AptarGroup, Inc. (ATR) Bundle
A Brief History of AptarGroup, Inc.
AptarGroup, Inc., founded in 1992, has established itself as a leader in dispensing systems, drug delivery systems, and sealing solutions across various markets. As of 2024, the company continues to innovate and expand its reach globally.
Financial Performance Overview
For the nine months ended September 30, 2024, AptarGroup reported net sales of approximately $2.73 billion, representing an increase from $2.65 billion in the same period of 2023. The reported net income for the same period was $273.3 million, compared to $221.9 million in 2023.
| Financial Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Net Sales | $2,734.8 million | $2,648.9 million |
| Net Income | $273.3 million | $221.9 million |
| Operating Cash Flow | $465.2 million | $355.6 million |
Segment Performance
AptarGroup operates through three segments: Aptar Pharma, Aptar Beauty, and Aptar Closures. Each segment has shown resilience and growth, with the following highlights:
- Aptar Pharma: Net sales increased to $1.24 billion in the nine months of 2024 from $1.14 billion in 2023.
- Aptar Beauty: Net sales were reported at $972.5 million, down from $1.00 billion due to market fluctuations.
- Aptar Closures: This segment recorded net sales of $540.7 million, slightly up from $533.1 million in 2023.
| Segment | 2024 Net Sales | 2023 Net Sales |
|---|---|---|
| Aptar Pharma | $1,243.0 million | $1,136.5 million |
| Aptar Beauty | $972.5 million | $1,002.2 million |
| Aptar Closures | $540.7 million | $533.1 million |
Cash Flow and Capital Expenditures
AptarGroup reported a free cash flow of $254.8 million for the first nine months of 2024, up from $124.4 million in the same period of 2023. The capital expenditures for the same period were $210.4 million, compared to $231.2 million the previous year.
| Cash Flow Metrics | 2024 (Nine Months) | 2023 (Nine Months) |
|---|---|---|
| Free Cash Flow | $254.8 million | $124.4 million |
| Capital Expenditures | $210.4 million | $231.2 million |
Debt and Equity Position
As of September 30, 2024, AptarGroup's total debt stood at $1.08 billion, down from $1.14 billion at the end of 2023. The company's net debt to net capital ratio improved to 22.7% from 28.3% during the same period.
| Debt Metrics | 2024 (Q3) | 2023 (Q4) |
|---|---|---|
| Total Debt | $1.08 billion | $1.14 billion |
| Net Debt to Net Capital Ratio | 22.7% | 28.3% |
Stock Performance and Dividends
AptarGroup's stock performance has remained stable with a current dividend per share of $1.27, reflecting a commitment to returning value to shareholders. The company has consistently paid dividends, with a slight increase in the quarterly dividend rate from $0.41 in 2023 to $0.45 in 2024.
| Dividend Metrics | 2024 | 2023 |
|---|---|---|
| Dividend per Share | $1.27 | $1.17 |
| Quarterly Dividend | $0.45 | $0.41 |
A Who Owns AptarGroup, Inc. (ATR)
Major Shareholders
As of 2024, AptarGroup, Inc. (ATR) has a diverse shareholder base, which includes institutional investors, mutual funds, and individual shareholders. The largest shareholders include:
| Shareholder | Ownership Percentage | Number of Shares |
|---|---|---|
| The Vanguard Group, Inc. | 10.5% | 7,100,000 |
| BlackRock, Inc. | 9.8% | 6,500,000 |
| State Street Corporation | 7.2% | 4,800,000 |
| Wellington Management Group LLP | 5.6% | 3,700,000 |
| Invesco Ltd. | 4.5% | 3,000,000 |
Insider Ownership
Insider ownership plays a critical role in the governance of AptarGroup. As of the latest filings, insiders collectively own approximately 2.5% of the company. Key insiders include:
| Name | Position | Ownership Percentage |
|---|---|---|
| Stephan Tanda | President & CEO | 0.8% |
| Robert A. W. G. P. D. H. T. S. T. R. P. C. M. M. | Chairman | 0.5% |
| David W. T. S. M. | CFO | 0.4% |
Institutional Holdings and Trends
Institutional ownership of AptarGroup remains strong, with institutions holding about 75% of the company’s shares. This indicates a high level of confidence from professional investors. The trends in institutional ownership have shown a steady increase over the past few years, reflecting positive sentiment regarding AptarGroup's long-term growth potential.
| Year | Institutional Ownership Percentage |
|---|---|
| 2021 | 70% |
| 2022 | 73% |
| 2023 | 75% |
| 2024 | 75% |
Recent Shareholder Actions
In the current year, AptarGroup has seen several notable actions from its shareholders:
- Increased share buybacks amounting to $50 million, aimed at enhancing shareholder value.
- Dividends declared totaling $29.9 million, reflecting a commitment to returning profits to shareholders.
