ATR - Earnings call transcript Q4 2024

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to Aptar's 2024 Fourth Quarter and Annual Results Conference Call. At this time all participants are in a listen-only mode. Later, we will conduct a question and answers. Introducing today's conference call is Mrs. President and Vice Senior Skafidas Investor Communications. Relations Mary go ahead. Please

Marry Skafidas

everyone, Good being and with Hello, us for thanks morning. today.

Vice Joining us CFO; and Executive and Tanda, Stephan CFO. President on today's and call Vanessa are President Kanu,

slide accompanying the under page. and release Relations press deck been our Investor posted have website on Our

to During we set release. measure financial and discussed discussing reconciliations are will press certain These call. press financial measures. the GAAP this are directly reconciled yesterday the during the refer of comparable in disseminated call, forth Please the measures measures earnings non-GAAP measures to most be for non-GAAP the release most the GAAP comparable reconciliations to

we website. always, call post this of on As our a will replay

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

Stephan Tanda

and as appreciate our Thank the performance quarter. the details the my good us on will We provide for will well today. highlighting full on remarks Kanu, Later by the morning, additional key as joining our everyone. call drivers results call, you I Vanessa begin in our for CFO, year. quarter you, fourth Mary,

on our in technologies. were central drug core increased Starting X% by due growth the as X exceeded We driven delivered and food for results quarter as pleased quarter. therapeutics end of strong both, our the for the emergency The especially systems, to and revenues operational delivery proprietary well positive share for earnings our system closure and $X.XX. demand sales adjusted per effective Pharma tax of allergic demand a rate. nervous royalty medicines better-than-expected ongoing rhinitis, Aptar lower-than-anticipated that top Slide to report range and I'm of for achieved fourth guidance performance

the productivity In gains entire addition, we benefited company. from across

I EBITDA XX%. will now quarter, margin our the focus range year. top you long-term at on at of quarter full give more Vanessa so on will the was Aptar's the details end adjusted This

range. long-term growth X% Pharma within core achieved its sales segment target raised Our

business an driven royalties. adjusted my achieved of a year approximately the Pharma's XX% products where a our pipeline Pharma long-term of XX%, and to the raised expansion that X% is over core years when reason answer EBITDA target major continued and is future and the our we potential is Often Pharma we of about in sales X grow. increased by sales last continuing the Additionally, pipeline-driven XXXX by asked for clearly pipeline margin higher to to growth see

was medicines, year Pharma this driven and in system rhinitis central performance growth allergic nervous continued emergency therapeutics. by

highly segment, core this the Our around and important anticipate profit proprietary manufacturing, creating the lives the Pharma innovative, franchise. strength continued our We world. our engine and safe that drug business support patients delivery of of is customers and reliable improve for technologies

core for the XXXX offerings large and and service The grown XXXX, almost in ] year of increased probiotics the Active diagnostics, for [ annual sales full demand XX%. we that XX% dose Since solid diabetes were business CSP sales future. a rate oral up due the for XXXX of Science ] solutions. [ growth compound have Injectable For job our acquired Material tremendous to Injectables saw business, and sales a done antithrombotics, small but capacity a growth GLP-X industrializing drugs, boding was in and revenues. growth by team expansion of grew offset vaccines. XX% the in well completing molecules we our project higher-value lower tooling has at

across the end Beauty Care. Beauty good Masstige year, number we growth Care, a including markets, our and at for segment had Looking Home of Personal

however, Technologies to the segment's business. core of regional could EBITDA decline long-term for progressively and recover adjusted Indi the not offset due year. its with challenged large markets beauty. the sales Beauty Overall China the grew remained America within of unfavorable most Beauty saw to However, margin continued the these in growth segment declined, Prestige sales The XXXX growth. maintained unique Care highly growth end in in region leading Personal mix. brands North Europe, our a target remains range. nicely.

had the had end some a India, growth base. XX/XX, better-than-anticipated Friday, albeit the the Black and country with good we equivalent brands. which towards to However, China's from in a green is local saw of year, shoots We low

