AptarGroup (ATR) 21 Feb 202019 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to AptarGroup's 2019 Fourth Quarter and Year-End Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session.

Introducing today's conference call is Mr. President, and Vice Senior Dellamaria, Investor Communications. Relations Matt go ahead, sir. Please

Bob Participating Lisa, and call and President, and you, and on Financial Chief Executive Officer Chief welcome, Officer; President Thank Tanda, everyone. our Secretary. Vice Stephan today Executive Kuhn, are

find our press a the well release on results of summarizes that presentation our copy our can as as You slide website.

to replay some review obligation information contained on forward-looking our our call includes therein. forward-looking We actual Please differ call SEC that results will in undertakes the website. materially projected factors conference forward-looking filings also could cause from no of this statements. Aptar update post or to statements. a the refer to to Today's contained those

I'd the to now like turn Stephan. conference to over call

good morning, joining and for Thanks Matt, us. everyone. you, Thank

on has quarterly by our and the strict the to of breakout health with employees let me comment we are none update recent management I have the say our taken our safety China coronavirus, thankful that of results, the team activities. to-date start on infected segment in been very virus. of Since employees an and sharing around Before measures the

do the but in travel situation. Wuhan January, operations any beginning been employee not China to we and region, restricted and from monitoring the have late and have We tracking in closely

conditions. keeping the pristine keep to in are We facilities most stringent place protocols our in

the we our received reopening national on supply the February to of whose pharma to after products holiday early operations from special production list. product permission are our the New Chinese period, order to in Prior in Chinese emergency begin mandated Year listed customers government

with people, movement to our information. update we government however, and experiencing are, some We supply latest continue to shortages due and the delivery restrictions the on of labor customers

this our We are at impact and it full the beyond. have the Though, assessing the in is on that impossible to extent also of stage predict impact. first will the business quarter the crisis continuously

area and on most be at business beverage travel the impact consumption, and prestige to consumption beauty to domestic Chinese the due prestige our to luxury risk negative addition In retail retail. appears significant coronavirus

see to for for positive may early products, sanitizing also too tell. a We to and our but pumps it and still closures impact is antibacterial business

proud have of and together difficult ground time. during We the in are China people how our on rallied extremely they this

Now moving other onto topic.

presentations and addition As Most further shown again in Sustainable was website, on long-term recognition is by Aptar leadership to Most the by named release is to Barron's This one sustainable magazine. our world. one inclusive the ESG America's reflection in slide the of XXXX sustainable posted a to of four and being accompany of the our is of orientation, of press that business and also Companies our Newsweek, row, year in named build of the Newsweek by for Responsible a Top now to testament XXX to a people in commitment Companies America, a in second our more

Turning to five. slide

intuitive rescue rescue occurs, thanks to seizures that a System. seizure with our our a Our recently and injectable be our growth FDA repetitive am pleased device in that delivering where Unidose U.S. treatment patented benefited and market, approved and the good fourth people This packaging strong nasal acute the convenient when treatment and treat share markets. and Liquid epilepsy. had quarter the Pharma was living consumer used in to from ready-to-use to segment by is Unidose proven only System active I first healthcare can

a with the new for of be to accompanying part we which part Aptar this used program to our device, patient International, -- of pharma recently drive our build as Aptar as furnace training out an partnership services product. platform, acquired Noble developed in on-boarding customer

and prescribed connected and called them tracks MDI this device built to partnered sensors, smart facilitate track medication an with to patterns. also ADHERO. LupinLimited diseases, unique their improved top to device respiratory called is usage the enabled This India's MDI. first patients to reusable MDIs product ADHERO designed device chronic the with metered-dose help is also launch We device smart for in treatment add-on adherence of patient's the and regime. is With Bluetooth daily usage that consumption attaches a inhalers,

combination the product our And moisture technology other active patented launched configuration. polymer first-of-its solution. oxygen three packaging in we a news, phase This utilizes active pharma and film adsorption new kind active scavenging platform

with leading Analytical, we and on platform on-boarding expert an and slide it Nanopharm International. year device the in outlined our Noble acquisitions Pharma press six, shown was broadened laboratories as of training in analytical our release, As our segment the services exciting Gateway for and patient

launch customers technologies, featuring several shown year, Unidose the slide. on during Spray our U.S. Powder new drugs System, Activ-Blister FDA Unidose Nasal including Nasal and device, approved our Also the Bidose Packaging as Device Solutions delivery

Now, let slide segment me turn + seven. on the to Beauty results, Home starting

this previous the considerable challenges from customer quarter, the from care including weak demand we market, personal destocking. in faced As segment saw

