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Jun 30, 2023

AptarGroup Q2 2023 Earnings Report

AptarGroup reported strong operational performance driven by growth in drug delivery systems and improvement in injectables sales, with reported sales increasing by 6% and core sales increasing by 4%.

Key Takeaways

AptarGroup's Q2 2023 results showed strong operational performance, driven by proprietary drug delivery systems and fragrance dispensing solutions. Reported sales increased by 6%, core sales increased by 4%, and net income increased by 31% to $83 million.

Reported sales increased 6% and net income increased 31% to $83 million.

Core sales increased 4% and adjusted EBITDA of $181 million increased 13% from the prior year.

Pharma proprietary drug delivery systems grew across the majority of end-use categories.

Beauty’s fragrance dispensing technologies had double-digit growth in the quarter.

Total Revenue
$896M
Previous year: $845M
+6.1%
EPS
$1.23
Previous year: $0.96
+28.1%
Total Core Sales Growth
4%
Previous year: 10%
-60.0%
Beauty + Home Core Sales Growth
3%
Previous year: 10%
-70.0%
Pharma Core Sales Growth
13%
Previous year: 12%
+8.3%
Gross Profit
$322M
Previous year: $296M
+9.0%
Cash and Equivalents
$121M
Previous year: $240M
-49.7%
Free Cash Flow
$6.71M
Previous year: $10.4M
-35.3%
Total Assets
$4.35B
Previous year: $4.26B
+2.1%

AptarGroup

AptarGroup

AptarGroup Revenue by Segment

Forward Guidance

Aptar expects earnings per share for Q3 2023 to be in the range of $1.23 to $1.31, excluding restructuring expenses, changes in the fair value of equity investments and acquisition costs.

Positive Outlook

  • Aptar had an exceptionally strong first half of the year due to the tremendous growth of our pharma proprietary drug delivery systems and our fragrance dispensing technologies.
  • The strengths of these core markets are expected to continue into the third quarter.
  • The team has done an excellent job focusing on reducing costs while growing the top line— an effort that is continuing.
  • Our consistent track record of returning value to shareholders is underscored by our recently announced dividend increase of almost 8% and ongoing share repurchases.
  • Guidance is based on an effective tax rate range of 25% to 27% which compares to an effective tax rate of 28% on prior year adjusted earnings.

Revenue & Expenses

Visualization of income flow from segment revenue to net income