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Mar 31, 2021
AptarGroup Q1 2021 Earnings Report
AptarGroup's Q1 2021 results showcased sales growth and adjusted EPS increase, driven by strong performance in Food + Beverage segment amidst mixed market conditions.
Key Takeaways
AptarGroup reported an 8% increase in sales to $777 million for Q1 2021, with core sales up by 1%. Adjusted earnings per share totaled $1.09, a 10% increase compared to the prior year, neutralizing currency effects. The Food + Beverage segment demonstrated strong growth, while the Pharma and Beauty + Home segments experienced varied performance due to market-specific factors and pandemic-related impacts.
Reported sales increased by 8%, with core sales growing by 1%.
Earnings per share increased to $1.24, a 48% increase compared to the prior year.
Adjusted earnings per share rose to $1.09, reflecting a 10% increase from the prior year when neutralizing currency effects.
Strong performance in the Food + Beverage segment was driven by increased demand for food dispensing closures.
Revenue by Segment
Forward Guidance
Aptar expects Q2 2021 earnings per share to be in the range of $0.91 to $0.99, excluding restructuring expenses and changes in the fair value of equity investments, based on an effective tax rate range of 26% to 28%.
Positive Outlook
- Easier comparisons to the prior year second quarter which was the period most severely impacted by pandemic lockdowns.
- Positive mid and long-term view is unchanged, based on strong innovation and customer project pipelines.
- Future is quite promising, and Aptar looks forward to growing each of its businesses for the long-term benefit of all stakeholders.
- Strong innovation
- Customer project pipelines
Challenges Ahead
- Demand for prescription drug and consumer health care devices will remain under pressure compared to the prior year as customers continue to work off existing inventories.
- Results to be negatively impacted by the timing of passing through higher resin and other raw material costs.
- Current underlying demand conditions in our markets are not expected to change dramatically from what was experienced in the first quarter.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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