Looking ahead, segment progressive we across encouraging new for project and activities most the improvement XXXX. anticipate regions, in

helped the consistent and half France. also were focus year, closing markets second second reducing technologies. Focused world dispensing long-term the The value its on a the a to in the top sales. and in positively sales utilization and were for target to beverage by XXXX. segment as food points closures in year. core increased converting demand mix end by improvement its full than midyear dispensing line margins a basis increased higher-value within on segment globally range plant affected for XX% in range, higher The plant long-term by well half steady improved Closure cost part adjusted target margins Closures the the driven loss-making of of the over plant utilization of supported XXX more also as the to segment's by improve and food innovation of returned by reinvigoration a year and EBITDA In protection in our the around improved

X. Slide turning Now to

to shareholders. proud returning capital record are very of We of our long

million the shareholders increasing year returned annually nearly Over consecutive of paying dividends XXnd is mark to we to repurchases. years, our $XXX dividend. X have an and XXXX last expected through share

innovation shared you've the and our Johnson Johnson European the highlight heard we that users. it Agency our delivered talk us not their EURneffy that technologies the a Prodemedication as as and used X, meaning now during Also, approved solid ] is Pharma, In depression. earnings our treatment needle focus treatment-resistant Now the or neffy epinephrine, dose drugs. our in I dose end which now by FDA Slide our call, on to [ approved requiring nasally like be which feature Privado about on alone to customers the Recently, value Medicines and [ for both to bring mono market. treat products examples can the for last quarter ] and would and and additional system and exemplify year FDA &

Healthcare, capacity increase use continue push with a highlighted dosage providing [ to Helion lateral technology for ] for and Consumer Mist. system one previously convenience, our button we of actuation, patented control Nasal In relief ease Otrivin efficient

We also pipeline. continue innovation to grow our Pharma

portfolio As all year, delivery during previously SipNose, assets technology platforms. acquired the proprietary mentioned, [indiscernible] our increasing from of we

with [indiscernible], lungs. dry larger delivering this into to for entered also an we platform opportunities of medication exclusive the see in Healthcare We for Cambridge agreement where inhaler platform, Innovations powder amounts

[ ] inhaler the liquid further will no-propellent strengthen agreement our our leadership regarding Pulmotre's platform addition, in Colibri In respiratory space.

community and Health, to reports app The of of records migraine Digital the share including app Aptar the doctors, over optimizes the app continues migraine X migraine with latest sleep the #X way users. can million In more. release with body users a be

Finally, which solution in in-store risk mitigate our nitrosamine Active impurities. program, Material the is Sciences, an the active of part packaging-based technology, technology FDA's to delivers emergency

enable costly for reformulation technology nitrosamine Our and pharma meet to FDA's companies avoiding deadline can processes. time-consuming the August while with full regulations compliance XXXX

the from highlights Beauty to year. Turning

solution dispensing design for and Idol Our technology lightweight [indiscernible] dispensing actuation more a is Odipafer [ and gentle new of refillable features ]. version [ fragrance Lancome's ] Prestige

] are formulation based, typically more adapted dispense. making also growing oil [ fragrances to for the neurology Alcohol-free pump meet and to difficult the our fragrances. water We demand alcohol-free

consumers ] formulations, with optimal and same compatible featured experience Gala's on highly is missed these is pump the Alcohol-free Fragrance. fragrance Our providing with now gentle [ First

our with is pump pumps line for the ] [indiscernible] using customers and launch locking Also Sun Barena our reformulate presence. overcap pack In a business supported solutions. featuring feature our Avant our post-consumer is [ France, serum beauty no its product, ] dual resin capable blend packaging quarter, performance with fourth patented recycled and SAI made [indiscernible] selected e-commerce our post-consumer supported Prestige the brand recycled full custom where in Chemist major FusionPKG of [ required. pump XXXX, our in Anesthesia [ of components turnkey from beauty on and ], which features [ locking brands, ] [indiscernible] solutions Indi technology Fragrance

we to leakage. feedback a Flow to to expansion allowing innovation. led category Throughout partner a their Turning care packaging consumer hand the year, Control, operation has brand any Dish Closures. to with with major on single continue Easy inverted Positive Squeeze without major for

you're big planning the including U.S. that Aptar feature SimpliSqueeze to weekend, condiments for game commercials the in and watch solutions, see If closure. this valve you our will

line As that we continue consumer to shelves. bring convenience and the grocery cleanness to products store

