand the the Price price modestly also our our home the costs was In distributions, for a growth including the declines Demand our to beverage of in solution, sales healthcare demand market increases from during stellar segment on beverage dispensing for vaccine consumer grew as food are the performance pandemic, deliver and to injectable driving food prior COVID-XX material passing resin cook contributed year. Our on for prescription this the active we offset strong including at customers. those increased that innovative drug adjustments. components science supplying some for COVID-XX demand kits, pharma and top

customers mentioned fewer incidence when lower guidance and down pharma of non-critical have of for allergy visits resulted and drawing illnesses in we giving As certain cold delivery levels doctor inventory the respiratory other the treatment flu and had quarter, devices.

due We and increase, well continue sectors personal markets adjustments level the retail beauty to home and of beauty activity the receive as sales positioned In home, and declined niche care lockdowns. continued chain to to related care sales to to the the related pandemic beauty while transitory. ongoing to market supply pandemic healthcare be related these low

market. half the year show optimistic recovery second of cautiously the in that will are a We the beauty

growth beauty pent-up other to to capacity in also bring in post optimistic our will Many market for contain pandemic. are remain increases offset raising inflation of key feeling to the help consumers that the are beauty manage products demand normalcy We that of includes investing China. lives the a customers harboring and areas raw costs, prices maintaining adding while initiatives including to and that in costs material supply

but positive and we also go about outside we recover seeing CARE to as the on and more category the to addition trends expect beauty small care in move In the consumers market, are U.S. hair already

slide COVID-XX highlight from briefly convenient to two access technology our received that breadth comment to several was the the that on offerings. new of product Emergency new product will tests four, introductions science selected like active without Turning to the Use material would I In launches, and pharma, provide doctor's Authorization These tests at-home FDA. to need recently the office. to protect visit testing our

is was environmental to Pharma. integrated would intranasal that device. In drug our for to beauty to in the that nasal Naloxone moisture market, continuous with new our diagnostic our Latin approved landmark's pump was powder of for prescription which being In planet accuracy. ongoing is new distributions antihistamine kits allergic spray technology the indie area. shampoo delivery in P&G the in most nasal chosen COVID-XX continue rhinitis recently our important against Europe powder-based Nasus Our refreshing support pivotal conversion closure recent the with this these confirms a P&G being to was trial And resin injectables In KIND impact treatment in high-flow unidose we conditions wash. treat test steroids vaccine into Also regions, all in their face Native. by recycled protect and capable nasal by otherwise an with spray post-consumer home, and device and market, added by E-commerce combines India called used America. their selected various projects brand other This

Guilty Dove also Flora purifying products for Unilever care for PCR bottles by pump in-store and refillable and the Body In for are Gucci brand solution we body supplying providing the in aluminum is perfumes on Shop We pump to personal clove our wash. fragrance a The Coty. the Europe and charcoal hydrating featured

China. our jar la for food skincare de the milk China. infant closure In for is beverage and after instant nutrition Crème HiPP Europe in combiotic L'Oreal was rich selected for Revitalift its for product airless and Creme, in and facial Finally, powder using

dispensing Mike's Sauce Original Original condiment and in closures valves for the mayonnaise Honey in condiments our food Berman's products Our featured solution Also dispensing the several Hot aisle barbeque, on jelly here ketchup with are Brazil. Sauce for closures inverted U.S. and are in the Hot

beverage in the China. will in results. featured our beverage on additional our on will closure that, turn functional provide who comments Finally I Bob? flavors over well-known With is Bob, market new it drink of two to sports now a

Bob Kuhn

Thank of details and I morning good some with around first you Stephan, the performance, the starting quarter through walk everyone. will five. slide

our non-cash million related Stephan share Technologies, but $X.XX, $XX I increase to reported strategic circular Current resin As of This or $X.XX of shortly, X%. sales pursuing our fair reported of over first. first pre an growth Ultra-Pure earnings investment to X%. prior value economy. to of XX% reported stated, go for PureCycle by per our investment. comment in year. the quarter, sales share we up into We an earnings happens which our growth the with market gain core be of included in is per one increase on our of earnings part post-consumer investment want period that an day will a the partner tax be equity will

six. Turning to slide

per year, effects. First gain to $X.XX equity excluding share on and prior the comparable for the on adjusting with restructuring quarter investment the per currency a basis expenses, including adjusted earnings share increased XX%

