Earnings call transcript Q1 2023

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

Operator

Ladies and gentlemen, thank you for standing by. Welcome to Aptar's 2023 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 Ms. President Relations Vice Communications. Senior Skafidas, of and Investor Mary Please go ahead.

Mary Skafidas

everyone, Hello being and with you. us for thanks Thank today.

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

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

also replay of on site this post a will call We our

what Please includes could to results cause statements. our we discussing filings refer from today. are call Today's forward-looking to SEC actual differ to some review that materially factors

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

Stephan Tanda

Thank begin Mary, everyone. results give on an appreciate by quarter. you, CFO, Later good and We our our provide key on call initiatives. update our Kuhn, quarter. will you morning, the the I on additional in will today. joining Bob on progress the for highlighting my also us the first I call, will remarks details

for per adjusted per I Aptar and on first share solutions. $X.XX of achieved Starting of our to and be We our Beauty range guided for sales dispensing $X.XX per Pharma pleased that $X.XX delivered growth in core share. the three, quarter of X%, to strong demand first share to the EPS report to the for earnings slide quarter, due adjusted am

Originally, to $X.XX anticipated adjusted rollout closer expansion system. program, planning that costs of resource be impact and the would $X.XX. the includes Our we EPS in a ERP or the startup costs from our injectables new enterprise

this in one as approved demand. the ramps for is nasal where inventory over of emergency for and cold, or eye demand with and for up. over-the-counter and significant previously has allergic the FDA market every care, OTC segment as experienced distribution usage, Narcan segment buildup medicines. moderate channel proprietary well area benefited including brisk Narcan The growth therapies. channel anticipate new the this indicated. devices This medicines Pharma rinses, that every as Pharma is Anticipation we our we approval decongestion, should our as rhinitis, saline was March OTC depression across emergency XX, Our line dispensing in end-use category, for On region in cough there Demand time.

core at segment, growth range. in long-term to remain expect X% our Pharma for we target to our XX% looking When the sales over

injectables, startup and new ERP was implementation a For anticipated of we took the went the The system. of process fully from longer manual impact costs rollout a the as system $X.XX. integrated than to

have usual returning issues, revenue production and We the out year. the and continue of as gap the the and up ironed to implementation up to implementation ramp business on catching anticipate end by the We QX. most close by the of will in displaced

treat medications coming a delivery medications for also used diabetes. are with drugs. used drug or X combat peptide These obesity the is elastomeric medications is drugs help components indications new used including glucagon-like in remain class approvals to driven growing device can additional launches Market components where GLP-X strong, of expected demand Growth injectable X by and the in type that periods. rapidly these with

space this use today. three been on Our components drugs in have selected for blockbuster

In also care our and our the driving quarter. in volume positive delivered in with the dispensing fragrance, solid of especially cosmetics, fragrance, Beauty prestige team color sun mass growth results segment, solutions,

to receive continuing We pipeline. our new are on good product from Beauty customers feedback our

year. Barron's named has bell a a was at Aptar ESG, Engagement New well. disclosure, XXXX changed continue the for four, for Last Stock the fifth chain. Supplier slide public for number and Leaderboard named for the based again third as also to its climate awards X% among the and as the XXXX. value XX number We Most as were CDP is closing the York company also XXX milestone. ESG throughout XXth anniversary Moving consecutive top on cited week, CDP we quarter, on of again, reduction consecutive one during Sustainable Recognition contribution major for the Companies our a supplier its Exchange. celebrated emissions ranking rang for commemorated assessed efforts to year, and engagement we the been our Aptar to of received,

believe in Beauty, is addition and fragrance and pump we well that Increasingly, differentiated with a are as will as developing technologies recyclable our the in This helping sustainable safeguard innovative launching, environment, as advantage. companies, our the sustainable Pharma to in have and we competitive pumps focus pump-free self-actuation. also such apparent

continue new our we I Now, key to of to identifying would our on some Across on increase efficiencies. you priorities. avenues like Aptar, work update to operational

is objective to increasing effort on growth, both of long-term combined driving achieve to through which primary productivity, margin our cost expect also line a better our and targets, leveraging in fixed deliver top but Our in base, SG&A. operations we