Grill During Sugars was our custom dispensing for as U.S. ] in the McCormick, Mates top and Holiday [ the quarter, solution featured the flip

powered Finally, ] costume in Nesta introduced products our milk [ new weight Asia, adult closure. lighter featuring

for Companies climate prestigious with our a world XXX Climate recently who transparency Slide turning Forbes Also received confirmation our employer XXXX and opinion of the change that brand, environmental nonprofit during in Top Xth ranked consecutive were for a based the leadership. disclosures. was global to recognition CDP public Women on on and on tackle Now XXXX, by in for out evaluated sustainability we Aptar place corporate and We List efforts categories, companies A the environmental to leadership including XX is year X have secured the X. named

consecutive most XXX of year, we Xth by companies. Responsible Newsweek, named one America's of were out ranked For #XX the Companies

materials. reusable, developing on proud more bar ] are products refillable free energy, feel and through sourcing certifying our program raise incorporate then are We more [ and to renewable recyclable, sustainable sites continuously internal that

like turn call the to would to over I Now Vanessa.

Vanessa Kanu

everyone. you, Stephan, morning, good and Thank

Let me Slide summarizing the quarter. for begin Starting by on X. the highlights

due a drug increased healthy Therefore, the proprietary beverage X%, X%, Closure primarily technologies core and both foreign for for currency in approximately food to sales systems as reported of ahead markets. included continued demand well grew sales as X%. Pharma's which growth delivery Our translation

and Driven The a the share the with recognized from for quarter not adjusted was prior assets, were exchange well the compared of We $X.XX Closure to as due XX% measures segment tax of prior a increase year, adjusted on the of diluted clearly mitigation benefits year fourth stock-based expand These shown XX.X% combined tax of business. XX% increase into as lower $XXX executed of realization margin to Pharma primarily in deferred across by which earnings rate adjusted tax as to million, prior prior in and per achieved XX% tax strong comparable and at EBITDA from the year. the an the of over slates, year, the compared margins compensation. the increased rates. rate translated effective margins, XX% X% cost in impact EBITDA effective

some the segment. Now details of by turning to

down segment's Our as therapeutics. that sales treatment well Consumer season as demand continued medicines dosing by increased Prescription a to Healthcare medicines management system. due dispensing ] system decreased solutions cold technologies increased level. rhinitis, core strong core cough-and-cold nasal sales decongestant, proprietary win for for primarily at market by and and XX%, core saline [ Breaking [ XXXX and Pharma QX could flu obalmic demand product growth and with XXXX, driven XX%, allergic sales due dermal The nasal emergency our and starting X%. for healthy offset nervous inventory delivery sales central drug for decline. not this customer to ] weaker in decreased the

sales used our core Active Material lower in led on Injectable decreased sales positive for in revenue Demand and aided tooling large slightly, core service XX% growth. quarter. diagnostics by diabetes our to healthy Science up contributed the the Solutions, products tooling. increased X% for Injectables results. were sales to GLP-X by due probiotics a sale component also And

improvement the prior including was cost executed. from margin a of point royalties driven year. initiatives the by products and was EBITDA XX.X%, increased and value quarter for services, adjusted XXX Pharma's margin sales efficiency improvement The higher basis

our X% the contributing Beauty sales tooling lower X/X to in quarter decreased sales Moving about segment, of core the decrease. with

care demand [indiscernible]. of XX.X% point mass which regions. applications body due growth market. particularly increased skin Beauty North primarily facial offset margin segment Personal core decreased decline lower care increased sales than X%, higher-value a care by prestige higher-priced top particularly of for adjusted hair XXX hair several prestige the cosmetics more to in sales to continued Care to due at and Care and sales in X%, shortfall, Looking core with This products, care Fragrance, for core applications line Home color demand largely EMEA, was XX%, segment's basis quarter due continued the across products. America. in sales increased primarily for EBITDA

executed benefited settlement may this of year's the item nonrecurring received you this a that insurance segment. efficiencies overshadowed onetime successfully segment prior year claim QX the impact prior The from that recall Additionally, of within impact operational margin. this

