AptarGroup (ATR) Q2 2024 earnings summary

Executive summary

• Q2 2024 reported sales rose 2% to $910 million, with core sales up 3% year-over-year, driven by strong growth in proprietary drug delivery systems and margin improvement.

• Adjusted EPS increased 12% to $1.37, with double-digit growth in both the quarter and first half; reported EPS up 8% to $1.34.

• Dividend raised by 10% to $0.45 per share, following an 8% increase last year, reflecting confidence in performance.

• Free cash flow for the first half rose to $92 million from $27 million a year ago, supported by strong net cash from operations.

• Announced CFO Bob Kuhn's retirement and appointment of Vanessa Kanu as next CFO, effective January 2025.

Financial highlights

• Q2 2024 net sales: $910 million (+2% year-over-year); core sales up 3%; six months: $1.83 billion (+4%).

• Q2 adjusted EBITDA rose 6% to $193 million; margin improved to 21.2%.

• Q2 net income: $90.5 million; six months: $173.6 million.

• Q2 diluted EPS: $1.34; adjusted EPS: $1.37. Six-month diluted EPS: $2.57; adjusted EPS: $2.63.

• Free cash flow for six months ended June 30, 2024: $92 million.

Outlook and guidance

• Q3 2024 adjusted EPS expected in the range of $1.38–$1.46, assuming a 23.5%–25.5% tax rate and a $0.02 per share currency headwind.

• 2024 depreciation and amortization forecasted at $260–$270 million; capital expenditures at $280–$300 million, majority to pharma.

• Management anticipates continued growth in proprietary drug delivery systems, especially for nasally delivered CNS drugs and allergy therapies, and sees recovery in North American consumer dispensing volumes.