AptarGroup (ATR) 19 Feb 212020 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Aptar’s 2020 Fourth Quarter 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

everyone I’d listening on like you. joining to to webcast. everyone Thank and welcome us today the the call

CEO; call CFO. and Tanda, on Vice are me Kuhn, Executive today’s President Joining and and Bob President Stephan

and press our release been to slide accompanying Our have deck posted website.

left. over along on and screen clicking the arrows following on can are presentation website, you you the the advance right and on the If the slides by hovering on

replay of statements. As conference will call conference our like always, to post a from we call Stephan. that forward-looking to we the over differ on some SEC factors what now Today’s to results are Please this turn website. cause review also call to actual discussing the could materially would filings today. includes to refer I

good and today. us families Thank everyone. you, I are and Matt, safe. staying you hope and you We your appreciate joining healthy morning, that

proud to the products on vital that are and throughout products for to we innovative transforming ideas year are consumer thank readily on solutions living their everyday resilience, Before people customers, to dispense that of Aptar, of the society, with would to society. role mainly medicines the to moment tremendous we our in for and business to improve lives, to day. up teams At and promises and the like a our facing our commitment focused take for and to strength to available purpose I deliver to partners. people page into X Company’s and recognize we ensure are responsibility critical each to patients, our millions presented made speak our want on turn slide and we challenges XXXX, consumers unwavering I the

well-positioned continue in and to grow invest We XXXX. are to

XX years the long-term return to the shareholders and to our and our is total total continued journey the manage In XXXX, past achieved story, growth compounding for over Aptar’s or and now years. beyond. growth next XXX% Turning we business over that five X, steady, strong slide return TSR X we how shareholder well shareholder

Our to weaknesses markets, and beauty us certain resilient mainly helped be economic market. proved diversified the and challenges, temporary in pandemic the overcome business to significant

strategic medicines. the as that bolster capacity our And capabilities. the We also made or year such components add FusionPKG acquiring to injected M&A active critical were during pumps, turnkey investments will we areas and lotion front, key on go-to-market to

further partners invested we portfolio. our as Sonmol such strengthen healthcare with addition, in solutions In selected to developing connected

segment, acquisitions, our balance are in sheet contributions performance opportunities. we M&A to for on operations from achieved pleased sales year, performance Pharma at am core of containment positioned strategic the X% improvements. and and cash prior to with the capital working I through free that of record cost remains reported our recent well excellent our increased basis year. continue flow and and record cash sales pursue we strong accretive cash combination the in efforts the from Looking a were comparative line Further, our flow condition,

turning who more shown element will go report consecutive XXth compounding was Bob will of happy of our X, XXXX, our I’m as story over that increased year And program. slide is into to paying key on This comment it our $XX Another returned growth dividend. dividend shareholders. to to results we QX on I million in before our briefly detail.

as divisions, urgent I sales we our acquisitions drove the with In everyday of food of segment, Food a by our pleased in delivery fourth segments. core Pharma related the with Beverage dispensing In on double-digit finish needs a delivered with and that devices and supply sales with pandemic. increases demand Broad-based our industry-leading engage while to continue and our top core Pharma across critical and X% the closures recent teams food earning X%, for for closures quarter strong to strong drug Pharma Our in and helped Food that. beverage further year growth for customers restocking devices certain in some our more customers we for to Beverage steady growth segment, demand fighting sense, diverse our and quarter. am

the top-line continued demand have it systems lower dispensing and tooling positive We and sanitizers been our double-digit cleaners. core care achieved growth Beauty compared used for in prior progress not personal sales strong for core Home Our home applications for segment on growth, sales to would posted had and make our to custom year. and care

beauty saw a prior products. still also the considerably offset partially dispensers year. We The sales for were was skincare business sales in fragrance gradual decline the increased the though improvement facial fragrance market, by of in behind