segment have in time, labor to As Beauty we and bargaining discussions representatives in engaged competitiveness. increase to discussed order adjustments last our our with to discuss pan-European national

you discussions update concluded. these We will once are

strengthen is margins done as few released A recast bottom improvements by line increasing realignment achieve segments. position our enable the capital long-term well and our The recognize for as was ago, Closures commercial segment We in for Beauty work segments. our and to of profit Closures both financials goal to we weeks streamlining that efficiencies. to both be and there operations Beauty,

to process of making anticipate asset the improve reviewing our We changes footprint, and utilization. in are

an on On slide I capital update five, allocation. want to give

approximately and proprietary to XXXX, meet of share be million additional expansions devices quarter the demand. XXXX, to range shareholders were and customer our in expenditures approximately of to expenditures dispensing to In our will million had $XXX segment, For capital Pharma growing France, to expect of pharma our through $XX the returned first our including million. these expenditures in be quarter dividends million in the $XX repurchases. We The due in U.S., making of we majority production China. the increase rapidly to investments we we for $XXX accelerated now capital capacity

want innovation and to about Before details QX, call highlight I turn to I and technologies speak on slide recent shown over launches, as Bob the on product to share six. further

device the Turning on would to proprietary in our I that to of to Narcan elastomeric spray FDA business, GLP-X delivery has U.S. like approved highlight been I has China treatment-resistant approval of use that our in for and injectable ramp-up previously, mentioned treatment a for Spravato, nasal medications our is the components also Pharma device, new addition the & received our the migraine bidose that Johnson's Johnson solution featuring proprietary in depression.

are growing featured proprietary Our in medications, notable spray allergy America pumps new Latin a number of with on and Europe. launches nasal

solutions Brazil, In in the Santen and contributing several featured contributed quarter, Beauty's brands Europe, to more. pumps in to perfume for Our Beauty by growth are proprietary prestige in Hilfiger, Guerlain, Ocutears growth and Europe, Viofta our is EMS. segment, launches like and in Gucci, Boss, on squeeze launches including our ophthalmic the Hydro+ dispenser for fragrance Tommy in our by

is America, the China. in product precise foundation North Revlon being a Star is Our new dispensing, solution dispensing for skincare which Illuminance Drop, pump and provides in the used for

fully to Finally, product, new Xeracalm, be on including pump our featured Avene's products, new dermaceutical in continues mono-material recyclable Europe. skin care

brands. leading personal flow our North for with inverted Closures we soap closures the another a are self-sealing launch market, care dispensing control the for business, the is by Turning America valve dish CPG top our of providing a inverted brand solution custom two closure In Unilever disc company. to

would to Bob. turn over Bob? the Now, like to I call

Bob Kuhn

to the Starting on everyone. morning, slide summarize seven, good would and I Stephan, quarter. you, Thank like

sales neutralize and core due reported strong X% Our Pharma Beauty our demand acquisitions, When sales X%. increased primarily our we currencies and to grew for for solutions.

also to startup due used prior-year for expansion EBITDA This core our negatively of of represents did $X.XX. $XXX implementation first first was of slide despite we COVID-XX injectables Lower quarter per of active adjusted As adjusted a to an EPS. in repeat. decrease system a reported shown over strong resource test increase the from EBITDA kits share earnings comparison quarter impacted due eight, growth adjusted achieved to difficult division. enterprise X% on which planning adjusted capacity sales our the not sales for delivered year's We costs and the a prior million, at-home prior-year which substantial quarter. film We X% was

details volumes, the for prescription for proprietary our sales where were increased divisions dispensing some segment's sales consumer X% and our continued and of devices, to Pharma the board. the segment especially up across Turning X%. Approximately, healthcare our growth increased from by other quarter, core came

primarily sales at cold, in segment to strengthened and device. Looking XX%, nasal Consumer for increased the care, saline eye rinses. due pharma cough demand depression allergic and prescription rhinitis, asthma, increased healthcare sales core demand decongestions, XX% by emergency for sales market, medicine on strong and core and therapies,

ERP system the days for bottleneck quarter. primarily decreased for market is migration, the biologic as and injectables the transitory division sales to injectables remain asthma shipping our our strong. of ERP solutions due impact The the Core applications for system with a shipping for leaving fewer demand implementation XX%

material active solutions, science our XX%. core decreased to sales Turning

prior Activ-Film to reminder, As this a the not did year comparison was quarter a against sales of repeat. that difficult