We on several also beauty line reduce inventory saw growth. weight beauty top which customers our

the and surface exciting meeting for our occasions segments. fourth new Japan, we sales customers in Tokyo, three of our had business opened will quarter offices regions all which activity in as we support these However, some and in Dubai

and some our China, new leading in of close China who Guangzhou, celebrated our world's customers grand giving We are also the proximity to facility manufacturers. brands the opening in of southern

the our new In Clarins we quarter, Plant system. facial to serum dual-delivery Gold, dispensing features help which a called launch

and custom perfume including be several K featured Dior on metal spray pump. Miss LVMH featuring our by pleased new featuring Dolce also by de We launches European our eau collar N’ pump & Gabbana, called toilette Roses fragrance the prestige to Rose spray and

anti-wrinkle In Tata Vitae, pump Harper. serum, indie Elixir the North brand is by on serum America found an

portfolio Finally, aligned with post America, consumer black resin. a our year closures drive we this circular economy, stock, starting recycled North our towards are converting in to

to come. would strengthening And years like for moment our now to outline beauty we slide keep Now, take a to eight. business how winning I packaging to are

the equity on Chinese leading exposure solutions BTY, to a in a initial high beauty have color manufacturer our strategy This acquire is for beauty Chinese key our in growing quality local complete interest we plastic industry. the fast sub-assemblies to and of metal metal closed components, capabilities our First, step market. cosmetic agreement decorative increase XX% the to first packaging and

an serve concept-to-launch the recently acid innovation in leader They of acquisition announced add American Aptar to complete to turnkey the cosmetics Secondly, Beauty solution. FusionPKG, light packaging agile capability color high and a quality new North market. skincare and

brands. fast FusionPKG and formulation engineering, and relationships both creativity, existing customers indie proven global skincare offerings, has strong many with go-to-market and with cosmetics With

and called to are will Aptar + FusionPKG excellent beyond businesses incredible regions. America North Home to eventually scale is complement and be an is Today's BTY this that Beauty accretive to market beauty, specialty. they look and built an segment. profitable this Both we to margin what fast is demands other They will growing business offering the selected FusionPKG have

the best Finally, and delivering transformation. ensure adapt in ongoing our our to market continuously we business conditions, our next taking optimize the to to operations are We steps we're customers. very evaluate to changing

existing result, and we have decided in to our rationalize other a North and Connecticut America. capabilities As close into absorb production Torrington, facilities Stratford these Aptar and sites

by of production of the end to planned Transfer year. completed be is the

+ customers in be Beauty profitable a With we on long-term American focus changes, and our will better growth. to Home these North serve position

Illinois to XXXX streamline continuation modernize of and is facility alone regions. Home consolidations footprint. a our in In our Libertyville, sold This taken our other we've Beauty have and molding subcontractors, we of to steps made + one other other we

facility For Thailand was example, we we and consolidated in our facilities India we into two our in capacity production one, Indonesia Argentina into in into new that two location. facilities consolidated a the consolidated

nine. slide onto Moving

our in + on due sales costs sales Food segment negative and core our resin customers. to Our of passing the decreased beverage declined closure to Beverage effect lower

in coconut oil and newly Aldi for North actuator. redesigned We including launched spray the avocado which cooking America new quarter sprays feature our in products

infant also Non-detachable, Youcui tear-band in on featured Our of and tamper-evident, China. formula the closure brand

our the in featured new on a are by water in Brazil. Danone Sports Beverage line market, Dasani bottled on several Ecuador of bottled waters In and Disney-themed closures

reduction a comparison prior through to growing we But to it term key one a overall, where quarter challenges. the customers. summary, it year difficult these in short In inventory markets. due key our by challenging we several Making was of the over in were navigate

taking the growth, including with our operations. for strategic BTY several of and long-term + to investments growth high constellation areas and us FusionPKG, We in are position Home North steps American Beauty

turn will over that impacted Bob I going through that, some it now is walk financial to the With to the who details of quarter.

fourth Thank briefly morning, slide you, everyone. details of results, through and our quarter concerning with starting XX. some Stephan I'll the walk good

from currency impact costs For declined lower X% had in a of declined X% the due X% X%. of passing from quarter sales and to of XXXX, the core sales through positive customers. impact Reported our negative part acquisitions and sales resin to fourth rates reported

margin to a sales of due segment then comparison Pharma of to X% was core prescription X% up and EBITDA XX%. Our sales Core prescription market the growth year, achieved a previous XX%. market adjusted the where decreased the to tough

the healthcare strong good XX%. consumer a This drug when eyecare. what performance up is sales very over to and Core year, delivery consumer demand in increased X% market to due strong healthcare was dermal growth last was

and to sales our across Packaging across Core all for drug a increased packaging solid active including increased Core strong sales XX% dose injectables variety demand most Active-Blister due market market the of regions, to Solution applications, the oral to XX% delivery. applications.