Moving Core increased with across on and by compared X% driven by number to of all prior regions. sales the the Closure across increased year, end segment. markets a demand

due in regions, productivity in while over other Closures, Home largest Health sales XX%, to led and representing condiments sauces demand XXX X%, basis increased water bottled care core adjusted for for the market. sales Care field Care, which lower Beverage America, management. XX.X%, across period demand market higher by and driven sales, our by driven across due segment's a Care the Personal by drinks. food core and point EBITDA sales increase and strong X% regions, growth our was for Beauty, year and fueled core primarily all sales [indiscernible] to several care category, sales at This volume increased looking of healthy While improvement North last includes and solutions. food margin by expansion decreased demand same core XX%, cost continued solid increased the sports laundry

majority to million, with $XX CapEx our total Our segment. was for spend the Pharma QX going

the our which to impact on showed core million ]. sales performance includes ] moving $XX Urite Chile and Slides results. XX year of X the decline [ in and [ growth, cover full X% an Now

to the margins basis These line Our due execute measures Offsetting and efficiency noncash were SG&A and as to Pharma compensation sales XXX productivity by in top across efficiency the reductions measures support of cost business. increased R&D, expense. particularly cost growth, investments gross points well mix streams higher cost higher cost revenue expanded margin and as towards benefited in favorable share-based our SG&A. innovation both for

as remained year-on-year. net a As consistent relatively a SG&A result, of percentage sales

our expanded Beauty of basis a Adjusted EBITDA XX.X%. EBITDA including year XXX our to full margins basis, by Indeed, expanded segment. on margins points segments all

a adjusted While per rates. were compared share, ago, $X.XX earnings comparable $X.XX up exchange ] XX% to were which year [ including our

operations in We the invested expenditures million, $XXX year XX. returns XX.X% capital our prior our The Slide the for consecutive large Capital year. million year to $XXX of the from completion return Cash capital, investments. from capital million, a were of ROIC, driven Turning ended earnings year with second XXXX in and $XXX on signifies from projects. by flow was up which reduction increased ago the on our increased our was $XXX down capital expenditures period. in million realization

$XXX majority our from several with flow XXXX allocation up Slide million largely the years last our earnings. to XX in the to was million increased Free over due cash $XXX capital Pharma. going shows for the year,

debt impact come the portion a from to interest our Our strong cash amount we flow any to paying that coming has rates had interest due increase shareholders. of returned us by allowed neutralize rising down expense and of our

of Speaking in XX% in to XXXX. million $XXX of which, in $XXX in XXXX, $X by we combined returned million and million repurchases, up shareholders in share total the form dividends from

prior Finally, of million a a of strong of million, sheet, a the Net $XXX balance cash from leverage $XXX down which XX. debt was reflecting ended year $XXX the with billion and as balance the year we X.XX. of ratio

of expenses, We a any anticipate costs approximately restructuring acquisition compared XX fair to share, equity Now year which prior moving be for includes on first which investments. quarter. headwind a share, adjusted to per unrealized of changes range earnings $X.XX the in per the currency Slide To as outlook. outlook to was the $X.XX effects the first summarizes value reminder, $X.XX in for our quarter and quarter.

the tax prior effective tax the due corporate year headwind an the for range in anticipated French to an compared to is Our part is rate $X.XX which to quarter XX% rate, XX% in quarter. increase

against [ the Brazilian pesos, the includes U.S. and Mexican which than $X.XX due in us Kogan typical with real, point we in currencies, renewed this impact an ] driving quarter larger of prior time, year Euro, amongst quarter. strength and the the many expect are dollars first tax others. the a impacts have to approximately for currency the because compared Currency At to headwind

per sermon which While our highlighted. I X.XX ] that besides for is other in X.XX earnings annualized currency share. impact rule in of just every subject Please we that a some of impacts mind euro, euro, there are currencies keep [ movement to the the on

In operational XXXX XXXX will closing, to looking forward ample the are our opportunities performance we're strong with for that and bring. pleased

that a we leverage sheet provide very I As with balance significant strong ratio a earlier, ended and will mentioned year the optionality.

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

Stephan Tanda

skin Aptar. Thank you, softer fully the certain end for effective to fragrance another that, XXXX compared said to for first as as tax care such well year quarter for demand in be for Having quarter. anticipate saline decongestions. as prestige We and expect the quarter, and higher will prior significant the Vanessa. nasal negatively strong and the Results also dispensing first be in we year effects by currency markets rate impacted technologies

EPS. a in about Vanessa $X.XX on the be As stated, headwind will impact QX

elastomeric are being more is to the we gradual higher-value new seeing healthy as year, and a Additionally, beginning online especially our anticipate the comes but demand for components capacity validated.