Pharma's quarter, $X second normalize and a impact and the margin operations startup we the implementation million which expect startup of In capacity the the from system XX%, adjusted capacity expansion. factory million cost EBITDA expansion for ERP was division $XX injectables approximately included post million. $X to implementation as ERP

to year. for quarter costs remainder $X We the to million expect moderate the $X per million about these of to

had midsized solutions Regionally, and sun Our solid in Beauty and care Europe and In care dispensing color increased pricing less fragrance, seeing had growth growth. green recovery of inventory. a multi-component cosmetic volume volume shoots our of America for small Latin growth. from customers who and due are to mix solutions. sales X% we our saw America, up built segment's core prestige We our North personal demand to mass

have infections. resurgence to the sales COVID-XX its been negatively China, and due In reopening affected of

throughout is the Chinese quarter see coming back. we that to started However, consumer signs the

Beauty flat and XX% care decreased categories. sales end-use both demand market, core by sales cosmetic sales segment with mass prestige color by increased were Beauty higher and in several fragrance in the at Looking solutions. core driven Personal

segment's due sales continued Homecare decreased prior primarily primarily to of XX% sales and sun surface X% lower to The sales prices the inventory margin for quarter through Homecare the and core care lower Personal quarter continued dispensing EBITDA to as was work to their resin increase. XX%. Latin in America North compared This care levels pass-through in in year's as as America. disinfectant with However, solutions well volumes lower Closure air the the categories. care customers and decreased core adjusted segment's due

to of dispensing was gradual And the of first through end recovery continued the last quarter. to signs show improve the order year. book first the at Food

core the by slight at higher increases food X% market, food decreased sales for core Beverage sales sauces while and condiments increase lower driven increase. sales service for segment and Closure bottled to to and X% drinks. sports Looking water products juices primarily continued due by sales tooling in demand lower and

core for care sales care Personal the Europe due X% care decreased Homecare, and increase. in sales is our includes sales was largest market. categories. the sales drove category it which increased. laundry margin decreased and sales and fourth core adjusted our demand Healthcare, hair decreased solutions XX% And dish care while care segment XX%. EBITDA body primarily beverage Beauty, to The In

million, operations the in flow in to XXXX, from QX cash was QX In million $XX due capital management. XXXX up improvements from working $XX

site quarter. three injectables projects, our our project, large million capacity service in $XX and in France, site our about we new in capital For spent of the our beauty that will all three segments, expansion our China state-of-the-art

of $XX have will mentioned, and approximately capital in roughly was of million amortization projects expense or the three online large first-half quarter-over-quarter depreciation XXXX. we flat Reported X% of at As our sales. two come

value have the range to to momentum of investments to any slide The in to cost, to earnings in a outlook XX% and $X.XX and we from continue implementation. quarter changes $X.XX summarizes the second the anticipate our $X.XX injectables in rate be per Moving for In is about for range adjusted expenses, the share. expect quarter, we of startup to strong quarter, will ERP program cost XX%. per second impact excluding second and $X.XX expansion restructuring quarter the acquisition a fair tax which second estimated nine, equity unrealized share our

for quarter these taper off $X.XX year. per We about to the expect remainder to of the costs to $X.XX

prior Additionally, compared we currency are to some year. the expecting tailwinds

euro rate euro of year X.XX the assuming the for example, coming and rate. quarter our guidance For for second quarter was prior the X.XX second is

for have per roughly for X said move roughly to share in that full-year. rate equates euro point every We $X.XX that the the

amortization currency for So, $X.XX compared coming currently approximately to the benefit to be at $XXX We looking and quarter, to year. million. depreciation earnings on the $XXX million prior are XXXX we estimate for between

proprietary including As expect the million be capacity investment XXXX Stephan mentioned, pharma million capital government devices. in our we any net for expansion our dispensing grants expenditures between $XXX of to $XXX to

continue invest dividends In return with us to sheet to closing, allows in a opportunities, and value in which have we pursue ratio continue strong repurchases. strategic the shareholders and continue business, X.X leverage to the of balance a to of form to

payment quarter, addition in we to totaled XXX,XXX for In shares repurchased million the to our cash which million. approximately dividend approximately shareholders, $XX $XX