inventories, core margin sales especially primarily resin adjusted due the decreased Beauty in personal and Beauty negative Home’s care + customers our segment, Turning costs. the in passing quarter. was to XX% impact the to reducing + market, X%, on lower from Home EBITDA

beauty X%, Core decreased to lower primarily the market the that and personal the an fields. the X% Looking to air to growth core tooling mentioned. sales and laundry at by application due in the destocking homecare market previously increased Core basis, care care due sales X% market decreased I to to sales to core sales to due customer sales a sales. market increase

negative the negatively and Food adjusted sales X% compared improvements at + This which raw Food Beverage + the XX% the material growth Beverage lower impact X%. to passing quarter. productivity EBITDA from in prior to by Looking resin our costs -- the beauty costs, due includes segment, lower year. affected core reached decreased on margin our

to each market, granular Asian market lower primarily categories. to our Core food sales to for beverage increased XX%, dairy market the and beverage core of powder to non-beverage is due sales customers. the which at solutions Looking X% the decreased sales sales

an earnings to slide earnings per $X.XX. effective per quarter $X.XX. share rate Prior year adjusted share XX%, of totaled tax With now XX. fourth Turning totaled comparable

highlight XX cover and and our our per earnings share XX and X% performance Slide sales growth core annual adjusted growth. X%

to XX outlook. Slide our refers

earnings share, XX%. to in the the for expected first range expecting per We $X.XX an of of per share to using XX% to range tax are quarter $X.XX be rate

from flow other approximately few to cash back Capital totaled $XX then to share million. operations a Stephan. on flow approximately strong approximately it compared and $XX and and have was In $XXX were free hand cash shown XX, I million expenditures details to $XX quarter, slide the was year approximately ago. a million, million will as I our reported

to restructuring This flow. Higher cash free $XXX earnings record less in costs due a brings to flow million free capital and million and the the cash to prior compared to increase in working $XXX annual to improvements acquisition led our year.

balance a and We was basis debt XX%. strong a sheet continue approximately gross capital to to on have

While net less was remain levered. it than two And approximately times on XX%. we a basis,

comments At provide few Q&A. this we time, before Stephan into move a will

Thanks Bob.

achieved to adjusted It by our drug year leave grew of was Pharma for We good an and outstanding for new year delivery the segment, EBITDA driven by year margin X%. very takeaways. was Aptar few XX%, of I'd a for performance with which a closing, part grew with another It a like XX% key active in also launches. EBITDA adjusted core increasing in sales year So, X%. you by

Terracycle’s services also important topics. of and pleased Nanopharm on Analytical. parties platform two PureCycle out platform We Gateway be built key to the Noble and by innovators partnered our We recognized Loop for ESG pharma and independently with with we multiple International, were acquisitions leadership sustainability our

in our XXth is an great of sheet shape was year paying XXXX dividend. balance increased consecutive and Our

due from uncertainties the the Looking we economic coronavirus faced quarter, demand outbreak. to the to impact unusual first

to near-term comparisons prior in in each the are and growth, to Our our opportunities challenges, our a businesses. is growth, difficult continue we of for remains, somewhat about exceptional key pharma driver acknowledged we'll long-term areas but our optimistic of compared course, of profitable very growth high Having facing business invest year’s growth.

With for that, it we'll questions. up your open

you. Thank [Operator Instructions]

the line from of And question our Bank comes from first George Staphos of America.

is Your line open.

transformation a milestones Thanks XXXX? give morning. of you for the the progress us Hey, in quarter Stephan Good everyone. you in on quick what quarter, the and the and terms you are could it details in the the Hi, question the first and saw next Bob, I kind on XXXX. congratulations business update had how helped progress in of

there Is destocking is do And then on. I up I track long for first going common the Any this of when we've thoughts follow it is, before the the cold. a kind destocking next the the with been on had that that's done? just question finding cure and out ends, largely all doing recognize figure quarter? a there. this destocking you But for it think Is in Thanks. done? is done when time,

the I a moment, Thanks, prefer at George. but. for And cure coronavirus

Okay. but there, … want go I to didn't

focused has factories in on, All well current really North front we in top OTF's on service and that very, and happy So year on end to lot and first the stepping around on had well, others, In the back, They our also are now transformation, improvement retaining. the focused on consolidate customers America. was and scrap of business. amongst so again a much XXXX, very as just us a improved commercial worked our the on levels. reminder, situation line the with everything rates KPIs worked allowing

in acting editorial. the on made in CPG of additional and always which negotiated this always year. the American some Also, like And mentioned inventories, year, we've a Council capital, takes fixed and bankrupt, look with Works the driving with cost, working footprint customers huge progress almost course, into I this executing on then good added work would they working up progress G&A actions, our with big XXXX we that some of we've those our say Europe, is before but when a time we receivables, consolidation. agenda part as on forget in payables, We've North action it's

you gives think So for of the that kind outline transformation. I the

we executing one setout that hand, I do. everything the good, because On feel we to are very

the feel On given visible. results I line drop-through the other hand, the at look good the is environment I, when bottom that demand current course, don't to of that the not

the is that. that, the a today to of this has when to exchange kick addition XXX we XXX, up also exchange In quite so something rate bit changed from off rate

question, at I could second your phenomenon, we on looking said, when QX, scenario, Now destocking think it just the two be quarter we so were QX.