of prior the cost business the total shift results, quarter-to-quarter. compensation sales our the performance positive earnings as from our with And that impact increases. increased across core Our that even prior year. mixed from X% the Aptar's including receive $XXX then EBITDA summarizing translation of deduction well can adjusted reflect benefits, as our currency XX%. fluctuate compared with this tax certain included as the in business effects EBITDA Briefly markets to different adjusted to of segment stock-based the million rates, year, also you know, margin segment tax the across approximately and pharma resin was divisions we and

earlier. sales the core compared prescription sales healthcare growth market for injectables year, market increased prior for the active about components. sales the X% from XX% material total sales, for Core higher the approximately to core our and remaining market is X% the to reasons sales decreased sales our to of to of to vaccine sales due solutions And growth decreased science to distributions. Price Looking supply the the of Stephan used related with containers vaccine at that active X% demand consumer COVID accounted by market probiotics. mostly primarily X%. increase one-third our Core increased for mentioned growth of

and albeit by the continued market market increased retail, negatively passed through XX impacted the unit to possible, travel market process was beauty segment, raw caused in for lockdowns, duty a are decrease especially demand on sales some our XX% homecare sales where home to beauty EBITDA Core a strong and have significant to through and liquid XX% sales. core core other increased due core material to and and growth adjusted restrictions, the demand cleaners segment's strong which our been sales sanitizer typically margin quarter for personal X% sales in our global resin the automotive lag. basis, has and soap reduction X% and traditional and XX-day Wholesale a the to disinfectants, market products. localized on and free decreased hand care a Turning increased to due continued dispensers. to With Europe, by in the that XX% which costs, was

in performance, market. of ongoing Turning to to achieved had our in XX% segment, and core due the beverage increased primarily sales strength a solid margin adjusted food which food EBITDA XX% segment the the

to continue to at market the increased increased sales trend primarily dine prices. the Looking Core to due because at the of each X%, pandemic. home the core higher resin sale as consumers market, of XX% beverage market for food pass-through

healthcare the Moving the to inventories. outlook remain expected most to prior from demand our quarter. markets in conditions we our as slide year our for to consumer summarizes drug in quarter. underlying which pressure prescription existing will customers what seven, The off compared anticipated and for Current dramatically change second work experienced the under are to continue of first demand devices not

difficult other beauty, prior second easier of However, was which period comparisons to impact of have in lockdowns. our some the year most we you the markets, pandemic quarter, the consider will when including

adjusted excluding investments earnings of $X.XX leverage per to a range quarter We $X.XX with value gross that In The is XX% On closing, capital for X.X. balance have any XX%. per tax the we sheet range in XX%. restructuring to to of approximately in basis the be the ratio rate second to was a estimated and a share, change expect share. a the second fair of equity quarter strong continued

On the it net was XX%. basis, approximately

we provide invest forecasted continue confirming year million the we to addition, expenditures few and a closing this we Stephan in range time, $XXX of capital a range will Q&A. for at At to of projects, before to innovative move are comments our million. growth In $XXX

Stephan Tanda

that I'd closing, Aptar we through that resilient Thank markets solutions solutions on our Bob. and provide, cycles, technologies end of of variety and range and R&D, the mention like In combined most to company pipeline. wide The new serve with broad slide eight, very build the we will innovative to you, customer makes exception. upon no was further that period a recent commitment economic solid our

is respect have sustainable for mid in economy We advocate landfill the up past when recycled. environment unchanged. look look and the global induced which for like questions. profound product view continue future your positive long is and going lower that and for circular a would will designs, Therefore, We quite promising. we to we packaging term I facilities, reused With our forward energy drives to a is pandemic to free long that, consumption, of open all this for the term benefit stakeholders. And call crisis, after the

Operator

all interest of one participants, questions the the Instructions] and question. back time, Thank to Then please into limit come up In two and yourself fairness queue. you. follow to [Operator

If as questions time more you have allow.

ahead. first go Please Bank Staphos from America of of Your Securities. George responses

George Staphos

you trends the I in XQ. what less talking on Hope same a change the XQ, for Thanks you're when guys. you doing very question the well. guess change had XQ much of in point occurring Hi, volumes, about in assume my of Bob terms first you're details. year-on-year Thanks not versus about saw rate and, Thanks really at talk in saw more the I on clarification. question. that for much. you XQ or is I more Stepfan, taking

are XQ flat, You're not versus saying volumes XQ.

clarify that? want Just on

Stephan Tanda

and demand when reopening pattern the in laid side exponential, which depends some will Yes. look recovery on think I home, But last sequentially destocking but was full the see you pattern of two will we've really strong not improving overall Basically, compared pharma Europe of QX. we in yet. and in to out, on we continue the and to course beauty correct. very what quarter year, to That's saw bottom, growth, that which swing similar the the be