in fields implemented application have related three and planned past believe Asia will strategies, fast in over the implementing We position and for years, commercial successfully our the transformation of the capabilities future that majority expand the reducing costs our growing vast and initiatives to new profitability. segment we adding including growth

global by decline our the beauty initiatives be business. to somewhat year resulted the end to that delayed, including the in the U.S., in pandemic and has in of a expected caused facilities planned of XXXX several COVID-XX two the were However, significant be closure completed

which behavior, gradual expect proven initiatives is growth including of and be the correlated return pandemic, committed sporadic earnings to-date continues than segment to more remain be our has nonlinear. highly And by caused to and transformation profitable, We has normal expected operating our uncertain. to any the disruption to from the market offset completing our While costs to high this transformation. be remaining growth travel, return and including and to post-pandemic Beauty the Home consumer in

efforts invest to support X,XXX and over our We development patents. continue in patent of to growing portfolio research active

found supply Cool Vicks helped regeneration. pressure new with congestion photo-active that rural delivers a received chosen announced packed a portfolio selected serums COVID-XX FDA. Our the and spray areas. mist a an Authorization piston and P&G needs to helped Emergency to like position care test Cool and Vapo results and would just rejuvenation parts test and In consumer of our capsules. we and SARS technology affordable on to skincare a to examples expanded injectables company highlight the that new that innovation X-Phase is sinus QuickVue SARS have Activ-Film leading was The test airless systems market, product. from called U.S. several France delivers recently a world. treatments Home, testing in the technology Lightinderm XX read in those are slide antigen this skin their Use nasal Corporation them. and And we the device with vaccines on of offers health Pharma, device protect in instrumentation access the for X. The solutions minutes. and recent In light to home-use our accurate we meet provide In a test COVID-XX and few I we help the have requires of In the market, Vapo urgent Quidel week in that Aptar ultrafine rapid supplemental extend launch system testing of antigen test COVID-XX Beauty that infrared developed antigen no their point-of-care with in will visually by of relief recyclable rapid regenerative school provided reloadable for

the products. cream Serum is facial technology serums was and featured Pharma range China technology is brand skincare, customized L'oréal and also great for a eye by in used Hydrating brand Infinitus. that in solution the this of Kiehl's derma Hydro-Plumping airless in for an right same for on sizes comes for our Our their This are dispensing business technology

FusionPKG control applications pouch for and its Pharma an This Bad for XX and on Beauty is paste the elastomeric our Habit. of in to Finally, In Food and line team India. packaging Beverage, design one for revolutionary turnkey within and inverted beauty our the applications flow brand, SimpliSqueeze is of in nourishing and on solutions wide Home and a recently focused well. and items used valve in technology is indie turn new coconut is new that oil by as precise featured range customers facial provided accurate

tubs Additionally, Natural the fitment, Spread the Squeeze Creamy Creamy SimpliSqueeze and are and of Squeeze to and ease a The allowing new ongoing the historically Smucker’s pouch. examples convenience in bringing great valve Aptar’s a for marketed is knife convenience that be eliminates need this of Using STANDCAP category. the Butter Pouch conversion by to package jars packaging, SimpliSqueeze Butter Solution Peanut of Jif Closure to brings and use. products have Peanut or flexible been moved with

markets the quarter, and solution, Orange America, bonded-aluminum-to-plastic food consumers. the Latin using infant and The for for brands a often by is we Aptar’s added and technology where a BAP stands is formula During is for oil new seal key Cappuccino closure package which patented Juice the powder beverage custom North for product ease our and in in needed secure technology, automotive BAP of in also used feature Tropicana's of used opening package. Valvoline's America for same major technology success provided

in of to as might at efficient often our resources pathway across A is Food segment in and a and and be sharing Home, start used to continue significant very enabling that and innovation Beauty successful Pharma scale We segments, well. growth. economies technology market more our and and Beverage

consumer many active material delivery science technology also packaging packaging. in our and opportunities and We to leverage drug see