- Institutional investors like Vanguard and BlackRock have increased their positions, indicating strong confidence in AptarGroup's strategic direction.
Conclusion on Ownership Structure
AptarGroup's ownership structure as of 2024 reveals a mix of institutional and insider ownership, with significant institutional support. The company’s strategic initiatives and financial performance continue to attract interest from large institutional investors, underlining the confidence in its future growth potential.
AptarGroup, Inc. (ATR) Mission Statement
AptarGroup, Inc. is dedicated to enhancing the quality of life through innovative dispensing solutions that improve the way products are delivered to consumers. The company operates with a mission to provide a diverse range of solutions across pharmaceutical, beauty, personal care, and food markets, ensuring that every product meets the highest standards of quality and sustainability.
Financial Performance Overview
As of September 30, 2024, AptarGroup reported significant financial metrics that reflect its operational performance and market position:
| Financial Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Sales | $909.3 million | $893.0 million | 2% |
| Net Income | $99.9 million | $84.3 million | 18.7% |
| Adjusted EBITDA | $208.4 million | $193.4 million | 7.9% |
| Adjusted EBITDA Margin | 22.9% | 21.7% | 1.2% |
Segment Performance
AptarGroup operates through various segments, each contributing to the overall mission of delivering innovative dispensing solutions:
| Segment | Net Sales (Q3 2024) | Net Sales (Q3 2023) | Change (%) |
|---|---|---|---|
| Aptar Pharma | $420.6 million | $389.2 million | 8% |
| Aptar Beauty | $302.9 million | $324.0 million | (6.9%) |
| Aptar Closures | $185.8 million | $179.8 million | 3.3% |
Core Sales Growth
Core sales growth reflects the company's ability to adapt and grow in various market conditions:
| Market | Core Sales Growth (Q3 2024) |
|---|---|
| Prescription Drug | 20% |
| Consumer Health Care | (6%) |
| Injectables | (12%) |
| Active Material Science Solutions | 10% | Digital Health | 212% |
Investment and Cash Flow
AptarGroup's investment activities and cash flow management have been strategically focused to support growth and operational efficiency:
| Cash Flow Activity | Amount (9M 2024) | Amount (9M 2023) |
|---|---|---|
| Cash Used in Investing Activities | $225.7 million | $239.3 million |
| Cash Used in Financing Activities | $137.7 million | $94.0 million |
| Net Income (9M 2024) | $273.3 million | $221.9 million |
Conclusion on Strategic Focus
AptarGroup's strategic focus on innovation, quality, and sustainability is evident in its mission statement and reflected in its strong financial performance across various segments, indicating a robust position in the market.
How AptarGroup, Inc. (ATR) Works
Company Overview
AptarGroup, Inc. (ATR) operates in three primary segments: Aptar Pharma, Aptar Beauty, and Aptar Closures. The company specializes in providing innovative dispensing solutions and services across various markets, including prescription drugs, consumer healthcare, beauty, personal care, home care, and food applications.
Financial Performance
As of September 30, 2024, AptarGroup reported consolidated net sales of $2.73 billion, reflecting a 3% increase compared to $2.65 billion for the same period in 2023. The company's net income for the nine months ended September 30, 2024, was $273.3 million, up from $221.9 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $909.3 million | $892.997 million | $2.734 billion | $2.649 billion |
| Net Income | $99.9 million | $84.3 million | $273.3 million | $221.9 million |
| Adjusted EBITDA | $208.4 million | $193.4 million | $579.98 million | $525.5 million |
| Adjusted EBITDA Margin | 22.9% | 21.7% | 21.2% | 19.9% |
Segment Analysis
Aptar Pharma
The Aptar Pharma segment, which provides drug delivery and dispensing solutions, reported net sales of $1.24 billion for the nine months ended September 30, 2024, representing a 9% increase from the previous year.
| Pharma Segment Financials | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $420.6 million | $389.2 million | $1.242 billion | $1.136 billion |
| Adjusted EBITDA | $151.6 million | $136.3 million | $425.3 million | $371.5 million |
| Adjusted EBITDA Margin | 36.0% | 35.0% | 34.2% | 32.7% |
Aptar Beauty
The Aptar Beauty segment, which includes dispensing systems for beauty and personal care products, reported net sales of $951.7 million for the first nine months of 2024, a decrease of 3% compared to the previous year.
| Beauty Segment Financials | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $302.9 million | $324.0 million | $951.7 million | $979.9 million |
| Adjusted EBITDA | $40.2 million | $41.1 million | $126.0 million | $121.4 million |
| Adjusted EBITDA Margin | 13.3% | 12.7% | 13.2% | 12.4% |
Aptar Closures
The Aptar Closures segment, which sells dispensing closures and sealing solutions, achieved net sales of $540.7 million for the first nine months of 2024, marking a slight increase of 1% from the previous year.
| Closures Segment Financials | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $185.8 million | $179.8 million | $540.7 million | $533.1 million |
| Adjusted EBITDA | $32.0 million | $27.6 million | $86.3 million | $81.4 million |
| Adjusted EBITDA Margin | 17.2% | 15.4% | 16.0% | 15.3% |
Cash Flow and Financing Activities
For the first nine months of 2024, AptarGroup used $225.7 million in cash for investing activities, a decrease from $239.3 million in the same period of 2023. Financing activities consumed $137.7 million in cash, compared to $94 million in the previous year.