George Staphos

[ph]. about health pharma If and the additional talk we RX there, and Okay. Appreciate both color consumer Stepfan.

going one, through we're begin you've So context inflection if And us, the to through others this see that's in past? going seen in then, can be, think you still remind you destocking those destocking. that relative when anything well. unique the the that on about period that some Is categories, there might to whatever volumes we'd as we're

Stephan Tanda

Yes.

a can we we behind last buildup multiple see the two the speak indoors, season quarter. I've learned the is homes, the this with usually season, so in been pandemic think they're you be us Bob is up. the as in certainly manufacturers, drug potential getting to bit happens, stopped. were making our But I to hindsight, result muted direct at everybody this has third flu people history. course, inventory and masking that a in it and quarter people in buildups year, and roughly, see, sure of expect a customers, It's -- there a when at at some levels non-existing the for trade, ready allergy now, clearly, as And were staying what

strong the On season other also may go if you and affected. is out from outside, on nervous we to the rhinitis of season bloom its in bout. will And will personally see I have we we saw system in strong. attest allergic a central that hand, come unfortunately running allergy have And doubt be people the they that it no delivery my the to And franchise. that continue back nasal people hear with And course. category. Can the voice of in flu can Glenmark conversion full run course, as then, top are you approval,

around return. history. a Bob, to category and speak believe can to for no of the more reason maybe X% there's So not not But that to will term long six for this pharma rate XX growth bit you overall

Bob Kuhn

No. Yes.

two Stephan. I is think I Typically, we've what nailed seen it, quarters the think in you about past.

we grow QX stock Stephan mentioned, this So do see to to and I us others. returning above any to think, as seeing starting in compared

George Staphos

Thanks Thanks, one Bob. quickly. Stephan. My last

that Asia in was -- was lingering Or still that you Could that And quarter? mentioned regional we weakness there? you Thank relatively trends seeing come Just beverage event a about guys. back? the flat. you is the the talk are in non

Stephan Tanda

Actually, China, a as already know, Yes. reopened ago. you year has

no is [Indiscernible] in So on-the-go exception. they're in what full we're category Europe missing swing beverages Clearly beverage and in there is and the U.S. the the

really back is to is I four think U.S. going U.S. coming the And the in the is just As New months now, normal behind weeks. this reopening really York Europe the core of

more together. going in see the Europe act to together we vaccines, around that's thankfully, Now better. is things coming open. XX. France definition to more also May doing are Hopefully that its UK reopen going getting in stay and Germany's

Europe that also the maybe will months business. a certainly quarter, we good behind U.S. So for some have on-the-go that And reopen the confidence be for very beverage about four will

George Staphos

you. Thank

Bob Kuhn

Yes. I the would little color on a side. more geographic add

look or for Europe. in region every in up down the all flat And was other generally for was except segments, if across segment. the Europe beverage either really speaking So Europe we just

think that all the going quarter Europe reopening and three I to helpful beneficial are mid be So about very across segments. remarks

George Staphos

Thank you.

Bob Kuhn

in mid-quarter Mid-year in see we'll in Well, turnaround. reopening May mid-year May mid from Europe start -- or to XX, things quarter

Operator

response Your Blair. from ahead. William Please is go John of next Kreger

John Kreger

the you you components And we -- of pharma go is of business? that'll quickly seeing you of the of pandemic? your kind that have get much. maybe very maybe the within term about beyond pipeline But Thanks reiterated long kind recently, expectation the long for you been various bit? reset just think little term Stephan, what then to just guys the that as your back do opportunities just and tell What Hi. you pharma a could sort business.

Stephan Tanda

kind things single conversions Yes. allergies the have XX% walk the the Rx, line with you in you out Glenmark We continuing We Naloxone. don't start in growth going the just geographic is X% system just that clinical Western punch rhinitis, When see will nicely. continues And really of course, And then, to you through the the of the is business additional categories, allergy Powder the called see change low a to approval. clearly category but phenomenon. then with obviously allergic long business grow on, any base nervous have digit, term. central not to trial as

Just this dose morning a Hikma, got higher approval called for Naloxone KLOXXADOTM. drug

we category. and see flow central So, good the in project system nervous

injectables, of as the sailing activity, and rich target discussed calls whole So the environment. we've capability congestions, then on kind Aptar's And new as the recognition you the course, COVID the of heartened before, part supply vetting of been chain. consumer all go of we've project the healthcare, really with by of ophthalmic,

