Aptar Reports Strong Fourth Quarter and Annual 2024 Results
AptarGroup, Inc., a global leader in drug and consumer product dosing, dispensing, and protection technologies, has announced its fourth-quarter and full-year 2024 results, showcasing strong operational performance and solid financial growth. The company attributes this success to increased demand in its pharma solutions segment, robust performance in closures technologies, and productivity improvements across the organization. Reported sales rose by 1%, with core sales increasing by 2% despite negative currency impacts. Net income for the quarter surged 62% to $101 million, benefiting from a lower effective tax rate.
CEO Commentary
“Aptar delivered another strong quarter and a successful year, marking back-to-back years of double-digit earnings per share growth. Our pharma business saw an 8% sales increase for the year, with proprietary drug delivery systems growing 9% in 2024. Closures also ended the year on a high note, demonstrating solid momentum. Net income for 2024 rose by 32%, and we concluded the year within our long-term adjusted EBITDA margin target, with notable expansions in our pharma and closures divisions. Even amid top-line challenges, our beauty segment improved its margins through productivity gains and cost management. Operational cash flow increased 12%, and with reduced capital expenditures, free cash flow rose 40%,” said Stephan B. Tanda, Aptar President and CEO.
Fourth Quarter 2024 Highlights
- Reported sales increased 1%, and net income grew 62% to $101 million.
- Core sales rose 2%, and adjusted EBITDA climbed 9% to $195 million.
- Earnings per share (EPS) increased 60% to $1.49, while adjusted EPS grew 27% to $1.52.
- Adjusted EBITDA margin reached 23%, at the high end of the company’s long-term target range.
Annual 2024 Highlights
- Reported and core sales grew 3%, reaching $3.6 billion, driven by favorable product mix and volume growth.
- Diluted EPS increased 30%, and adjusted EPS grew 18%.
- Net income rose 32% to $375 million.
- Operating cash flow increased 12%, with free cash flow surging 40%.
- 2024 marked the 31st consecutive year of annual dividend increases.
Fourth Quarter Segment Performance
Aptar Pharma
Pharma segment sales rose 4% year-over-year, propelled by sustained demand for proprietary drug delivery systems used in allergic rhinitis treatments, emergency medicine, and central nervous system therapies. Royalty revenues further strengthened margins, pushing adjusted EBITDA margins to 36%. However, sales of nasal decongestants and saline rinses declined due to a weaker cold and flu season, prompting customers to adjust inventory levels. The active material science division saw double-digit growth, supported by increased tooling sales and a more favorable product mix.
Aptar Beauty
Beauty segment sales declined 5%, with core sales down 3% year-over-year. Despite a slight uptick in unit volumes in North America and Latin America, the segment faced challenges due to lower tooling sales. While masstige fragrance, personal care, and home care categories saw growth, these gains were not sufficient to offset declines in prestige fragrance and skincare technologies.
Aptar Closures
Closures segment sales increased 5%, with core sales up 7%, driven by strong demand in food and beverage markets. The segment delivered another robust quarter, with a 260-basis point margin improvement over the prior year, fueled by higher sales and cost containment efforts.
Earnings and Tax Impact
Aptar reported fourth-quarter earnings per share of $1.49, up 60% from the prior year’s $0.93. Adjusted earnings per share rose 27% to $1.52, reflecting the company’s operational efficiency. The effective tax rate for the quarter was 13%, benefiting from ongoing tax planning strategies, compared to 23% in the prior year. Aptar had anticipated a higher tax rate due to a potential increase in the French corporate tax rate, which ultimately did not materialize.
Full-Year 2024 Performance
For the year ended December 31, 2024, reported sales increased 3% to $3.58 billion, with core sales also up 3%. The company achieved a 30% increase in reported earnings per share to $5.53, while adjusted EPS grew 18% to $5.64. The annual effective tax rate was 20%, down from 24% in 2023. Capital expenditures decreased to $276 million following the completion of large-scale projects.
2025 Outlook
Looking ahead to 2025, CEO Stephan B. Tanda expressed confidence in Aptar’s continued growth trajectory, despite expected headwinds.
“We anticipate another strong year, though the first quarter will face challenges from negative currency impacts, a higher effective tax rate, and softer demand in some end markets. However, our pharma division will remain the primary growth driver, particularly through our proprietary drug delivery systems. Adjusting for currency fluctuations and tax impacts, we expect to deliver solid earnings growth and enhance shareholder value,” Tanda stated.
Aptar projects first-quarter 2025 earnings per share in the range of $1.11 to $1.19, excluding restructuring costs, equity investment valuation changes, and acquisition expenses. The effective tax rate for Q1 2025 is expected to be between 25% and 27%, influenced by the anticipated increase in the French corporate tax rate. Currency fluctuations are projected to create a headwind of approximately $0.07 per share compared to the prior year.
Share Repurchase Program and Dividends
Aptar’s Board of Directors recently authorized a $500 million share repurchase program, replacing previous authorizations. The company may buy back shares via open-market transactions, privately negotiated deals, or other methods, subject to market conditions. Additionally, the Board approved a quarterly cash dividend of $0.45 per share, payable on February 26, 2025, to shareholders of record as of February 5, 2025. During Q4 2024, Aptar repurchased 218,000 shares for approximately $37 million.
Upcoming Conference Call
Aptar will host a conference call on Friday, February 7, 2025, at 8:00 a.m. Central Time to discuss its fourth-quarter and full-year 2024 financial results. The webcast will be accessible on the company’s Investor Relations website at investors.aptar.com, with a replay available for a limited period.
Aptar’s 2024 performance demonstrates the company’s ability to achieve sustained growth and profitability despite market challenges. With strong momentum in pharma solutions and closures technologies, disciplined cost management, and strategic investments, Aptar remains well-positioned for continued success in 2025 and beyond.