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

Stephan Tanda

Bob. In create future for as last XXXX, Thanks, for environment operating value and emerged the well long-term continued, looking from the positioned energized few ahead all stakeholders. our years, the closing, we challenging to Aptar is for of

Our and recent and with capture realignment is strong and Closure us of helping our new into differentiated opportunities markets of technologies corners to our existing intellectual Beauty presents segments already new break markets property.

especially for is our distinctive which of in market. highly operates business, Phrama proprietary The regulated our true advantage product

our to the delivery we medicines migraines. for as strong to remains conversion such and devices technologies epinephrine as pharma drugs proprietary for nasal pipeline continue of Our support

we furthering efficiencies our Additionally, to operation come capital this by investments assets. key streamline year online several increase leveraging common will effort and see

leverage our the to progress SG&A our in a sharing We forward sales quarters. base and drive key coming XXXX on cost to look and a fixed Our percentage beyond. remains in as our reduce focus of

up open I to made we I the today. on touch Before call want announcement for questions, now earlier the

George for been has as Matthews Candace Chair the of Directors, Aptar's Director, years. of to Our the Fotiades last be Independent our peers succeeding by elected Chair Board Independent served has X who her next

fortunate wisdom, demeanor, George's of from are understanding very business. his financial expertise, to unflappable Aptar's We extensive benefited CEO his experience, his and have

will overall George's as the of and will creation our to we remain counsel our to to am Board. I greatly success contributed has happy value. that shareholder which continue of benefit note on All from he

deep Amway, amongst contributor Candace even Board has Since very her our Chair and ago, with joining of experience, at Bausch L'Oréal, Independent an to our become to much extensive sound end-use knowledge Novartis, leadership forward the leveraging invaluable and Candace global roles Coca-Cola held her Board in years leadership. look others. experience judgment, I with her working as Candace role & Lomb, two inclusive closer new her markets. markets, deep of across operating our each and

open would the your call that, up With I like for questions. to

Operator

Panjabi today first from go Instructions] [Operator Please you. line comes question Thank the Baird. Our ahead. from Ghansham of

Your line is now open.

Matthew Krueger

questions. the start off CapEx morning, everyone. good for filling Ghansham. I to answer This I wanted in Matt guess Hi, is lot time Krueger just the taking front. for Thanks to our a on

has So, been elevated since CapEx XXXX.

the the Just into seen that return operating timeline horizon? wanted see what's can we that to time spending this elevated over expect investment expected on to really tangible translate income, we've this what's the and threshold

Stephan Tanda

Good morning, Matt.

So, major not see to roughly, you coming one but same. say line, And, online are about they things online they know, we come have successively. the after year could as bottom projects you drop all start three the will into you

in already next and China come contributing year, course, best-in-class towards online of then, second-half the to I progressively the year. think will quarter, contribute leading custom start the start in end will of you the the see second then injectables and Oyonnax, the plant site in beauty and

down year from Now as know, this we've capital prior taken year. you expenditure

given very the But be and brisk dispending the book, above now. given now to capacity will of thought well order that higher proprietary Usually, economics those demand proprietary are extremely some on devices than our capacity our strong it returns probably our new in XX%, devices. prudent of the we accelerate the increases

Bob Kuhn

a the just capital can and Yes, on maybe return. mention I little bit

it's into consolidating efficient pin we the disclose that business in units custom we're think that be much and or said the is past to manner. us to workshops, solutions, difficult five dispensing return on than different for a return but Custom while strategic what that to going beauty, more is facility, exactly it savings involved, specifically obviously I beauty So, et don't leads projects, we've rather, cost one new other for the project-by-project, cetera. it to a French additional investment, essentially in leads

then, we're today, Pharma on really that there's referring you now one it business. horizon A we're putting in expect China the large that the there. of in one is that Stephan on different supply the see part for the can is operating we roof. injectables, that big that the under similar factories margins was business to all growth to that And multiple facility and obviously, injectable-like under