Now, but the we active see COVID packaging, player activity in tests. provides are a That grow that it's probiotic continue calling then out good solutions of still is this we the technology in-home powerful grow. small continues another we're to diabetes, And there. approval of project whether large the category and proof for market, And COVID. tests, course, whether point for it's important to active the material the business

of the board, XX%. to the lot across reasons So support X% a to

As that some XX% no inventory X% above you continue see a been well to that, of that. to know, growth. there's reason quarters we've not drawdown, number but normalizes to of for Clearly,

John Kreger

a your then and little the from it also follow And for That's bit of and helpful. how across productivity supply chain materials, facilities? Can you're sort labor just up. just you. And both of Thank managing maybe about a you standpoint talk you're seeing? pressures raw any

Stephan Tanda

Yes.

on. air rates, are freight have a to availability, we I in Clearly, train losses are there higher the And the we availability, Clearly, are clearly, course, that's again, we think up we, is cognizant pricing. to on you as increases hire making slotted economy people, it more I'm as rates, quarter. that cost have And there very environment. sputter to pass in for that them, speed to starts later freight and friction there. all we on things. But pass more inflationary logistics hard working touched of price so of whether sure the labor

of put those Some some will through. be them announced, of be they'll just

as working time, to and speed. button said, suppliers clearly, you don't so are but and economy push I losses, There goes so our our just we're So and customers. those back the last through a friction do full

John Kreger

Great. Thank you.

Operator

Mark from Wilde response Markets. next Your you is of Capital BMO Thank

Mark Wilde

Bob, Stephan, morning, Good Matt.

Stephan Tanda

Good morning.

Mark Wilde

Stephan, I out. want just to to start

you your beauty little what color one a customers. more And fragrance week, could from starting and on in peers you a some you're sound us your give they that. little suggesting see hearing of were fragrance more to about activity. If pickup in Earlier cautious the that was

wondered, update can I around So if and you're just of kind what you in on fragrance? world seeing beauty us the

Stephan Tanda

Sure.

it what you're of course, to. depends those on Of comparing all

this you L'Oreal But quarter project clips highlight within to If comparing you're it's of of we compare if project activities were that in of Very a pandemic for with last happy, some and pre two better. quarter around to level time we two the world, China last bit steam. it year, walk course, is But example, year. India worrisome. full is good.

will in But on obviously now. In to and it bit significant America through pandemic, not there. beauty our the clearly, opening numbers, as it in factor Latin going impacted a while full a there, our active as start fully other the that business. impact also the with concerning remained has pandemic level very what's in the there pharma So, quite see impacts. is regions. -- the business U.S., big has lesser resilient And we it's much consumptions clearly hasn't the

key course, where us there. Europe question, So business terms not of our where a in U.S. reopening. And of And us And is a question important part Europe. that's improvement significant because is, for is. the that's we for see the of very is

us of its launches duty And travel to As in three their four puts the in in in have very bunch that planning. addition, the triggered. -- in positive. I of said, clip it's half. we impulse lag reopening the get free that expect important a very the are customers months then resumes course, activity Europe. of second squarely for and And purchase They That

events not they're working then, But in year are Day trigger Europe. the final to And to Western with the hit And in going We end them. activity world. Mother's Christmas pull next certainly, resumes. not fall the the are of in going big until we're China the travel and in

Mark Wilde

then, of to big headwind in follow And a a couple then, the items can all around estimate in helpful. talk quarters? And just financial That's resin how first and been both about that second just on. of as some quarter us dancing tax a briefly recent first you Can It's the lot quarter. give rate. of be Bob, you sense you

Bob Kuhn

Sure.

roughly, there's was actually substrate on majority on that increases QX. same of We're are segments majority kind be EBITDA. $X beauty aluminum impact resin we across resin, The inside But other negative the relates that side, So, that the metal million to And contributing resin home. there. also increases. going about impact seen had well of anticipating as and approximately to of like all we've in then the that

you if it, about we'll catching for the QX. mentioned, price up passing be be as we'll but increases, essentially on So think Stephan

are QX. to in While we input continue that believe the to going costs increase

catch QX in some stability of on second second half the again, before the we So half the year input assuming be year. increases, of it'll the for costs

the tax rate. On

money, of items. The legacy price sort the which is from delta this benefit book between stock-based additional for the most we exercise couple was compensation, options the in significant get versus So, the expense. is a really

blessings to with But price to see So well. had tend virtually it's do exercises. you as share additional in option those up had, And having our are that forecast. then QX two run the the get impossible we you can

in a seen. real triggering That's benefit increase good price but share So outside it's deductions, that's tax a of cash that's the the the thing.