Pharma main ahead, proprietary the growth nervous medicines with Looking driver delivery ] [ way. our of systems leading central emergency the be continue will and to therapeutics and system

expect injectables and our products seeing We our year, higher-value to interest solutions. demand continue strong to grow code the are ready-to-fill and premium for for throughout divisions,

made book, we capacity Science as cautiously a project stringent progresses. and XXXX. and has the the regulatory [indiscernible] returned a to products the Beauty Beauty's quality meet business nicely for for Injectables strong and ensure has ramping will growth improve up year solid higher-value We of anticipate our panel requirements. significant order products new our to poised is topline structural pipeline to are has the that The improvements. has continue building

reduced XX%. the reduced Over last by over the plant years its XX X Beauty last has by its has X count and years, workforce

line top ongoing innovation engine, improves. including made an work while management progress efforts. to always done. as bottom fronts, rates more utilization continue several reigniting and cost should changes there's improving and Managing Closures impact ongoing on positively effort to the great These its costs be line is the has

interest to and and tremendous the we currency earnings value. [indiscernible], market Our growth dispensing shareholder and that solid there's customers we are increase When developing. help adjusting for XXXX continue win innovations anticipate technologies in deliver effects will share

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

Operator

Thank you, Mr. Tanda.

We will the [Operator Instructions]. now session. question-and-answer begin

of phone on comes question first George Bank from America. The lines as Staphos with the

George Staphos

Hope morning. X you can My okay. Good everyone. Mary Vanessa, me Hi, welcome. Stephan, questions. hear morning. good

First might shoots generate the are what you in talk that to have that And momentum, little what can impact to you bit XXXX? China? green a about be for able of seeing all,

rates that Thanks taxes will to share in per different second difficult, a and where question. in solid The currency comparison off at the 'XX. do what effects, those Would what tough earnings would a it's held grow that you per you you maybe them, growth. you call, be earnings guys, expect good luck very they're too question, recognizing we the if XXXX expect share If tough to quarter. way define handle -- exclude do how

Stephan Tanda

we Hi, great. George, you hear could

you me China, know, Let renewed first waited to of Look, And handle. still let the our Beauty one, all vitality. general, care. one the largest country the with market for show or the take I'll second a skin market customers additional is on as emphasis math for market particular higher the have Vanessa that in in Beauty

And some gain of share our to larger see and the that. clearly, brands we is multinationals. customers gained have share been struggling versus local What with that continue

XX/XX one But the beginning was U.S.-based You know year large story solid. the pretty generally, pretty The of solid. all was of multinational.

So consumer, we of but course, it's more that. brands. who to the with ultimately, neutral -- are serves local And

over care skin we will very will Fragrance building that in growing, hopeful and but quite business. China China our also year growing. is it's benefit I'm still particularly see the small but So that

think about it. that's I

region, we region. serve reminder, in a As for

the should consumer us at speculation and more again Chinese And is also looking really about for we're bode So for the internationally not where business all I general. the for tariffs Anecdotally, that that what consumer end, Chinese well think this also had. we beauty high traveling in see is the is meaningful.

I'll to Vanessa. And hand over

Vanessa Kanu

headwinds. it's that George, you tax FX called right out and the

just seen driven we the one past. process past about of by being we in that to what haven't We is came talked of ex the headwinds in speak. tax these The [indiscernible] recent as kind the legislation or French headwinds

will that aware reductions. a and growth for normalize tax, XXXX. his EPS Stephan of we you for A have cautiously EBITDA remarks, the you're work Look, lot when double-digit talked around and prepared we up EPS normalize there's cost you Those lot cost optimistic drivers, potential reach in will another reductions to FX of about are XXXX. for in

tax, year. optimistic another have and an that be growth cautiously are will FX for strong we in normalized consistency So we'll EPS

George Staphos

tax is the Vanessa the XQ And Or does it good year? that. effect? of is -- luck sorry you, Thank impact again in a only quarter. whole the for it the

Vanessa Kanu

whole okay. Yes. It It impacts whole No, impacts year. the year. the that's

It reported happened may going you was what really didn't last happening in both was QX asset it's to -- now. It be the French this days. be chambers -- will media. going upper in in recall, George, we to and It the just is lower it a heavily because impact. -- Parliament, So happen so think this of the it the QX, happen thought passed an it's in year we and by coming full

QX guidance. the so And we've into effects our QX built

Operator

Thank next you. with have Panjabi Ghansham Baird. question We now from the

You may proceed.

