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Jun 30, 2020
AptarGroup Q2 2020 Earnings Report
AptarGroup's second quarter 2020 results were impacted by COVID-19, with Pharma segment growth partially offsetting declines in Beauty + Home and Food + Beverage.
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
Revenue by Segment
Aptar Pharma Revenue
CapyFin.comAptar Beauty Revenue
CapyFin.comAptar Closures Revenue
CapyFin.com 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