AptarGroup Q1 2021 Earnings Report
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.
AptarGroup
AptarGroup
AptarGroup 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.
- Higher resin costs
- Raw material costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income