Matthew Krueger

that that's as entering maybe stocking channel? retail highlighted great the it, And market potential general given one sort Got period? expect significant just the from of any just you've benefit then a expect That's context. products about you really specifically past, from more to really you helpful. you've Would see can you similar very product seen then in talk about financial that Narcan Thanks. a frequently follow-up, or impact helpful. or see that two impact quarters line or you or OTC any would this any Aptar be a to is And opportunity, talk that any could to

Stephan Tanda

earlier mentioned the sales some I X remarks, filling in contribute both for channels. anticipate many will quarter that general, that do Narcan pipeline a and clearly as growth the nontraditional lumpy of because normalize. And then business In over-the-counter. quarter Narcan distribution Yes, in of X, going we my for is to

mind make business. about to all up is our XX% Narcan it prescription keep of also a others, maybe contributor emergency medicines, but So, growth, but in including unit's

might the Pharma context So, be while build, lumpy, relatively of it is still inventory nicely it is growing is overall and the some business it and there in small.

Matthew Krueger

That's thank for it you me, Got much. that's great. very it,

Operator

of of Please comes next The George Bank today line go question ahead. from the Thank you. Staphos America. from

now is line open. Your

George Staphos

second the you can from to you're Hope the market injectables comment. on Bob, questions, standpoint Stephan, development Two the detail. thanks then for and Good on or doing Mary, morning. a operations extent all and one well, more

why you year trying what the you just we're do to maximize extent of that to implement takes this, for Relatedly, a relay steps the to you're are along the and the efficiency, Stephan and just We're how bit management also talked through system from end analysts, terms you or do can outside, have that What have? Bob, the standpoint margin to mile the both on So, capital. timeline you can from ERP operations, a in fully of implement? about relay markers? the you to seeing

some you second terms talk then a recognizing (ph), for difficult Can [live the just mic] question, in could allowing that you you seeing might the newer again footprint? development you're in do product us of are to what injectables of end elastomeric bit, that the expansion getting in that on products mean and it's into. And your of with terms new you're remind markets

call, You details you you, couple guys. couple mentioned a if there? can in provide the earlier a Thank

Stephan Tanda

Sure.

Let's tag I'll team capital. on and on ERP, back come then Bob,

of So, version just let this, SAP to do version system. In processes manual built never And companies few put been has this the are everything. most the with plan deal. the usually And it's me is site on that's out, say basically a instance an the upgrade it's big in a at not a time project, we this to one in everything of Aptar frankly, when you new business a global a who that system. from context, single fully to a an you SAP but taking we integrated integrated and, a environment, for the plan case, from previous pharma

business bringing making -- of from in century view. is ERP an getting this and XXst huge this leap So, this the really point

being we implementation, quarter of starting basically, all so and in to number systems ironed out. project had for the Now, days that then a down the plant up question, being processes and the X, your

fewer with So, to invoice significantly fewer days that led that sales.

the end implementation. are ERP now we So, other of the much on very

our highlight, to it about higher is Just XX% than was in April one invoiced in revenue March. give you

we obviously recover up it's a first year getting back steady our have ready the have But pick we from to business, customers this until the that we the normal, lost ongoing lost not and So, moment we up revenue quarter, the we're keep to state. to go. revenue through the supplying stuff are because will

a inefficiency far some really range will Bob is is the catch-up quarter as implementation still that. the of be most Yes, that's that is as ERP about. X, there in But So, that what behind for concerned, gave all us. you

the Bob, we'll then back add, to Maybe come capital? you

Bob Kuhn

from mean more said, I so way it as Yes, the it everything no, had injectables the I operating different being we in stages of should is summarized an Stephan make the you that think business, mean, there I obviously, pharma abundance our caution And normal business to processes, Pharma that production. was Stephan. were be. legacy well, it's sure more

that concerns April. right pointed direction, the quarter, we had there's there bit was terms little but what trend in So, just than is going anticipated Stephan a in of it's no it more going as out the forward, into the

and new is So, to more $X.XX with the QX, remainder it the to increase to in ERP. tied of the at in tied year is than is capacity all technology the more the $X.XX QX

