AptarGroup Q2 2020 Earnings Report
Key Takeaways
AptarGroup reported a 6% decrease in sales for the second quarter of 2020, primarily due to the negative impacts of COVID-19 on the beauty and beverage markets. The Pharma segment experienced growth, but it was not enough to offset declines in other segments. Earnings per share decreased by 44% to $0.63, while adjusted earnings per share decreased by 30% to $0.80.
Reported sales and core sales decreased 6% primarily due to COVID-19 impacts.
Pharma segment sales growth of 7% was offset by decreases in Beauty + Home and Food + Beverage.
Thank You Award costs of $3.6 million were included in earnings.
Reported earnings per share totaled $0.63, a 44% decrease year-over-year.
AptarGroup
AptarGroup
AptarGroup Revenue by Segment
Forward Guidance
Aptar expects earnings per share for the third quarter of 2020, excluding any restructuring expenses and acquisition-related costs, to be in the range of $0.80 to $0.88. This guidance is based on an effective tax rate range of 28% to 30%.
Positive Outlook
- Gradual improvement is expected in the second half of the year.
- Guidance is based on an effective tax rate range of 28% to 30%.
- The company is closely monitoring the changing dynamics around the world as countries continue to reopen their economies.
- The payment date is August 19, 2020, to stockholders of record as of July 29, 2020.
- Continued health and safety measures being implemented across its global facilities.
Challenges Ahead
- There is economic uncertainty in some of our markets, driven in part by the recent spike in COVID-19 cases in many regions of the world.
- Improvement will be heavily dependent on the pace and breadth of the resumption of travel activity.
- Improvement will be heavily dependent on the reopening of retail stores.
- Improvement will be heavily dependent on general consumer spending confidence.
- Recent rise in confirmed cases of COVID-19, especially in the U.S., has caused several local governments to reinstitute confinement protocols and this could impact the pace of economic recovery in the U.S. and elsewhere.
Revenue & Expenses
Visualization of income flow from segment revenue to net income