different we situation with coronavirus the Now, have of completely course, a story.

quarter towards next run that care North early on end personal quarter, coronavirus the America but the on destocking that hopefully So, is side, the overlay will its impact. course the of or

more me just Let that. say around a few words

running. On the workers can't to one our XX% about only factory due hand, because of course, our restrictions. we China, great, return nobody the infected, plants our get in to travel plants But are running are to

you a give practical Just example.

quarantine She Asia to she hours for self down to two road for Shanghai. if road Shanghai, the in to has takes President visit trip is if Our which she weeks the factory. sits to her two again Suzhou, returns

loads. for But example, not. heavily is container full full starting for and understandably up containing movement So, parts They're of people the transportation restricted, to truckloads opening so. loads,

to, government compromise same So on situation. course, coronavirus business, the -- the the on Chinese time the open accelerate it's of at not for the wants being hand, one really

is And through domestic to in month then China. the for first We usually happen March? quarter quarter. us is read -- What by in in will the our have far the in exactly the consumption difficulty March biggest

and more consumers from We and been People has other and traveling, the Coast in royalty are have not on see not people traveling. the or shut the traveling, we the luxury down West Chinese not conferences that fact more Europe. Japan

consumption travel retail impact on the will -- the the be read of on orders what the end then, through and of us. course, on So that

because used some more be call products, Chinese, products just and what down don't that early this we might the to sanitizing all of in some by things. noticed we opened our just of of at these be the do So, know it. range will just the up stage And supplying that offsets, the uncertainty. outlook It's you've the to supplied what U.S. too to

Stephan, this that. very be answer I hard to the tell. thanks question for generally will recognize of all to And

for a some guidance put quarter. nonetheless, us slack, will, did you range but give so, out the And we which

you assumptions take end your in just give end So, my details terms as over. and higher range tape, of terms what's a of of range it's wide coronavirus? turn And for comes. just of it a can lower us it and it's if fine your the couple that's I'll in question. that's in it But And we'll too.

can that downside way Yeah. up the the call for cannot we we with and things I see normal account for certainly orders certainly, it the see. We mean, last postponements. we the cancellations we best range minute opened to we or see. And can’t it

that's we it. about think went I of kind how

you. Thank Okay.

comes from Our Neel Morgan question Stanley. Kumar from the line next of

Your line is open.

taking Great. question. Thanks my for

terms Beauty Beauty And of much through independent XX%. then of top million How the would on your think restructuring consolidation + a cost going is as much XX% of Home expect your of in operations, forward how target margin XXXX? you Just we And + the $XX follow-up the the opportunity from how of to Home growth? and about do of benefit in American flowing this? should North line

Yeah.

Let then on the can one maybe me Bob second the one. take first you and comment

X% We're grow we to we're be fully we and one, did to our doubt changing have But for have that the will our grow Beauty end I + -- market as certainly, be And growing. which committed continued assume to to targets. able it Home, X% to in well. So, the is range able not targets. no

how an customers, important and repositioning, hard place and fusion we that, FusionPKG to And by said capability So, close we with plays case repositioning that's role. partly work our earn growth. clearly the And their moment. need that at having supply also that's are not to the

Stephan to time something that appropriate believe due factories efforts. North has I we've the this We from the efficiencies just the our want is consolidate part American And Yeah. to said. Neel, some of that to in reiterate transformation gained

transaction has that this right over would an payback two believe to the we attractive we that three is So, expect years. to be payback, and achieved

needs. to your More and specifically to I thing up minimal it's the become important our expect to to towards quarter business in on that the be think of XXXX. and going think is customers' But another into to the takeaway agile fourth modernize most move -- Beauty end question to and in Home what the ramp our + XXXX more efficient XXXX, it's more I more

you also terms you about in seeing talk magnitude experienced And trends you're That's quarter? can in can market, of fourth slowdown the in us pharma, the allergy just Okay. prescription? OTC give what the So of helpful. you the a sense in of and both

Well, it is to bottom it we for growth of the allergy there's range, is kind doing a basically said pharma rate. grow GDP chain, year. rhinitis in end the inventory the excess overall is towards -- maybe at would And of what more do normal reverting business but some the the I the certainly, to would this is range expect

from KeyBanc. question line comes next Josephson Adam Our the of from

line Your open. is

Stephan, Bob, morning. Good Matt,

Adam. Morning,

Adam. Morning,

George or sure I trying -- I'll to know different Morning. Bob, is Stephan try this. it I'm way. get at Maybe a

there to of exist to So, $X.XX for your you were and range longer how roughly, would destocking, higher is your a $X.XX, customers that us precisely, didn't is much sense not any give be? guidance if no XQ coronavirus way if

business. China, most -- of the still I Beauty a to are + published you but and have we work point much our targets of to back closer Certainly, do for margin +Beverage Those certainly Food would hypothetical. of heads. our target. published shaking but were We to kind lot Home in our