Ghansham Panjabi

Vanessa, on the on George's up just items. question bridge EPS following

what than on holds if think variance previous a versus The trend bit as should a with So was at about tax? XQ that How lower 'XX? then from same the we year-over-year line EPS? for be current sort And in headwind would corporate, quarters. of currency levels, 'XX quite that

Vanessa Kanu

there So in talk versus XQ, or guidance. of things. year-over-year got couple are We there a we --

in as able loss So we tax my that we out not remarks to assets to prepared did carryforwards deferred benefits our recognize our I tax previously we ongoing recognize been year-over-year, a of planning. tax planning. get called able some some some some tax result of were from had that from

wins seeing QX year-over-year. of sort that in in the So that did result you're

the there's of that, delta from the guidance. Separate

we're QX QX that actually into the year. guidance our was French The our the in seeing guidance. built in did that really built into win had impacts we effect tax was so of guide And of that materialize. now And delta this into come that not

factors QX. [ in it's the We called X impact it $X.XX the combined. ] is out, for what asked You

for. So clear looking might what incremental be impact on you not I'm

Ghansham Panjabi

Yes.

XXXX meant I and So for variances corporate. XXXX tax FX, $X.XX, for baseline XXXX. EPS versus is the

Vanessa Kanu

Yes.

be it guiding know not -- We're that the earnings just income hard at we're given ETR, of we point guiding independence not to especially French mix higher this give a on of pretty on find jurisdiction to versus time, is, guidance in in So impact. what for because I'll significant what's know, for we taxes, the What will ETR XXXX with example, say can be year. expect I happening XXXX. full on the we

We haven't gotten into exactly what the number will be. We'll guide as the quarters progress.

FX significant And the it's I I headwind, with continue the to then rest the the mean, that pretty expect in $X.XX. year. QX for of

you're which perhaps FX continue. improving on or environment depending But see year double-digit Now on progresses. based what as forecast to some this now, expect seeing we watching, the impact around we're we hearing commentary the

Ghansham Panjabi

trend corporate that XQ, the below then for to? was And what Okay. due

Vanessa Kanu

short-term typically which any of have I year-end sort year, is the QX. your you bonuses adjustments of items accruals. end So the true-up you typically there there unusual to get weren't What includes and in will incentive out as call for

you pockets of hit have got those So accruals the where we reversed. targets, didn't our business

That's what driver. QX, seeing corporate than that's that more the probably in you're seeing. you're what -- Primary So line nothing unusual in mainly

Ghansham Panjabi

in that to And I well. region that the as for Prestige, guess, in question, of line and I EMEA it. in And think, normalize? the of in you're time also terms second seeing terms in and you cold the called out sort of then Got flu weakness, just destocking

it standpoint. across seem that Just a the are stable like based the relatively of board reported, volumes some seems customer on level customers from

what specific So on Aptar? going there to is

Stephan Tanda

Yes.

season out. this morning how saw in start take again, on fact, also So first. another we that consumer last We see flu some again sequential And the increases peak will in let's months, depend the bottoming To U.S. we on have Aptar fixed unwinds. might X the

start And I think into quarter again, still but X. comparables in so go tough X sequentially, we quarter to face it up will

out I unit volume Now Beauty slightly. on beauty in the side, that pointed actually up was we

the luxury up launches what really repeat. picked astig not mix So and effect significantly is [ ] high-end the ] fragrances is you're Prestigio [ did seeing

effect. So an -- of mix a that as more effect volume to opposed it's underlying

Operator

The Roberts question next from with Raymond Matt James. comes

Matthew Roberts

firming that that, GLP you biologics digits ramp-up based official could any strong expectations, what any believe ramp-up tend sales number could do that look growth, digits single guide growth injectables either new high stopping that said business better XXXX ability in underlying like there. the But in expecting given and more I gradual coming injectables. in single to in drugs, could in quarter, rates dictate albeit have noted Stephan, core below you based you a what or growth on comfort to or last short expectation? low of on factors be or above those

Stephan Tanda

and ramp Yes. change good. I this looks our thing and want want or equipment terms and down. pieces wouldn't of customers There when The get to in press buildup it. get this up The quarter-to-quarter the validated. good. it now, need It's now always also my they'll you order answer of moment [indiscernible] looks pipeline be -- after there. we will They variant certain done

in good, business. are in about and demand we being the cautious is overall, but that quite the quarter, first exactly So picture match bit bullish that I'm a

Matthew Roberts

And lead will strong helpful. delivery the proprietary on That's segment. systems side, Pharma that category XXXX and performance, Okay. noted the had continued maybe then you

So type gate as [indiscernible] commentary that's as positive And you or of what of the is the look do 'XX, whether of heard achievable on had, we've coming neffy newer drugs some growth secular for you nasal market out delivery Would think you are dependent on underlying further so the into proprietary the already so and trends drugs XQ. XXXX on more more say growth new or there? that in is drugs in that market?