Aptar customer synergies look we in product, across Our the business and business we successful technical expertise, strengthen made to future. continue will the along highly the to and have as model with have our manufacturing our past

as turn to to like few I additional highlights slide on Before would I over share X. Bob, the call a shown

Aptar recognized the environmental which our the rights, change XXX communities resulted around Community We our environment named website, Aptar upholding status Sustainable commitment Responsible equity ISS were America's our and sustainable Status out the by CDP investments. which both on for policies of steady climate achieving world's being new and published to Aptar Companies, assessment and Giving with one Leader. has by As and Barron's Supplier prestigious Prime for and XXX operate. the rating a also also leading Global outlines for Most we topics and A Aptar Top Most and rights, Engagement inclusion; human human the XXXX, named diversity, closed agencies Engagement ESG, social we XXXX. on in Companies in progress top ranked of in List responsibility in Newsweek of was our

we Campaign. justice. comments provide programming, remarkable on response Bob, the to our I will crisis week who to Response Aptar a women's globe and Fast partnership, with CARE's economic will over and Through defeat this poverty that earlier COVID-XX education and Vaccine that, CARE, it achieve that With additional our now Bob? empowerment announced turn efforts save we organization the Fair lives, CARE's had will results. works support Finally, campaign, around global partnered social including

will walk details translation around slide some starting I X. everyone. you, of with including sales, recent Thank morning, through of sales approximately the and Stephan, quarter acquisitions, performance, reported and good fourth and In positive our currency core increased fourth XX% the XXXX, quarter X%. rates increased effects

mentioned, of XX%. outstanding margin another growth Stephan quarter and an segment of core XX% our EBITDA As sales Pharma and adjusted had achieved

XX%, of stock by safety an at chain market increased vaccines of active central our the care our prior in sales higher components nervous from the due Core sales. sales. customers to increased mainly supply space, market, the demand medications, system market in and for the increased certain in and tooling grew Looking due market primarily potential Core health The solutions material levels to and to benefits higher due our to applications. concerns, used along and of COVID-XX, new has injectables anticipation XX%, the increased demand sales our solutions consumer Core X%, was tooling for have contributed to to sales increase our this, growth fight core probiotics growth. year. inventory XX% injected probiotics building with in active health this medications. with of sales other for to Brexit-related prescription mentioned sales primarily Recent with the of diabetes elastomeric customers growth against increased sales articles devices for

and been have decrease our in Beauty sales sales. Core to impacted year, for fragrance adjusted would a by margin Beauty X% to lower negatively custom sales in XX% Home prior Turning beauty quarter with was EBITDA been decreased had the equal tooling it and not Home's the segment. the market. was and and

Core a due core commercial significant by sales XX% decreased growth travel market sales our XX% sales. the core XX% increased care dispensing market sales sanitizers, systems demand increased on increased to of products. beauty sales pumps reduction used to due the sales cleansing our basis, fragrance, care home products. cleaner personal soaps due personal closures market to to market and in and the a at for on higher and for retail to for disinfectant Core and household Looking

Core adjusted our grew mix sales Beverage Food segment. headwinds products. XX%, due despite X%. and resin to of EBITDA a segment’s and strong Turning margin XX% increased to Beverage of Food pass-through to

beverage sales market increased Looking sales quarters food our which for drinks at pantry or after demand the due market closures as increased on cook effect, the Core continue used restocking during used concentrates, each to sales market, increased mentioned, on to staples home as to to be core increased and appears consumers pandemic. X% volumes. dispensing several to a Stephan due of declining XX%, to functional the solutions, at

a currency onetime adjusting first year, the $X.XX Thank of cover year-to-date the appreciation share in X. the slide X% on half Turning basis direct a few adjusting You year. over and Slides the decreased reflecting $X.XX per decreased equal XX earnings Adjusted a share Thank Core and our and currency earnings sales and Adjusted during first the XX for a to prior increased per including the were despite outlook outlines to a X%, adjusted Slide indirect for the to XX performance on and comparable the of for related the Fourth I'd slightly, to challenging including to expense comparable impacts the our with EBITDA of with this to pandemic Award. basis little year, quarter. effects including quarter $X points. year, million like Employee highlight effects. includes approximately prior pandemic. per for share Award an efforts year, their X% share employees per to given You the prior