Stephan Tanda

don't Yes. [ph]. say I bad its

Bob Kuhn

a not savings. That's That's deferred a right. cost benefit. Absolutely true

our state the solutions does impact which active also So tax tax you there. that rate. have Alabama, on some that down see benefits law material lesser did portion But in business changes

that tax kind XX% we rates typically into nearly that for was slightly exercises rate. to kind So date already guided to putting that the And than XX%. at of of And lower already. have see looking baked you

to what challenging outside that really is of it to relates kind those to forecast be are really, it's exercises our going because control. So things of

Mark Wilde

much, so Thanks Okay. Bob.

Operator

Thank you.

is Ghansham Your from Baird. go next Punjabi Please with response ahead.

Ghansham Punjabi

Good morning, everybody.

Stephan Tanda

Hi, Ghansham.

Ghansham Punjabi

on segments. and home beauty the the on So,

that on a actually then to that's just vaccines like So exposed out obviously, over consequence COVID coming that that, faster the appears than model. cetera, benchmark we year-over-year of looking on markets of COVID of our I been and as deployed It in looks and that Stephan, flip have basis the And time of volumes period? eight et you're a in issue? between at such bigger so I'm see forth, rebound side maybe how ton in a cetera. would relative down on as this a commensurate so has to of But some you flip the mean, end about progression and quarters. there terms the for happened Europe, channel destocking, the just markets et would side get of

Stephan Tanda

Overall, think exception in some Yes. with the we the pandemic. went misses I before care, hair U.S., personal care, of into

we certainly I are market. would market gained our in we've line where hear that from areas people been certainly I share. with other There think have

about especially we of with the back reopening the the and least free bounce things go speed fragrance Europe, I the certainly and sales, cancel say, assumptions, of So it. line each that I though would commensurate on sales on will at in out you're And with making duty market. balance, but also think, of travel other recovery, whatever are assumptions things

I So way describing there. it. can different I'm a maybe give you how not of much Bob, sure color you But have

Bob Kuhn

think. No. I don't

it. You adequately described

Ghansham Punjabi

tests of for mean, the Can your front position China seen touch separate larger forth into of products active like customers future leverage maybe And -- associated you then just your you the then second came of velocity opportunities testing et level on of potential you a and on Okay. a for some material clearly, Are And that other you've pharma? reopening to technology I in they in sort cetera. terms material, there active and that? Europe? beauty the and deployment within as our B&H question activity vaccine the so the stuff flip in being side with for COVID, specific other on COVID. of of customers, used so call the verticals increase growth question, can in on as and for on

Stephan Tanda

address the But are of larger capability level the filling middle share me for address still lot execution activity mentioned in and very execute, in to is given of there -- China going I brisk. here current let we global of capability our their many there's current to question. Bob larger and shifting I'm given first Sure. very customers projects a That take filled Asia, of therefore across I larger active the especially And our as is appreciate customers our to and high. materials. part And in being some while let before, footprint, course, on is there that footprint a Europe. China. regional. while And our and had much growth, activity the Project wish of footprint given

new happy gates the the I think, the gates and new with I analogy, waiting fragrances think, level have are have not to during open. launches they're In in China. different Europe, the horses pandemic, with very in And they for launched ready. So the but clearly, activity people their

of fair, pudding of E-commerce that, are proof need unfair also in activities launches. more has having happen. certainly those to said all the the Sampling the in reopening the format. maybe reopening. is But We on we in share picked And up part Europe to

Bob Kuhn

active And so, material the on solution.

diagnostic category. in a presence had So, [Indiscernible] the

using application of think test There diabetes also strips, diagnostics. well. obviously, some form as of you test kits If DNA a technology Europe our and that's in that

So COVID testing for this interesting exciting whole us. and new really is in-home

customers well. on was clean also and as a You're pre-pandemic kit even

space at able that And lot. a people You just more lot speed it COVID already provide certainly this to in of a this and in-home about will right? COVID like The just is some do you being talking have the increasing space. are has out the there, test a of you testing. So see technology than but be crowded kits more beginning space,

-- strips You flu, before you or have to a be could first you doctor. out And could your have separate for, for you -- could the the test for neither a that in can for imagine step reach you home name it. bronchitis

So think plays can we'll progress. we definitely, space like the it see how out. would we to But and continue all it