Stephan Tanda

we question are will course, also Yes. This let's expansion, negotiations, Beauty in once for on discuss and Then footprint of ongoing. smoke bifurcate your have I to to to Closures, will. examine these labor are and as optimization mentioned subject And on those often white we this. also we once especially continue opportunities, earlier. is, you. inform And footprint, additional we ready our we to Clearly, see

the and that's a yes, of that expansion highlighted we very that terms product, expansion, kind of the on in biologics products. good premium the from kind our of the GLP-X Now, benefit because example of the

fatty multiple go the is disease. CMOs of course, this are drugs liver supply are know processes a multiple elastomeric growing three on category, market for or and rapidly involved drugs You non-alcoholic in trials and approval steatohepatitis or whether each the and into auto-injector, it's components additional are indications, obesity non-alcoholic to clinical multiple that and,

strong of smaller But That's the example. the the is just also weaker, people. see to we this very molecules good and of a hand, platform, on So, some did China also going since we business especially Clearly, do it's booster. to vaccine some of as grow. much a one other rollout lot a continue growth see for not

and well-positioned capacity projects of the overall, building that take the to we take the yes, front in we us. advantage pipeline projects in the that. are of feel have And that So, to advantage

George Staphos

Good you guys. all the thoughts. in luck the Thank for quarter,

Stephan Tanda

George. Thanks,

Operator

Thank you. ahead. The the Morgan Angel of question Please comes from go next Stanley. line today from Castillo

now is line open. Your

Stefan Diaz

morning. if provide Stefan was just America? in for details I in could specifically what good wondering know taking seeing work I Closures actually This some you across sitting still Angel. you the is chain. some destocking Thanks the question. North Hello, in on out Diaz for you're called maybe to through, my supply

Stephan Tanda

Sure.

is in into Beverages you care. indeed it and have So, to North more normalize. still personal see supply up know, beverages, home side of whiplashes side mode, Europe, the into in be is personal the of still and more than the strong, second-half. a mind the we much and Closures also boggles we is the I as things, into it expect multiple in very and care to chains it topic. destocking condiment And, U.S. care to care the America side starting We food honest, supply the home that's normalize it And in and down. impacted been a how previously, and then but by food said

So, this, they this we can't should and it. mean quote what know inexact to customer But I who still see. one an is reconcile that's all science,

Stefan Diaz

or will EPS and coming to the called tailwind. a volume Is of a tax Great, be be maybe and bridge? be just provide color. And price, you year-over-year from rate able what to out are I another thanks the you that FX for would slight know you expecting? the rest then tailwind,

Bob Kuhn

the outlook Are or are the you QX? referring referring you to to

Stefan Diaz

referring I'm just the to outlook.

$X.XX, For of puts guiding and and some example, are $X.XX now you're guys year, takes the last to there? you did $X.XX. to What

Bob Kuhn

Sure.

in start (ph) to about quarter some about this typically way with QX [subs] $X.XX mean this, the comp investing, $X And the So, to $XX $X.XX $X.XX I million that'll talked for first moving $X was would negative stock be that more be ERP QX. We in million. to we do easiest to year. have due million QX, the in Stefan, higher expense

looks you both closer Beauty. add the consumer And order take $X.XX, said, getting does you're in those prescription range. as you it well as the that and in book if So, two, healthcare as the we've to good

So, range QX. we feel that for an achievable that's

Stephan Tanda

if the dangerous neutral, will Quarter still tailwind. second-half. in X. in FX, into an at be to maybe I might a From a little X a we it had stay here, course, quarter if And, tread waters this flip headwind we of tailwind FX

Stefan Diaz

thanks guys. for the Great, color,

Operator

Thank Rizzo Jefferies. go comes the line question from next today ahead. Please you. of The Daniel from

Your line is open. now

Daniel Rizzo

Good we've morning. we the Thank startups, margin Pharma seeing forward going for taking year, if you was think injectable some If this my past but or there's is wondering something occur the where, that's things point just would with question. know I to with there you margins, inflection I margins, I next going been products over costs launching, about an the or should see say, is couple if new years the you're rebounding within squeeze segment?