to continually really mean, this, time then -- you be coronavirus. right? think two-quarter -- on no had speculating, beginning Adam, this the and last destocking about we October We on could right, the were idea add into you is in if what that to going a magnitude get impact phenomenon, was And just we I the spoke, QX to impact we this QX. talk now mean you Yeah. I were horizon to back as

time kind QX difficult for So, of real That's Because to quarter. were. exactly. difficult what outlook on out to for the solid our us came were prediction right the have those formulating first -- parse It's separate two of didn't the our coronavirus a prior head. to coronavirus. it's at January, shaking they the really why we We in we're the beginning for

think in you range quarters be your target lot three easier maybe Do of comps the range Yeah. be for you give middle comps us you sense the the growth next the range expecting low-end in the in understood. difficult may year. for quarters in said, No, I three I then the a first below XQ. And the a expect of you're you Stephan, long-term pharma regard? that know of get really and XQ? at to Can what the and have in

XX% the Yeah. a with precision, just If happy. would our I I could I quarters. Look, be reminder, run mean, as previous grew business that Rx

a on allergy to the read to we season. normal two-year the is bad still going So, something down that is, rhinitis through, shabby, A slow allergic not lot flu on how clearly depends now depends pace. season a too said more

we So, range February. X% range, XX%, the hey, certainly uncomfortable that's said, why end of at of it's lower but to the our

we cannot so, quarter-by-quarter our play. give And you

I so have the out in ago, and in these fair that are just so + $XX Stephan of laid Yeah. is these savings sort to of related FX related, other that Beauty $XX assume you're much a million you And completely couple that offsetting FX that of but -- to they're getting you're headwinds -- that years million, you really of know to actually headwinds, there back on just all talked business? target come many hit demand then demand target Sure. terms Is Home it Understood. the restructuring, that up. that

Yeah. yes. is, answer The short

help with help didn't nor are we that we much it happy our it would you lower. and does we doesn't of shareholders, course, be do what did, not if either. So, that But we

published into is one one or target way business So, not we are another. of footprint those adding get This America its profitability we're North additional will stopping The there. activities. range and

you. Thank

from line the our Panjabi from question of Baird. comes Ghansham And next

is line open. Your

guess I Hey, morning. to follow-up guys. George's and question Good Adam's a question.

midpoint sales by Beauty of for the B&H, to Home. guidance -- the or as What down XQ there uncertainty the such well? at Core in are influenced XQ. mostly back the by end and predicated of with you that is X% So, gave? And is end + it upper segment guidance is as you assuming lower mostly Pharma

I'll take that one jump. and

thought I so.

really is So, as don't segment obviously, into But sales looking majority I Home the wise Beauty of mean, I guidance core size + we give mean, out future. the business.

So, the overall core sales is happening influenced in going by to be what's heavily + Home. Beauty

Yeah.

the related. Pharma supply think is much the demand what uncertainty given have door challenges, and you in the the out we challenges not can I so in get China, chain labor

big on from your that that How right standpoint? is -- on is But overlaid And it think to do in growth on think you're long sort side? of standpoint. know that back and if at that is reasonable the a a of for is in when impact different travel and quarter, realistic was you what while SARS look impact you What Okay. pretty quarters Is the sort what playbook as existed -- do you channel? now. this travel obviously China one and place the I a seeing a on had quarterly two customers impact just from which retail, of global terms it prestige

Yeah.

no was investment no network, and -- millions. no high it XX is I to actually completely travel by economy. at height Chinese train the and course, economy, of was was an started There we all no SARS. a It of in Of analogies this It and years SARS affluent hundreds was with network, remember, different restriction. flight ago. let's the we domestic analogy. China speed look the was consumers But

good the impact So, if in pause XXXX/XXXX this large you will, took a a Europe button. scare terms of hit consumer. -- the is economies the of in U.S. anyone, to in proxy. And is Not and probably XXXX/XXXX, kind not reality on pullback but the two is, proxy better of

pause absent. consumer China button, is the economy one Now the it's hit large and and

bathroom So, these gain think comfortable be whatever how lot people that a confidence going is I with measures CDC can how your again. or of back not travel done. lot airplanes. to want premium with in will lot that -- run much how will replenish. be I depend to of comfortable quickly have was certainly a calling demand, get pent-up the But your skincare, Certainly, compete airplanes people happens, canceled or people -- will that will dry getting there a on again. in and not getting quickly the on quickly fragrance bottles in everything am And have is so to the and pretty lightened then people when do all will And get

sales And deck, XXXX or the XXXX XQ, are Is one cited but material core you and have -- obviously, in line one the I applications that actually benefit final in will Okay. way, you you on sort mean, future of products opportunities? all generated for throughout they they mean, new X% XXXX? pharma. just difficult comps year-over-year. in is your that right slide I these Thanks. a trend

Yeah.

range. will later. don't is the in what and kind them to how experience is the the of success come up doctor's end launches the then up more of ramp new some not, do, lower think of of call always come them pharma ramp of -- than the office. that say It's hard I the Some But will to have I

you. Okay. Thank

next Wilde our line Markets. question BMO from Capital comes the from And of Mark

line open. Your is

Good morning, Matt. Stephan, Bob,

Morning, Mark.