Ghansham Punjabi

much. so Thanks

Operator

question. if Thank and questions yourself questions allow. you. time have two and one In more as you fairness limit please all up participants, Then of interest the the follow to queue, in come to time back

is next Please Hajde Gabe ahead. from Your Wells Fargo. response with go

Gabe Hajde

comment But global in Stephan, was these distribution Matt, if successful interests your some other all you I'm adopted the connected in small embryonic. once leverage I I guys the performing. And And in I where And cultivating enable appreciate footprint. could on morning. thinking joint of Kali how thing kind widely to the relatively been and and still has technologies of nurturing terms past. there some ventures/minority and then more of of seasonality kind Aptar they're that Care. devices. some -- about at of kind good curious maybe Bob, are and

guess? I So stands to you, just anything that out

Stephan Tanda

bode a of investments seat with usually internal seat front are there, R&D really complement to a in-house acquisitions investments some combined, organic innovations but rent to activities, we These necessarily organic drive was investments. Maybe with or row and at really rights. growth bolt-on for We Sure. license of look M&A innovation business, capital our just really complement context or complement Venture invention our get everybody. and kind Venture venturing

So linkage I make business. our that think with good

Care. you mentioned, So Kali

in space. gain invested a and device in M&A system terms joint more in in bolt-On area, course, and we've of Eastern we've the with joint acquisitions Propeller, good at we food we've containers some in investments, Europe, sold done which in And retail those then ventures Loop. between and and or are at the stages. sometimes a connected that looked in Of the on And second re-fillable the was Also made venturing ventures and

already pipeline China, BTY leveraging in capability an China. would I mainly, acquisition our So beauty project highlight to are But really stages. we in is in built now which their

rewarding very area. a in by So this large, is

from view. win capital a point Propeller. gain mentioned you I Sometimes of already

becomes organic purpose. recorded But happen. we Of course, main a that's for food I moment, not no that make generation with the what quarter. was main it seems food we materials to has sure gain That's need. is make purpose purpose the our really these a that's post-consumer full and And to market if did this certainly PureCycle business. grade on mean, advance gain PureCycle very the capital purpose need investment the really paper promising. we recycled diligence, But the that's that getting stick we reality, and We basic into innovations They're certainly polypropylene And the when like make the advanced have is And But degrees. investments. really they're really a efforts. due sure our them, we big if and for polypropylene great. because a recycled certainly, seen we of also technology grade purpose PureCycle intention the

Gabe Hajde

or three plan transformation down years comes give question next the the ago, or guess, I And to initiated kind restructuring of that take. you. Thank

just bit in that I update kind I to consolidation volume But in environment? And was of guess, savings. again, threw pandemic and us yield some given to [ph] wrench us delayed progressing. the still if you stability a back on operating I came mid how could million think kind teens a you normal the think you obviously, it's are sort understand that. world outside home, little And curious for the of envision margins footprint I of those more again, guys in some $XX beating to efforts. would environment. then, in I supposed assuming have guess,

Stephan Tanda

go. So horse certainly are analogy On used the ready pandemic locations we your they're gates point equipment being Yes, question to as ready And the the the ,yes. those expectation. the proved on in that equipment is around, optimization what are footprint the the last and starting The answer is short That delay? up North delayed. with more have as challenging. different moving American to

this the But through the us middle should be the of of will that middle it by done year. with So be year.

of go be the margin should in American transitory and point about and specifically by will the a between point. optimization the footprint of a footprint material that the delay away year. on of optimization Those being done certainly, and So raw middle drag North margin are another

Gabe Hajde

Good luck. guys. Thank you

Stephan Tanda

Gabe. Thanks,

Operator

Adam from is response Josephson next go Please The Keybanc. with ahead.

Adam Josephson

last and tech Crystal Thanks. Good Lake well Justin went morning, that everyone. over I evening. hope Fields

Stephan Tanda

Well, on years. we comment several won't for that

Adam Josephson

Stephan, on just uestion. to Gabe's up follow beauty just of on and home, couple a

you What is that hits, the related have in beauty beauty EBITDA recover you not last you back you fragrance Europe margins can in the and teens mid is year? and expectation or yet concentrated is say, of terms good think back appreciating So, either that when EBITDA get and coming back roaring do get million as on lost reasonable home. $XX And still to chunk resin of -- a lockdown. a

Stephan Tanda

can I volume what normal we XX to range and COVID a we get build environment, that said post guidance before, from best give there. back the think should I in is