Stephan Tanda

this proprietary and are is the our all mix-dependent. devices and across materials of general, And then profitable. comes Rx most injectables. Yes, mean, Remember, CHC in course I active

course, ERP by a that in like if, grow been devices has proprietary X we So, that's eaten injectables. up in right positive rapidly of the have the now, effect, quarter

our last course, The contributing, digital basis health, be is, starts improve that for $X.XX and to drag mix-dependent. by all year should puzzle become And EBITDA of this stand of the which on is $X.XX piece we the about it certainly so, And range. of an year. to EPS a as

Daniel Rizzo

least And the Narcan, you of thank at you a and pipeline filling short-term kind means is that in terms sales, second the for boost. Can provide then quarter? first that Okay, you. mentioned of providing the

Stephan Tanda

we medicines, a part is Bob but XX% big said, of is part Well, was we that Narcan of don't Rx. much said information. give everything is break Narcan that, Rx growing and yes, which I not but you XX%-plus, don't -- and think But before, as it, about I overall, of clearly [indiscernible]

Daniel Rizzo

Okay, very thank much. you

Operator

comes Bank. the Deutsche go Please Kyle question next ahead. line Thank from today White you. from The of

line now open. Your is

Kyle White

good for taking morning. Thanks Hey, the question.

savings realignment, side? long-term or commercial you On see for you just your segment. on early And we that this learnings any segment previously, the think how then action, the now that should opportunities kind have have, about, side cost on whether or you targets the curious, the of completed

So, about for Beauty growth Closures? margin EBITDA core we how the target sales should think and the the new or segment, maybe

Stephan Tanda

start Closures our don't planning Beauty through expect We do the We with the that. may September. target go change want full maybe I to Yes, the we for Capital Markets do Day, target cycle when in that. We have company. of ranges five-year aggregate and long-term we before a fine-tune ranges to

more the externally on and has new the on reaction getting a On your part internally. first question, maybe closures been organization, positive, both really Customers keener now bit that business. that they're attention of of like getting it's part feel

earlier, we have on thoughts mentioned I footprint some optimization As already.

have deal Middle very we in the may in capacity some will Europe. a free seen You made small up that East

just need And the Closure, looking the be both benefiting, line over to from get is further that, of what and promising, we as to optimization also bottom expected, top the business it's line. four corners So, they focusing on Beauty is done.

Kyle White

the what's Got second resin for And some are forward? it see Did relates then you in Beauty pass-through anticipating in any to just it. headwinds And as of the side. lag guys anything quarter? on And in headwinds the peers your to outlook quarter the broadly, related resin going out maybe you your resin? called

Bob Kuhn

Sure.

So, I that. can take

more to had the we start inside of impacting of Beauty In past, and portion, Home. right? now the Closures with, resin business, is So, Closures obviously, the a

resin enclosures in are significant one material of the that But of to multi-component lower the it the not pass-throughs some as through of systems. but Beauty, X% about X% enough speak materials, it is pass resin, prices. our yes, probably impact or the does core of to a raw complex more on was sales have we there decline due within Now, not

Now, our beauty than and have pass our on business in beverage home shorter terms we business. we typically through legacy much did food and closures

the to as in have, a But hit we're top significant shorten So, to for more cycle. anticipate percentages we EBITDA looking try those did impact margin expansion bring have sales. didn't EBITDA the on of it line, on line gross that and us but dollars, a net-net, effect it would

at still we And much forward, are obviously, resin year rates. higher going decline And expecting year-on-year. last was to

of lower remainder lapse of maybe the we're So, resin QX we until the get some the QX rates for year to anticipating rates. than lower we

Kyle White

you. over. I'll Thank it. turn it Got

Operator

The Thank from Please of Gabe Fargo Wells from next line today comes you. [Operator ahead. the Instructions] Securities. question go Hajde

open. now is line Your

Gabe Hajde

morning, incremental it's of million, of I'm footprint, would I the return. Good a not that the with Maybe that I a given quicker that's existing yield assuming Bob, associated maybe more question. guess Mary. wanted that that's I things sort little products, within bit CapEx characterization. fair the going a guess legacy revisit $XX are and Stephan, to equipment

Stephan Tanda

types these systems. mean, don't I fair capacity capacity they They a to related think of proprietary Gabe. at look that's you dispensing No, happen our related. investments, characterization, are These right. are I when overnight, increases

potentially at capacity at we So, looking cetera, et with time that it's in we to constraints pipeline find would We capacity we right cetera, if they what increase product and we're so et year later now. plan, those capacity five-year don't, have. the But triangulate on we We're down road. lines, the until looking our a ourselves situation on the of have we contribute Horizon. feel won't some of constrained or from