Good morning.

in issues. kind less taken in sales? particularly the sort been in the just kind fourth always incrementally about a coronavirus even destocking luxury I'm wondering customers, from of -- last of the talked guys was kind had have that Bob, because less quarter. just place wanted and that the you are the emergence -- area hearing to a out, prestige start pulling of I you Stephan prestige of travel And back and I to of four six about fears sales, weeks, of you duty-free kind that slowdown, of further they the

this boxing. shadow all At we're stage,

they people because get about. that think I don't for the across product the product. all from sanitizer products. anecdotes see don't for people We people So, see they you they see we give We things orders, because orders, the talked out think more ocean. advancing can ordering We need can they the pushing

-- of all -- this quantification that anecdotes how work I'm we So, not for It's it exist, but wise. through good. will

what's your and of meeting heard five kind Hagge we XXXX XXXX/XXXX? you haven't remember Yeah. months. just are with Steve I perception of customers -- it you there to March Bob, in from saying or in comparing

mean was financial little mean, Yeah. that I a more a different, Mark. bit crisis. I -- that was that was of

more in that think in XXXX, the a did were And as chains. balance time, benefit back of customers financial their I a was supply interested So, sheet us. we having to strong certainly, viability

think a was there a This that more little bit of diminish. or base is I would concern supply So, shrink there different. the

But bit It's beauty that SARS past, said I with. in little the a don't XXXX or analogy concerned we started XX% think issue is, But a QX a now, it's products impacted different. beauty bit the draw range. more to QX either But there was financial see on XXXX. the be crisis really was or issue. to declines how said, think a financial certainly, the difficult business, some side, that to certainly of good this also all is precipitous They a at look we down, in tend by little turnaround. financial Stephan as but and in QX, to are right we if pandemic everybody QX discretionary. I more things as

Asia. just Latin are about Okay. just curious you've I'm Home. And you of but on some -- America the doing restructuring + then the and you talked U.S., that not in done in only Beauty staying

you could having the some moves more in give at we that You had been Works Councils all? that didn't there. And with the months over in perception about probably see XX potentially Europe. is Can mention some us any over Europe be if my could pipeline, and color conversations last you what

Look, Work the all the the with are discussion existing here projects. about Council

been and the that lead of negotiated. around we have Czech headcount. activities and number a will up financial example, we the streamlining running and center And in for opened overhead and the consolidation is plants, has shared of Republic service in So, that to that and

Let projects. is speculate future that me to on the not This discussion. have not place

also taking FusionPKG acquisition, the highlight, one, new consolidation, kind steps in in beauty of the the in growing general, to about fashion. of, building And we’re, we're with out of of excited The fast parts would BTY. capability front the capabilities building addition on business. light service foot other I the Very asset an kind the on course, out in more

Yeah.

from kind a both with U.S. puts resin impact you as the one just of Bob, us takes just the of from Last is it potential to from lower stronger for me, a and dollar? follow-on. help kind possible and Okay.

Okay.

the on of did fourth it line. So, quarter where cycle again, on positive pass in resin about the on are we through. million depends the bottom in side, that $X have But we

side, X% we On in line top though, hit Home the on Beauty the also get Food + side. it about X.X% was + Beverage is about the

So, the line to going impact on is at that and depend we're where the flow-through bottom in cycle. to the

true to today holds move it EPS and past euro basis. what a penny far in still for rate, really we annual it an every on as equates is $X.XX to that As dollar in the said currency, the

-- we look first this and the and where if about in of half at you started the kind than $X.XX, half quarter now it the $X.XX of we're this around were trending first fourth of averaged year more $X.XX So, quarter, we category.

math quarter estimate comparative it will allocate -- of moves. do and that the versus one over kind that you spread over have a out the you if year, rough of full So,

I'll Okay. Very good. turn over. it

Daniel line Jefferies. from from comes the next question And our Rizzo of

Your line is open.

cash Hi, is and closing the for tell Could guys. Stratford you? is -- Torrington? cost us what How you cost are the

but the in about million not of Again, cash neighborhood it's $XX costs. specifically,

I is -- U.S. that are say sorry of you did footprint -- maybe When can at? on color what you the for consolidation kind there think additional in mention that? room you did mean, or provide magnitude, I looking you

manufacturers referring No, the consolidation don't was think I other is our other as and like that. we we But to such that I think further U.S. things any contract think the to activities there that what facility our done, Libertyville signaled in one U.S., we had in were of I no, selling

question. last then And

the some Just is trickling was the don't if the there? provide just I couple the They've or what's can there it's of know issue, last going kind color of on I wondering sort within segment, down on of been quarters. mix Pharma if timing just you over issue, margins? just