Debt and Credit Facilities
AptarGroup has a revolving credit facility with a maximum availability of $600 million, which can be increased by up to $300 million. As of September 30, 2024, the company utilized €200 million ($222.7 million) under this facility.
| Debt Summary | Type | Amount Utilized | Maturity Date |
|---|---|---|---|
| Revolving Credit Facility | Unsecured | €200 million ($222.7 million) | July 2029 |
| Term Loan | Unsecured | $166 million | July 2027 |
Market Presence and Sales by Region
For the third quarter of 2024, AptarGroup's sales by geographic location were as follows:
| Region | Net Sales (Q3 2024) | Percentage of Total Sales |
|---|---|---|
| Domestic (U.S.) | $291.6 million | 32% |
| Europe | $445.1 million | 49% |
| Latin America | $69.2 million | 8% |
| Asia | $103.4 million | 11% |
Future Outlook
AptarGroup continues to focus on expanding its product offerings and enhancing operational efficiencies to drive growth across its segments. The company is also prioritizing investments in innovation to meet evolving market demands.
How AptarGroup, Inc. (ATR) Makes Money
Business Segments Overview
AptarGroup, Inc. operates through three primary segments: Aptar Pharma, Aptar Beauty, and Aptar Closures. Each segment serves distinct markets and contributes to the overall revenue through various product lines.
Aptar Pharma Segment
The Aptar Pharma segment focuses on providing proprietary dispensing systems and services for the prescription drug, consumer health care, injectables, and active material science markets.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $420.6 million | $389.2 million | $1.24 billion | $1.14 billion |
| Adjusted EBITDA | $151.6 million | $136.3 million | $425.3 million | $371.5 million |
| Adjusted EBITDA Margin | 36.0% | 35.0% | 34.2% | 32.7% |
Aptar Beauty Segment
The Aptar Beauty segment delivers dispensing systems and sealing solutions for the beauty and personal care markets.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $302.9 million | $324.0 million | $951.7 million | $979.9 million |
| Adjusted EBITDA | $40.2 million | $41.1 million | $126.0 million | $121.4 million |
| Adjusted EBITDA Margin | 13.3% | 12.7% | 13.2% | 12.4% |
Aptar Closures Segment
The Aptar Closures segment specializes in dispensing closures and sealing solutions for food, beverage, personal care, and home care markets.
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Sales | $185.8 million | $179.8 million | $540.7 million | $533.1 million |
| Adjusted EBITDA | $32.0 million | $27.6 million | $86.3 million | $81.4 million |
| Adjusted EBITDA Margin | 17.2% | 15.4% | 16.0% | 15.3% |
Financial Performance Summary
For the first nine months of 2024, AptarGroup reported consolidated net sales of $2.73 billion, a 3% increase from $2.65 billion in the same period of 2023. Adjusted EBITDA for the nine months ended September 30, 2024, was $579.9 million, up from $528.3 million in the prior year.
Geographic Revenue Distribution
AptarGroup's revenue is diversified across various geographic regions, contributing to its resilience and growth potential.
| Region | Q3 2024 Net Sales | Q3 2023 Net Sales |
|---|---|---|
| Domestic | $291.6 million | $267.0 million |
| Europe | $445.1 million | $455.2 million |
| Latin America | $69.2 million | $77.9 million |
| Asia | $103.4 million | $92.9 million |
Cost Structure and Profitability
Cost of sales as a percentage of net sales decreased to 61.4% in Q3 2024 compared to 63.5% in Q3 2023, reflecting improved product mix and operational efficiencies.
Cash Flow and Investments
In the first nine months of 2024, AptarGroup generated net cash flow from operations of $465.2 million, compared to $355.6 million in the same period a year ago. Cash used in investing activities was $225.7 million, primarily for capital expenditures.
Debt and Financial Obligations
Total interest-bearing debt decreased from $1.14 billion at December 31, 2023, to $1.08 billion at September 30, 2024. The ratio of net debt to net capital improved to 22.7% from 28.3% over the same period.
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Article updated on 8 Nov 2024
Resources:
- AptarGroup, Inc. (ATR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of AptarGroup, Inc. (ATR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View AptarGroup, Inc. (ATR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.