and expect material a anticipated and we our in prescription and to markets. Pharma discussed, consumer in active effect our weakness solutions healthcare with have in injectables Stephan mix As strength components

quarter range adjusted year currency to it adjusting the Beauty our pressure on share expect segment costs. $X.XX earnings first beauty raw Home compares addition effects. to to expected in and up, quarter be our per rising the have material first this business, negative In Summing share when prior the from to to $X.XX a and fragrance is impact per we $X.XX for in

is the potential too still While we is severe the effects of it for assess monitoring any Texas impact. and weather still to unfolding costs, material early in raw are us

three that expenditures projects our to to to few growth excited the share that There in and for details we envelope. Turning would are XX. to like like Slide I'd get a underway are around our spending forecasted are to three capital and year highlight. I important projects addition normal capital

and we've lot see significant a part business. stable our opportunities injected First, our is growth This future supply medicines. for a chain potential very spoken injectables about important in in recent and we playing role of a critical the Aptar the

of in over completed in to fast-growing cash this increase expand project to This XXXX XXXX and begin We will is make that our strategy we to with automation be expected begin the roof. segments. the will completed A Pharma in machinery in be the XXXX and $XX the XXXX. investment injectables is cash XXXX. state-of-the-art Suzhou pulling in U.S. footprint facility forward other our million. operations will had China one capabilities XXXX is The This make $XX predominantly Investments outlay begin planned and for and This investment and second a expansion and is in five optimize investments expected our phase capacity also our in to in also in France of XXXX for includes and all area this for being our years capacity important market. in million. new our we that next will made bring The focused Chinese the and aligns presence be growth in outlay on existing under Suzhou,

We for market. creating decorative and in optimizing capabilities France of footprint also highly a excellence are beauty our our center the for valued

past in will large to that our have The in begin efficiency of will capacity will were facilities before and to expenditures This for several of we above roughly XXXX be advantage, we Including competitive and customers move decision. $XX our a the expected to operating the add closing roof beauty XXXX. in At capital $XX this and XXXX of will $XXX to also million. recent these Stephan under this This few are outlay very one supportive we our XXXX many million. provide project cash been be for our completed projecting efficiently range upgrade in is have Q&A. We time, aim in the million, million $XXX that not and comments this activities.

XX, you, growth our quarter and slide and Bob. characteristics good diversified strong we business, on a Thank fourth year innovation. to In product continued our in of investment portfolio due technology had a closing, and the

in environment. Importantly, operations cash performed flow and record a our the with business record very market great difficult resiliency We for generated free year. flow cash from

As mentioned, XXXX, shareholders. will capital to to while we we return growth in be investments continue significant making Bob

As received to our efforts additional flu doctor consumer a our Clearly, make certain prescription ago. we and economic we markets beauty to company. only are the pandemic-related beverage compared and The a noncritical increased fewer and and all be and inclusive an visits. thought delayed several inventories recognition from to confinements drawdown reopening is continue drug illnesses the of work and recovery fewer the quarter we to experiencing to-date, customers due commitments resulting somewhat under and what Aptar a healthcare for pace more even company, pressure of and by sustainable, have pandemic ESG and from organizations by diverse, cold

concerned with were potential safety customers Some build chain they Brexit-related disruptions. also as stock supply

dispensing active and sanitizers, in growth injectables Pharma solid food cleaners components, continued systems material for expect and Pharma our solutions We products.