Sure.

couple was mix we're you Rx can -- if and the specifically a effects. the QX, looking I mean, down is I up. were right? One So, of got segments issue, other three

CAT we than know or So, a stronger -- active [ph]. margin packaging we've our the said and injectable has in Rx our profile past

the impact to going are mix. You get on

last had of in which the year, we gain propeller fourth XXXX the on QX, a positively quarter Secondly, impacted health, margin.

had are effects comparison you on XXXX. impact those at and an XXXX if that margin QX, So, QX, the the are looking it, two

much. very you Thank right. All

And our the Fargo Securities. next Hajde Gabe question of from comes from line Wells

open. Your line is

Beauty look horse talked Two your to competitive us Home. this segment, to of the outside structural gentlemen. changed. beat headwind that is guys are in more any dead kind One, else with of incremental world there at morning, of in questions. us comfort to maybe + you assess Good about give hate for that or actions on your way I here the you fact When something But destocking? might is taking landscape that some suggest -- efforts or transformation the a

just Stephan, remind or merit mentioned margin still another, us your curious businesses to then getting these of you strategic way kind then one and target, maybe And of different on expand you of the I'm could if all having that together? of kind

presence the think Home the question segment, I such for fast some maybe the significant competitive type do So, And on quite we we've I speak with color landscape. deal mean, the within about talking in cosmetics of it? and to a don't categories, we me was lipstick Beauty let growing presence what questions and faster skincare, -- are have while color headwind have many as growing skincare market. cosmetics. foundation, a in of + is really time structural that How been there

give of what So, growing markets. those investments seen us making to areas us capabilities I you've that the some after faster in is go think

related. or that market call structural we So,

I The yes, moves acquisition think And strategic those are the the a thing of landscape about about all about to like BTY, is, some innovation. model. addressing other It's said. with FusionPKG, acquisition of It's that slightly design. those business changing markets all of our speed all again, also It's like different operating as you market. all are

add to of we destocking, two question, is non-repeat, color destocking last two year. on we is had J&J that as last said there's still maybe care I especially the really factors Then baby launch think time, the some that One the the play.

not it well. to it's not doing addition repeating, In

is and you want, of they not. element what you there horses they if the on in So, play -- bet how what or an marketplace win

to at here want is play Just remind folks well. as that

at Now, on your at we and other periodically. is look that relook frequently question, course, or of one

high our operations, Just assembly they that reminder, at business, systems our pharma when molding, between look requirements. the are speed the precision identical room they're as in all clean basically business, pharma quality a high unit pharma our you with injection difference regulatory and in fragrance environment, a with

capture capability how do an that a the drive beauty to we terms to from learned So, in company. look in the the area. bringing business across to pharma operational that something at we now we lot is setup, there of that how we value, Also, -- services value, leverage is learning expertise of

competitor wanted at be business, point, businesses. And a you've separate business. how look least, and if to a that, although, separate ever there then not then depends the the created for last last significant you the you at you bill tax the pharma will new the And moment

doesn't at look we ton sense. make to of but it, it seem So, a

sold more very of now Gabe, for example, The majority right, food applications at type and years. what safety the And see that back, four diabetes of one was acquisition right? living, we -- If the business you pharmaceutical kind exciting three, let current after market, go we to files breathing say, what alike. of look products. tester CSP let's add me is Technologies, applications

Now, the cosmetics beauty potentially around in we're applications and technology. market antimicrobial investigating

of So, end more we and I how markets. on the that a leverage how across good that technologies that's the can think we and example have, focus we multiple capabilities

a by there Home a Maybe Latin for Very slightly kind region. much and Beauty + note, appreciated Bob, how thorough down bit for about more sometimes More answer, positive on give has volumes thinking America. specifically you been a flavor of gentlemen. of in little trended optimism us

if us curious Just any can sense you give there.

Sure.

maybe consolidated of at of QX. So, And start, the the for overall Aptar really just were with the level Europe. of exception let's down all regions Gabe,

to to Europe QX. being contributed the So, biggest region what positively is

of we Asia markets if were in and the less, we're look all we at on it in course, less Latin the U.S. down more and focusing segments So, in by so Europe, America in specifically Home, + that and in, Beauty

Home, Food then looking I down other And again, And QX, out we for + positive + regions similar for within saw Asia. looking comparatively. rather. our full year, the the in was about, + and consolidated down And to been for or were we've think Beauty good slightly America the Food Europe categories, in Beverage growth talking Beverage Latin our as segment decrease

is, obviously, in is Pharma very off small quarter the base. Europe, and of predominance very, then, the and strong in America, Latin in And U.S. the that's very but businesses the Pharma, which then fourth where down a in

you Good luck, much. Thank very gentlemen.