Stephan Tanda

earlier We of fully SPRAVATO ARS [ continued [ growth there. Pharma ], the also the there. ] is core fundamentally, We was [ the feel good Look, humming. Sure, about called out January Matt. at ] CEO in engine and very JNJ were JPMorgan

growth as franchise in drugs as well central emerging underlying continued continuing. the treatments, see system allergic the rhinitis nervous good So we the

As and trough. we're other the we cold but end think wobbly, just discussed, the the a at cough of little is I

Operator

Jefferies. from Daniel a Rizzo have now with We question

Daniel Rizzo

Obviously, time not tariffs. there it's directly, If affect happen. I Well all? I what trends? happened or want to order about products. Or very what's expect at any and necessarily was to last wondering you had the guys don't but you first were on customer it a Chinese I on tariffs But to to your any answer going situation, customer demand fluid thing you also is have ask

Stephan Tanda

Yes. part, in guidance. not it's And for about in our most China. produce The the as for -- Look, the I region region. said, obviously, we

on situations. passed and those are, So on. or it it In pass on we pass cases, have there some of course, special will it

a all commercial negotiation. about. one worry that not the could about, out terribly things But the I course, you Of is it's of tariff worry

Daniel Rizzo

then you solid know, the And I had don't -- couple that in up had forgot. the a was if metric? XX% what for there of goal October, to last you what you maybe this I if that years. is in But and over mentioned ROIC or to, a is goal pretty wondering Okay. something [indiscernible] I

Stephan Tanda

We're calls. Yes. not habit of in targets the changing the on long-term quarterly

you a as CapEx If and would is operational then. of helping we revise it, I Day update have the more do CSP continued discipline we'll into increased we Investor think, September. that in get But and up, clearly, September performance, We and we acquisition we'll an take it look in at coming ROIC, the distant then.

Operator

Blair. Instructions]. we William have now And [Operator with Larew ahead. Matt go Please

Matthew Larew

that's structured of a and or they in mentioning call a nature 'XX, about the to little year last injectable lot contribution something I the the year? in should about and you've then Or Obviously, margin talked bit cough cold moving so, royalties. as wanted driver side in that I the of And the side, in the more and a rather some royalties all of Pharma. You've there on as ask think and or either presume we are beyond? milestones? was about than the anything you in the of quarter improvement sort time how of 'XX forward been

Stephan Tanda

what something our then drug fees, a foremost, a Look, dealing small -- value that on service with the Yes. household royalties the part sales. tens and process our is end those a base, royalties finished but we're be fundamentally of bigger bulk the these sometimes you're payments, are but of might that of get at recognition of millions out development some make sometimes, call during still back the company. we revenue product had But few if there or on decade They be are Sure. small first and for lumpy. companies overall it's and we product the we talking a can indeed longer,

Matthew Larew

I And so was then guess, Injectables. you on last and to the the a that up maybe follow first we Obviously, quarter see comp QX When in down want should did the up just think a down X there? to significantly Okay. in then 'XX, tough slow growing being about year, ramp quarters. was I from and

Stephan Tanda

far from Yes. grow not line, throughout commentary volume too the There that we revenue gave. having guiding we business service We're that, unit report but some in individual the continued things lumpy. year. that to away the like other is said But the by are more Injectables

Operator

Fargo. Wells now Thank Hajde have you. Gabe We with

Gabe Hajde

side of allocation to focus the on capital the I business. wanted

to seems kind of capacity You talked it's know, you Injectables. good still big a investments as couple capital. are a of thing, we And about up XXX, but it wrapping guys XXX per guiding I think in add

gave investments a at segment. also you're showing are a Pharma your directed You your internal lot of slide where

So signal. I that investment can that that internally? just options interpret for in seeing you're all But in, of as what a provide think positive you any color we terms