Bob Kuhn

existing go anything construction or facilities, plants new no right. absolutely you're of They like that. into But

Gabe Hajde

Okay. all or And risks then a maybe rattle off not why the good analyst. I'm I'll reasons

headwind being ERP years, of bridging the if we're seasonality the not just I'll of and So, three easy sort resegmentation you no were about, sort to you then there's the sounds into historical really to half? ramping we to like standpoint sort with second of in one kind things deviate cause even or past of from like would anything about implementation of trends quarter. second-half look a going seasonality projects the from to back it think the that that, that the kind ERP at and up, accustomed else $X.XX there talked to call implementation, in should over what Is $X.XX, this we resin

Stephan Tanda

say QX would historically typically little I but it. and No, always been to bit a and stronger QX, there's exceptions have QX some than QX

I but QX, in I closures think business from and and continuing strength material business on of forward. the beauty having right pharma that's maybe the to QX we in the the what strength the But really on it we're business QX. some business. QX, big a as is is relates seeing is beverage driver closures see The momentum Clearly, for the effect think the and the what of don't now. going continuing a effect coming

Gabe Hajde

you. thank Okay,

Operator

the William Matt next go comes of The question from line Larew ahead, from you. Please today Blair. Thank Matt.

is open. now line Your

Matt Larew

morning. Good hi. Yes,

three per GLP-X on of typical sort the the you be to opportunity elastomer On sort will just products of Could like of what opportunity, the Is participating? participation looks it the in products. referenced how you're unit of you and that maybe share that each same a relative the market opportunity? with

Stephan Tanda

Okay.

out, asked of you correct? that but think is I cutting about were you So, GLP-X, kind

Matt Larew

of just understand That each is, how the it's in same? wanted yes. participating products, the three if you're to I

Stephan Tanda

some two of to the these needle when injectors, Yes, CMOS an a They Eli shield. that. mechanism major injection They a competitive are the Nordisk and at with have the plunger. a principles have Lilly. you plastic parts just not multiple disclose with Nova and reasons, going same. cap They auto we're all But supply for look each have players,

and each are those be we anticipate future. participate, participating multiple will opportunities that the there ones participate blockbusters and the in launched to So, in in three also of

So, us. is opportunity margin good area for overall, a this and a interesting very

Matt Larew

additional Okay. script we anticipating going? indications, future lumpiness with growth, prior the ramp approvals ramping these just should or And you opportunity end line in as about think states market potential maybe the and are we think as about sort of essentially any or

Stephan Tanda

provide certainly We I assumption. anything good think that's wouldn't a else. No,

Matt Larew

thank All right, you.

Operator

Thank to like questions There Tanda waiting, over Mr. the are I'd back so to for pass closing no any additional you. remarks. conference

Stephan Tanda

proprietary quarter across a and a our moment brisk zoom look like at to I questions very take to we very interest. of If out. clearly just strong demand have I that's we devices Great. CHC and dispensing RX reflective appreciate in one, would of everybody's the the continued continuous nose the behind very an two that, both categories. for the growth routine about mean, part as grooming are I bullish those book. for of order we emergency personal of integral medications, driver expansion the is allergies, of discovery and really need

in The course we quarter for beyond. Latin of And were course with vesting. and China, had for decline will beauty good in improving. we topics in China two that substantive had had trepidation the in injectables of abate the and some We Europe transitory and U.S. additional growth materials, both cost America, and active

in devices from injectables So, as will and QX, continue we year-over-year order to from we expect very pharma look we start pulling will normalize basis. strongly, again. pull active a at Beauty the in material more see and that on America, normal proprietary North will book, China keep pulling what

the and and or investments to headwinds be as over then will cost of starting out the of come online normalize, contribute. away course, are quarter normal, for Closures look foreign exchange second-half, more may going And corporate two. awash we the some

are focused on growth executing plans. our We

start rate Some tailwind. to are, exchange cost flip of actions they contribute where will to will if stays the a that and

feel So, overall, for talk looking Thank energized to and forward to we road. very XXXX. you on you, the

Operator

call. concludes This all conference for today's Thank your you participation.

disconnect You lines. may your now

AptarGroup (ATR) 28 Apr 232023 Q1 Earnings call transcript