Thanks, Gabe.

line comes Courtney from the Blair. of William Our Owens next from question

line Your is open.

Hi. Good morning, guys.

Courtney. Hey,

how Asia initiative, slowdown for like kind the like Asia that of on at like on, potentially -- hi Thanks. and I question a coronavirus thinking are the your manufacturing minds about the I Just made to guys' in -- for perspective of you supply how -- on in or impact Asia is present? more guess guess chain going

Well, on In out alone travel. street you, back to all I let get daring and think, the going then stores, of have the term. longer about and the course, the consumers to short-term short-term, into this is mid

the the getting three it major consumers is of consuming. of about back economies all So, one

any the longer think term Secondly, has don't I trend. on it impact

if they it need to in pushed react really XX much that react rapidly, to to too to little much see We beauty. XX of agility our more important. do The need could it, effect We be regional that you customers are moving this, fast and months, used you of capability more XX. just much a take fulfillment rapidly. Launches and a but to bit contributor more and to is a more to that world again able wars is also trade where then

You need to three. in get out door

major flexible. the chain be diligence, that in on to means delay You need on setting across I that and do planning the like these we that supply ocean May of regions because way. capability get making really scouting That have plane had months people to don't due and filling possible. some the a capacity, six of by key cannot do each to up the things that's think local and

kind + that as Thank it. are you Asia-Pacific. predominantly you of from instance, kind really is + you. as Home Got of Home kind it or China, seeing. in key for like now of just Beauty it in market I just guys destocking well? in like other break perspective markets, to other a that is know Beauty really Korea, if down, probably Thanks. regional that But impacted the right being And then relates like

separate me Let out. just

actually in So, personal Europe. mainly and the a bit care destocking is U.S.

the now coronavirus with the in So, on have I uncertainty which tilted want to toward China keep not what travel separate, heavily combine around and consumption it in Asia. that is we impact retail,

Got it.

you. Thank Okay.

Adam from from Our of will Josephson come KeyBanc. final line the today question

line Your is open.

that taking three for in just XQ as the have one to we ones. same -- questions. been Is has it still you should $X.XX in the years much assume unrelated goes my nitty-gritty Bob, case away options past? that have on a follow-up I hit expense. thereafter Thanks $X.XX so

No.

shifted In to model. stock a restricted more fact, we've

we last I year. mean stopped options issuing So,

So, no.

ratable a going will have of more We much expense out quarter-to-quarter.

Okay.

be XQ So, depressed artificially for reason. just won't that in anyway,

and And war took that last couple of was trade obviously, Okay. China. you came then Asia about if war. trade the in there's lot down and you expand specifically to look the when there's in slowed talked at And wanting when you -- years, China and the now And before a coronavirus. we Stephan, over,

the not? years ago than was Asia is you slowing unusual rather coronavirus, have much you coronavirus so going you argue item, But you get well down or and could will, did economy why, bigger do sooner you still as an to as to away and know, or it's in why three later. Now, before aspirations go if

small reason not And are overwhelming yes. Yeah. The answer that's demographics short changes. Great question. is, Thanks, the But something that The very is anecdote. Adam. a and very simple.

a kind end of boom But expect of year. much pretty China all the the overpower anything in else. demographics aside, joking Some the toward baby

so, the there. And growth is

lot over our And indexes actually Chinese Asia. will business in beauty, the look we've and change. it the that is really consumer a growth when scope that not to in Europe in beauty at And of seen then supplied you

to So, that's trends. go the change one the why last step. BTY is need the underlying growth first will step be or the where not it certainly not And and short-term will you step is. the issues, And

target. thank it. Got Stephan. margin the EBITDA Home + And Beauty you, just on And one last one

You you're I maybe lay target. fair target hit I I in don't it not much that hit you that to case. to is, of of the said, capital that that to But somehow. are to to know spend bit guess, is hit best going have some target way extent the you need my a mean cash that to use going question to how cash will out

lot how cash So, do particularly not that investment? you hitting about spend think target a getting do good of that to on return maybe it to and having versus

and on need a makes I'm certainly no look beat competitors, I other the first priority more rational since the not face capital to hand, business, Clearly, the said “Hey, were readily to and slow decisions is get the value. the shouldn't in no people. sense But humble the of see resources growth pharma does on banking reason every not -- very admit beauty are will at, and say, growth, going business that beauty myself On to was that again. we or be more that there. certainly we rates create growth business, why decisions.” corner competitive we the prolonged create it we the look of those transaction irrational at will we the we allocation of my make and in Look, get wanting I growing attractiveness period and I Yeah. investment going if to But performance value? for side. when I and do I'm this, cost are

Stephan. Good much, luck. so Thanks

Thank you.

to like Mr. to closing back call Tanda I comments. now the would over turn for

us. Thanks joining everybody for

to forward road. see you the Looking on

call. Ladies for this Thank participating. and concludes gentlemen, conference today's you

You may now disconnect.