and is pipelines. project our strong unchanged, long-term on innovation and mid view based customer positive Our

encouraged steps are are ways we invest fact, us taking growth better position the capacity era. in post-pandemic in and that working new and will In to of significant even

which excellent global forward the benefit to all open Our the in us call opportunities. to crisis, that, is of is would up of stakeholders. When balance we allows businesses like promising, we future the I past strategic of long-term questions. growing for condition, look sheet pandemic-induced this take raise our for our With advantage sites and each to

Please first Your comes William John Instructions] Kreger with Blair. [Operator ahead. question from go

like have injectable your year on bit of Hi. much. expand expansion. maybe that orders some a But, satisfy to room Stephan, Thanks you capacity the sounds very COVID-related comes do you can accelerating on It comments? some little capacity before you're line? this

we've response John, yes, supply proving in be we're we to terms expenditures chain was five We capital in is this very that had everybody years, forward area. plans betted thank doing you. Yes, about next indeed, we over in been what that frenzy. future. as the growth by encouraged And really anticipating every customer capabilities continued of talked technical this reason the have previously to the optimistic our pulling

forward we're years we So, bringing past. in made But, capital the the investments have capital investments. only

search growth requirements. our of is roughly have the fulfill fourth now that has vaccine clearly, chain. XX% including of to capacity current to quarter, actively capacity, the we And and in COVID-related the business, So, majority the supply supplying been the due

as you. COVID sustainable sort over you your more Great. will a next treating of sort planning the are few one-time fade durable Thank years? that of bolus orders of a or and of In kind process, the

broader record both. the mean, many vaccine have for a I to really of number be will the general that our as we and And capability that for in traditional large as technical it's bodes No, are well of supply same a at as vaccines vaccine the treatments molecule recognition new of as this experts of probably been at itself on of least our well drugs, the in injected. adopted most that of flu seasonal biotech, strains. time, a believe the recurring years, mix is customers the

to one before retail get for back that sort eventually come just can have Great. Thanks. patterns back? this that you on of the travel where of question Do And probably you beauty. or to then, a to wait quick normal, recover is these think business

business. course, of it's homogeneous Well, not monolithic a

Clearly, that driven of to physical much from parts for although to gear China, by by with travel starting business is the there are some of sanitizing. been luxury are a the already encouragement back doing customers, course, let's people this very bode and business. fragrance the resumes. back. will well, expect travel was, customers everything what as China are travel has obviously, is all. will that of do business there certainly, have retail, And the But, have as We wait in comeback of has to skincare. will that say, travel as We're not encouraged cleaning, well leads intentions so reopening now fragrances growth that they pent-up and they consumers indeed to and large anecdotally, that temporary resume snapback soon that. as way, coming as snap But, that soon very to Clearly, hear by speak. for can new we that at retail to kind and normal, and

next Securities. with Your go of from George comes America Bank ahead. question Please Staphos

Good able are that new to to everyone. how investors market the Matt. you think of solutions? the and share getting for details. inform doing injectable at I any that there injectables, you Stephan, My quarter packaging think and in market been new or legacy be least start on the more, in of gaining Are share? hope you by the share of of I you not your It's on morning, quarter it's you Hi, within mean, and your if perhaps all out requiring assess and share, related would you're COVID specifically And congratulations losing you’re particularly bring Thanks not the vaccine is well, story a market the do products sectors the or question of analysts you're on all then, -- progress. quarter. terms that market by Aptar. given Bob, products at progress, that Company, the where

of the comfortable to our feel question, the spoken least injectable George. in share space. we're part I've second getting Thanks, that yes, that Starting Good Yes. fair the previously. morning. at we with

to In our customers market built whole inquiries, the promising. has being terms fact, book, technically as I the think, of helped equivalent project the not order very And in the only is business the pandemic leader. recognized by but

bit very that than So, confident injectable our the share, I that we more a space. fair even in get feel maybe

market In really product share, a question, to terms set, each and your larger to of harder our that's much question is it's quite platform. disposed competitive answer segment