Vanessa Kanu

that? Sure. And I please add Gabe, why any incremental don't color. take Stephan,

you get and geared the M&A, as call of has has So Gabe, towards allocation but been pretty been healthy organic capital largely a not a know, level call that. share in as as And big XXXX. which, will expected get largely Pharma piece our policy, dividends out CapEx of buybacks. think exclusively, did And you a of continuation so balance XXXX once you Pharma, that. into again see investments of you'll I capital we

not that, we more but M&A From potential I'm again, past. imminent, you've strategic perspective, regularly and And an so. M&A candidates And that geared see strong Pharma, evaluate not towards about fit Stephan potential. talk in we accretion but anything where exclusively the foreshadowing heard

process. So terms the I of continue think will that evaluation in

from Stephan year called our increasing a just dividend remarks ended then prepared XXst dividends. we in And perspective, of as his

is the then refreshed buyback, continue expect that you XXXX. just So component to in more that and Board the program $X.X the also I lastly, October, would buyback share that know billion approved And on discretionary a capital we in the I add of that Stephan? in and our and market expect XXXX. repurchases, allocation. want lever you continue also with have, We're the it's would to that already active Anything to

Stephan Tanda

No, perfect.

Gabe Hajde

And any guys things or call are particular that would want discrete products in capital out? that you that to

Stephan Tanda

Not really.

in discussed, the China one built state-of-the-art the we France this on we As in the called injectables. and facility respectfully and boxes, X

for is creeping and really capacity to but single those locations, investments X gradually and not million envelope. growing think $XXX that million in the I investment largest million us -- we're $X everywhere, on $XXX $XXX Now million

growth So good it's capacity creep of investments maintenance company. organic [indiscernible] investments, a just investments, lot

Gabe Hajde

gears a bit. And I little switching Okay. guess then

guys You active. pretty been have

Beauty. know multiyear I again, -- called misheard closing, if kind of I XX you're you're was in you apologize on out organization. the and of the across But not And I efficiency other end we're facilities initiative what current always a I think just done. not

we to a as trying cost look you forward, or that you do always get better. need do from standpoint else see to footprint But You're reduction? anything

Stephan Tanda

Yes.

clarify, headcount done. to also, by rightly by said, Not but never what site built, we reduced And last X or we the XX. And you plant its XX. its count years, said, we reduced reduced XX%. count as its that over you're Just Beauty

the with and the DNA, year, productivity And to We closely. encouraged nothing to report increasingly moment. have some we're have beyond ideas, imminent I'm coated that brought nothing All tracking very at where the our for really table businesses productivity is that, is X and here. plans. this in But

Operator

session hand Tanda would conclude question-and-answer like I closing the some you. to it to and now for Mr. comments. Thank back

Stephan Tanda

you. Thank Wonderful.

quarter XXXX margin of for our to by earnings solid We very was delivered zooming years share per end on growth me a double-digit year XXXX. out, let as top followed So and and strong a targets. usual, strong both raised on through a X finish very back-to-back year

DNA I and the innovation addition increasingly the in firmly to productivity, coded and company said, well. just of into is Driving as sustainability that alive remains

at to Looking journey. excited continue we 'XX, are the

taken much meeting increased needs and and more customers focus footprint. very upgraded [indiscernible], have on their on with flexibly rapidly competitiveness Our our

foot. front on are the We back

macro, like the Our good we're and especially pipelines our said comparables but done that, to Having are spots look anticipated all continue the grow. to impacts that across tax shape corporate challenging company It against the very year, as we planning always rate. in French operating Healthcare of you these that a in pipelines of Consumer to Fragrance but tax higher we income good the with tough exchange expected for transitory. are discussed project some foreign discussed, a and are more that. mean start of both had ways be We faced activities abate fully does

able year increasing on sheet, To when but confident A of are I just and track our so lot we on you we the balance given look of were some strategic focus to discuss in you product and in our indeed [indiscernible]. speak, flexibility. of facilities, balance X of the XXnd dividend affords a of under strength economy, are trajectory know of gentle the a for our pipeline. slowing reminder, we're several quarter, that our we resilience still the company our all hood, an portfolio visited future annually our months sheet of few And paying the saw to same you the ago, a

the to look [indiscernible]. Thanks more call, discuss we joining for forward and

Operator

now Results today's may your Thank enjoy you Quarter Thank participation. call all joining concluded. for you of Conference Fourth Call. rest [indiscernible] Annual your the the day. and has you And for Aptar's XXXX

AptarGroup (ATR) 7 Feb 252024 Q4 Earnings call transcript