And we're a beauty guidance. the and standing is, we're in us than in post resin environment. to the the a going We've happen. home will that set the So yes, put never this the year expecting But its volume to with beverage I'm by business question calendar. that still normal is all when it pass-through, COVID later. would in business. slower But pin ago, be and it not is food that pandemic year a

about So that mentioned, the inflationary addition footprint And year. to on the American will I'm the other increases. very I middle of North optimization passing in confident done the as be in

Adam Josephson

initially cetera. Gabe's was in has one following That Thank fine. much expected gone That's questions in three care then, in to learned of $XX you. issues, years generating the has What et you're home. cetera, What on up learned et have and personal happened what of over beauty have differently? you COVID, ago, savings. has what what million And also as on restructuring And you terms currency, Yes. But lessons terms that you to? it gone expecting compared of since then? of since

Stephan Tanda

you different go through the elements. If

in the things. it smaller And creating really terms correct up before. practices the cadence. the One doesn't contemporary in to two of forces. front to customer of entrepreneurial cadence of sure longer car divide best making from then So, can is And then, of the project management, restructuring you accountable advancing terms customer business, conversion ditch course tracking, go end into project, practices in management, salesforce you as units with weekly dedicated sales moving

happy I'm with what think, did we large, I by and there. very

are never with this. We finished

-- you never training to need You're keep those muscles.

For example, the building as here, end, needs we very this there. price But from be happy, period. the keep increase entered again, commercial front large, by to and we drained muscle,

And place stronger that. very with entrepreneurial in small leaders their happy in We much units. have

there again. I you of the think some longer, earlier learnings took it had schooled are some that plan have control I end would as that you control cases, spoke Sigma Six we the who I few on and sure and cases, to is not at about to -- and the operational make in hoped. do know as improvement, plan back. was I Those don't of project those back a a the each in good with go slip have In

make that moment, KPIs The door of the change, and the for is happy that's probably I The At changes learning. next change. for those on sites. changes to out par place. course, operational organization this that to with got learning irreversible, the every So you with but guess. them The you performance you don't are the make sure the lifelong or quite paper people those I'm a time, move right stick, make

done back partially shared not move I time Then the That we've are through piece. is worse just of progress to go improved, Bob think world use to when improvements, we by Czech Europe. industry in a out indicator by center happy we just there get deal you to we office. piece The how course, up when period do average the operations. are Republic make in quite these streamlining benchmark of the the -- fixed Over how our service performance from worked building than now we moving one volume cost Only is class. with. cost same continues. happy with learning being much certainly that reduction safety and with the in close But fixed the easiest the them. one piece need that But And what to brands to

improvements, now able in pandemic. doing. take to having all expecting going not be operational been Now for Spain, by into take in that, the though got plant But plants said offline we the will which hit to significant certainly the the in plants than three in northeast, the the transformation, we U.S., Europe, were the In Ireland, quite we we that plant thought. we have sooner example, were offline enough

So positive also there's surprises. some

we've long that to the the I And massive that to capture question. will very to of East. think, course, overlay to we East. Its never in we all sure the is well-positioned are your growth continue of of And kind shift to growth done. make answer the of have

Adam Josephson

it. No. Thank you Stephan. appreciate I

Operator

is ahead. Please response next Neel go The with Morgan from Stanley. Kumar

Neel Kumar

thanks And In you've strong growth. Great. quarters for food, very a taking of question. my few had

see can COVID post carry And of consumption the the are year any as that into through that the think that half down. market competitive? to changes second at some you You come trends starts in some home sort of

Stephan Tanda

consumption, underreported. place we really beauty the doing roll probably a job. and Well, an back, in competitive mathematical is excellent And pandemic strong coming beverage result with there. for doubt not team I only in no in-home And It's of have to We wins second have growth to and attention in strong projects, the is continue new but that food, also will team on but the the the bit expansion grow a Asia. certainly half. they a home,

Neel Kumar

That's helpful.