We the our we are course, highly encouraged, solutions. are making with material progress active of

of We the encouraged well. with care with are footprint and to highly a solutions should sure more Rome we're you turnkey which down day, developing customers faster, the the is. built Asia, progress our we're making accommodates wasn't rapid FusionPKG, more in there. we if moving are from the with where growth is but me, to ask Pivot that, making more and growth And but certainly, busy chain coming skin value and very is in be certainly serving

there. it leave me Let

term. and broadly My Stephan. near margin Thanks, other to on is longer question term Okay. then profitability and

would way is the world at we tack and past with, about profit do and normal, get generation? So, this I'm the first have business back And the COVID transformation can we didn't business million the point, been changed has hadn't perhaps you and And a in still on obviously, destocking here, profitability when roughly asking, you $XX could there we in of Beauty then, benefits for a that EBIT the coming, and guidance the look and impact in some your resin Home, the think view? or terms stretching quarter? effect if start that to have we your to your have is bit to $XXX quantify had do what million, million $XX of at reason

take the me of Bob part the the Let question, address can and maybe part second of the first question.

cleaning, of have set big on scope was so especially clearly, do transformation, part And have accomplished scope profitability users as to advantaged target out the look not quite actually more through to plan. the went to footprint on, more happy COVID at and the the rationalization close already some are of and the that I'm what a by And the we we projects. on for we even levels expanded getting the we've with date, are When we So, it. range. end sanitizing

don't EBITDA there. me So, XX% and range that tells volume that needs actions, to have and part the on then Clearly, you COVID XX% to into the that recovery this but from story. we're fully we see business our -- of build that, getting to be committed traction that

George, can of question. I first the that take part

So, in as destocking the division really the coming health is consumer primarily we highlighted, division care. C and from Pharma side prescription the the

two within you Pharma as are margin know segment. those, So, in our divisions highest inside -- -- Pharma the

So, bake material divisions the we fact active on because growth amongst see still in and little bit did good solutions. a injectables we again

bit Now, the in other in -- ramp-up little a is the injectables happens in oftentimes things, saw and we QX.

spiking, have are included additional have right, additional expenses you some having up as cost starts overtime, there. volume you some the end additional that You

then, this in the what effect those sold in did due So, a effect we of of And to additional on some see, year, negative also mix injectables is active bit the there's a margin QX within packaging, in quarter. little costs.

QX. give effect we mix are resin really as we more into America as bit not at mix Europe. seeing But, number an North And QX, goes, in little QX. spiking lot of We're and resin both in you of directionally. unfavorable a a of least in it far up had then, effect in terms So, a I baking can't specific

America saw the against euro has it strengthened from the QX North in in the coming we So happened only -- considerably far, we increase the past, because didn't dollar.

for seeing So, But, we both, rising it's costs somewhat Europe North neutralized any America in resin are QX. in cost. and increase

on effects bake that our any though storms you we did from negative still early margin the in too have did Texas. impact come to that some tell we I it when in put in So, there. was estimates, may down will

actively have at looking and that any will that So, see if impact. we're now additional

So, baked we both divisions.

Bob, I us? Good $XX luck million, thanks the mean million, anything in to $X guide before guys. just $X quarter. million, And storms,

because doing right fingertips have don't the really segment the in I customers. which my is it's the exactly pass-through, quarter, at Yes. each depending volumes on what

whole that host a there. there's additional in of factors go So,

next Your Baird. Panjabi from ahead. with comes question Ghansham Please go

growth? with comparisons is cetera. when with strong various was referenced a guess, unit and for I destock sticking subsegments you're going I your prescription you quarter if off, first So, for on And in going so lot Rx first of years from OTC, then, to will, et three effect, the mean, particularly really certain sort year with injectable you the just Pharma. there the that drugs, in a stocking within have operating last the there

