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• Adjusted Earnings Per Share (EPS): $1.20, with a 5% increase over the prior year period when neutralizing for currency effects and tax.

• Reported Sales: Decreased 3%, including a 3% foreign currency translation headwind; core sales were flat compared to the prior year period.

• Adjusted EBITDA: $183 million, a 3% increase from the prior year period.

• Effective Tax Rate: 25.8%, up from 20.5% in the prior year, due to a temporary surtax in France and lower tax benefits from share-based compensation.

• Pharma Segment Core Sales: Increased 3%, with prescription core sales up 10% and consumer healthcare core sales down 10%.

• Beauty Segment Core Sales: Decreased 3%, with fragrance, facial skincare, and color cosmetics core sales down 11%.

• Closure Segment Core Sales: Decreased 2%, with product sales growth offset by lower tooling sales.

• Consolidated Gross Margin: Expanded by 160 basis points.

• Consolidated Adjusted EBITDA Margin: Expanded by 120 basis points to 20.7%.

• Free Cash Flow: $26 million, with cash from operations at $83 million and capital expenditures of $57 million.

• Share Repurchases: More than 500,000 shares repurchased for about $80 million.

• Cash Balance: $126 million as of March 31.

• Net Debt: $870 million with a leverage ratio of 1.16.

• Warning! GuruFocus has detected 5 Warning Signs with BTSG.

Release Date: May 02, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• AptarGroup Inc (NYSE:ATR) reported adjusted earnings per share of $1.20, with a 5% increase over the prior year when neutralizing for currency effects and tax.

• The pharma segment showed strong demand, particularly in proprietary drug delivery systems, with core sales growing 4% in the quarter.

• The company was recognized for its sustainability efforts, achieving the EcoVadis platinum level rating for the fifth consecutive year.

• AptarGroup Inc (NYSE:ATR) ramped up share repurchases in the first quarter, buying over 500,000 shares for about $80 million, reflecting confidence in the company's future.

• The company has a robust balance sheet with a cash balance of $126 million and a leverage ratio of 1.16, indicating financial stability.

Negative Points

• Reported sales decreased by 3%, impacted by a foreign currency translation headwind of approximately 3%.

• The beauty segment faced challenges, with core sales decreasing by 3% due to lower sales of prestige fragrance products, particularly in Europe.

• The closure segment experienced a 2% decrease in core sales, affected by lower tooling sales and the discontinuation of activities in Argentina.

• The effective tax rate increased to 25.8% from 20.5% in the prior year, due to a temporary surtax in France and lower tax benefits from share-based compensation.

• Consumer healthcare core sales decreased by 10%, driven by softer demand for nasal decongestants and saline solutions, as inventory management continued at the customer level.