Bob Kuhn

get the -- puts say, post advantages, we're the going and to takes. post-COVID some In I'd in suddenly

a on more, things we on more your like into the lockdown rebound. which to getting keep is washing categories to sunscreen, that And are of a of move that dining we should on expect struggling Even a stay. we here food what's and side. that consumption. we've would part that out in-home like vacationing that safety, is and is how see stay. the business, robust I food that people out of as Remember little that going that environment people a of Is the Is we'll got our the some eye and if food But bit those, to and an pullback improve. cleansing see think hands important out certainly is. sanitizer

we other when go as ones and the that. other talked ones about may out goes like come rather the back situation things improving And one people up, down So beverage up. -- the on one traveling certainly is are

Neel Kumar

are a Okay. working of lag some of resin work impact then And differently? then to seeing, in and of at from the inflation capital? raw prices resin? Or perspective, cash XX you're the day does material through a also input negatively raw contractually to the similar flow set materials passed higher And terms XX non-resin you that

Stephan Tanda

are the aerosol it cases, in So bit approach. in talking those a component and products of general, that, little and more more multi you're valves about like complex, pumps to like basket increases, many substrate of other tends be a goods on things

we'll when trip tripped those pass of yes, some with some increases that on. certainly thresholds, have So of certain we it And we've we those. seen,

ship could to internationally, costs, due think, but like would to higher I probably of to primarily through levels. is would pass capacity inventory more On things and disruptions million I the containers flow issues that. be And that that last supply due kind I your some year, year truck decrease think an So chain on cash we coming from quarter Not that. that additional partially saw in this question, in $XX experienced QX. slightly it's the is that to higher free first of in we cash say, flow slightly having

into So in we were of carrying plants a past. is see little and finished working bit that have we levels also goods transitory. and higher our I process the

Neel Kumar

Great. you. Thank

Operator

Thank you.

Tiano Salvator is Global. next Please Your ahead. from Seaport go response with

Salvator Tiano

Yes. Hi, Bob Matt. and Stephan,

to basically personal I little So touch want firstly, care. on bit a

I'm competing been shows X% competing remember the year I was Well, I demand wondering growth And correctly now? that still the on if that you against saw? a X%. growth against. this care sales last core should you there's if destocking And mentioned that in year have you're year, personal deceleration think you year

Stephan Tanda

Not sure. I can't follow your question.

Salvator Tiano

from yes. So --

Stephan Tanda

Go bit more to personal I going just care. give on was color ahead. little a say,

and cleansing, little and sun suffering strong product on products a for care in personal product little a our that's a the see very we're bit category. lotion And from that still body on typically So, sanitizers bit the still you'd category care hair side. We're side, lotions.

somewhat that's from growth category? cleansing So personal moving that coming

Salvator Tiano

price My is and and as can color food provide, if was second was in price well? contribution think, also, health growth? core beverage more perfect. sales beauty any what the on and meaningful which pharma you I in there for question Okay, in some And QX

Stephan Tanda

Yes.

overall impact which top, beauty it company XX% on on had then is impact about whole, it we And So positive. on as an about and growth. positive X% a positive food and the percent was start a a stronger beverage less at core the a X% for than overall, the the was on positive It sales of home.

a about So offering. half a percent

Salvator Tiano

Okay, perfect.

software QX in is, from you obviously QX roughly quarter points was my Just example, for my look last and growth tailwinds. quarter worth COVID basis this and question. last demand. XXX at healthcare and But understanding also consumer pharma prescription this injectable have meant, you with When -- you

when when take together the year, margins, the line, bottom call put judge how pharma's we past everything? its will So on demand everything effect into we account over

Stephan Tanda

haven't mean, But going of total, contribution. side positive similar in on really, compared was the right? side the yield own the a to the that getting I again, gone RX the math. a We we level. divisions to would it's right? I positive and of It's getting injectable of THC care, material through on my personal tough, smaller kind are I those are to business. discussing -- active We're business. I'm just what

how gone lower allergy we math But and care for on that's is incidence visits granularity you into reason that's primary and products, and doctor decon, business. right? related COVID destocking, about visits of and a asthma the haven't for of responsible on all. flu, and and level right, negative the nasal pharma the the really on that negative depends categorize how the if less If colds that So

Bob Kuhn

the far the highest and but lowest in with profitability. I industry, packaging if the followed healthcare. in line the terms mean, Then out, zoom the of by is comes back lineup, unit margin this consumer just overall, the reminder, by as you a prescription is injectable in

moves, certainly, top line can So in you able top that you line the of we've the quarter. the impact. think if the to profitability, part so this I certainly, that line bottom absorb mind, But approximate as the makes been have

Salvator Tiano

That's perfect. helpful. very Okay,

Operator

you. questions to Thank will at now are back this I further There time. in the Mr. no call Tanda. queue the over turn

Stephan Tanda

Very thank two the you today. call Thank joining would half. very optimistic to for this concludes will the year. story This And everyone be half about like of second I year Certainly us. the much. our of

Operator

today's conference Thank call. you. concludes This

You have day. may and good disconnect now a

AptarGroup (ATR) 30 Apr 212021 Q1 Earnings call transcript