So, of is, get XXXX. kind on us broadly of in versus be trying as as more to I'm we're I XXXX apart sense will to a just from guess, sub-segments the take the can whether year think And grow basis, going you in to normalization a year-over-year of actually you sort for question which through, a injectables? about XXXX, pharmaceuticals

agree the hindsight Clearly, Ghansham. it effect bullish remain obvious, is flu Thanks, on Clearly, is on XXXX. this seems course, hindsight, nonexistent. Pharma Company. the season over but in very CHC, of bullish business, Overall, and the Rx destocking almost and for

have get they consumers the that they don't around. and So, trade the been take stuff don't sure people stocked, measures to protective get are don't with -- all sure the They against get stocked wanted the consumers their while they our is bronchitis, customers cold, flu. COVID, make themselves have making

in transitory. speak consequence, grow We year, is full a no So, the believe Pharma flu in there destocking it's first half. than half to this well will but of, no to second is more the obviously, for the continue now cold that logical and

will end do very to year and be material continue maybe look is will also but XX% Injectables solutions the to early. range, we that growth. at but We I believe good And But, back. range, Rx at clearly, our come that see to lower range. and continue we the well, active of X% very inside will CHC

Okay. Got for I correct. if fragrance piece, I beauty notes it. And think then, and the mean, are my

year-over-year in and starting into in of actually have customers so about were XQ. XQ the You suppliers and year-over-year, XX% basis, XX% on talked normalization A a forth, down down so sell and customers, your higher on your XQ. lot that in a IFF

clarify our comps the also for the segment you fully 'XX, first effect comments -- from can -- still then, And based that. your quarter about your seen haven't from COVID, X% on the you why seeing when first numbers? down were quarter that wondering not Just

Yes.

So, of a the things. One recovery. customers couple clearly, tasting are is,

customer discussions, a comes the of pipeline, industry. it So, there's to in customer when planning, optimism projects, lot

kind see overexposure luxury have coloring We But which is already in skincare. growing. to good like trailing. to luxury We comments. But is are in better fragrances, our growth is still are still also again, fragrance an overexposure our luxury places Mass of fragrances Brazil trailing. fragrances doing

second the part question. forgot your Sorry, of I

answer can it. I

Go ahead.

answer of can second I part question. the the

of if into QX, remember, of you side in all we business. destocking beginning Ghansham, of back care in personal a end the So, on QX, the were QX phase and

doing still was beauty So, relatively well.

in didn't size that region a weaker in Year quarter, would in because the So, a was of period. of our end QX. and you personal more compared March, every that normalized, very so we there. China the we QX. QX, And It so care, only there, saw QX when first a full-blown quarter, far impacted got was like the I little at year, say, and QX on you was our primarily Chinese the negligible also it on impact see significant. it the is quarter, into end the significant And results. Europe, weight as did but right, have of we And tail any as not were finish have, tail Really, to was destocking holiday then, effect very New to

comes Wilde Your Mark with BMO Please next ahead. question go Markets. from Capital

can you if thinking you commitment on the us three capital wondered in outlined. total I initiatives help about those just Bob,

million total and but the CapEx does look where does this what of You three be sort in for $XX And rough will year, like projects? those the that of for gave what 'XX? all on Company a of into for the number thought translate us help 'XX for

Great Mark. Okay. question,

million at in looking with if total. So, at look about I projects, injectables a the starting $XX the three total we're expansion, really of

less project half spent for bit of than And the in little a next XXXX. continue then, couple will the years. So,

about million, we're to end French remainder $XX going or about spending should is spend we're the facility, XXXX. in that -- of XXXX. $XX million, I would the that that's roughly see half and then, total million, China decorating total spent a as be of And XXXX. investment. facility, the cost The mentioned, at of million million the completed we in that $XX On And $XX that $XX about

be the So, addressed to the of in in more I sector and normal the like of mentioning we've for then, general French expansion was ongoing and Stephan projects. and facility, just need look category. plant decorating expect would the really here, China at savings basis. specific is terms annualized the XXX on if And what XXX, three I these injectable consolidations. would in our tied to of you say, CapEx we growth net those much, kind an as growth are efficiency, type And a the vaccines range then, said that cost

of sit it. would on Which top

$XXX So, million, range. 'XX little in over million like Is for a sounds CapEx it that $XXX probably is your fair? the

job that again that as all in ballpark, we've mean, Mark. And really bit I again, and put terrific improvement. out you've to little an going in more some We think to what a I increase on squeeze to help we're Yes, do seen well XXXX. and emphasis And of working much focus really that's three tried yes. the in across payables. we a did offset a XXXX I additional And as of inventory as that capital focus is can. in AR think,

capital trying of focusing, improvements. So, with spend some extra we're working really continued to those offset

China, you just just in if protecting talked expanding And think and during particularly, of you presentation about your Asia the can patents for final at curious, the Company. if my you the Okay. intellectual about expanding you in about generally then, talk Stephan, property? Pharma X,XXX think I'm about business one, sort

intellectual me in Europe. Sure. property has stronger with U.S. to as lot China a from Look, ways maybe came protecting last the and three intellectual become around it. let start challenges properties we enforcing a company had the

practices. major or at we would following anywhere protecting of else. so, not of in our and other -- and file how and the person we everything. any single to same do countries than I secrets China any secrets are And terms document filing look differently than compartmentalizing no we do no secret So, for IP, trade knowledge, recipe We we has go trade different will about the

with Kyle Bank. Instructions] from ahead. Your next [Operator question Please Deutsche White comes go

bit wanted on I focus to Pharma. a

to First, makes your you, kind products which of just be prescribed of prescriptions the telemedicine, for looks and to a be opportunity broader to not Is top jobs really would that this or prescription drugs accessible seeing an telehealth? are more question. everyone. widespread the exposed over We're rise

your conditions clearly the Well, it good found branded not But, I'm more sure be prescriptions, when prescription more with data. about new getting speculating diagnosing maintaining I'm here. I actually noncritical over GP got comes that and and rolling to down. connection your new we've telehealth and that to is

down. we at doctor, go So are you see a a time, pharma in-person That prescriptions you the just classic, with doctor in than that and at hopefully, to changes. end salespeople, new into medicine. least But to branded of being all clearly, visits prescription Over being a new moment. contemporary by a brand medicine, you more telehealth better down, can a sudden, doctor's the more by up still with transitions visits bombarded that happens anecdotally that

sense. makes That Yes.

definitely Pharma. wanted focus thinking on to I margins long in the for term also And it's So, that. then,

long-term XX% XX% is the range. Your target to

range. asked below term? margins to in Typically, You're there as growing increase that at targeted longer is the might a But, risk lower fall end of if range you the that need always range this you injectables, the invest we've quarter.

No.

are million. were quarter about this of or range. write-down onetime There to items. talk some about onetime We Bob in an four $X asset committed can

we business COVID. addition, labor some from temporary had backfill in needed In injectable absenteeism the to

to the range. generally, the margin is range pressure onetime some was there right So, XX% in QX. XX% But

go comes Hajde Please Your next Fargo. with Gabe ahead. from Wells question

some take should you your interdependence appreciate a or format. kind I some to there? there if off of alternative, view and some perspective together was to Aptar versus Stephan, is or comments, else But, an appreciate we that you're that better the and of the in you And be each across what talked trying that of Company's get manufacturing discuss about segment, topic technology sharing capabilities. could of comments made the also of something public I difficult these

No, not all. at

shared. think, and Aptar that quite clearly, with footprint. I over some identical, an industrial business are a this we've international We unit talent in been bit. is cases, integrated we leverage ground technologies, almost -- operations And products,

to before things to the So, another to engines metal to to engines is of precision make I've price technology power we injection of molding, devices. because make the used but make different sells price, we sell And, assembly, do segments. high-speed jet the GE end, the same. in operations. tailor core we them operators, analogy airlines one jet course, plant

is So, interested question we -- are in all not any separations behind questions. your at large-scale there get to a

When you're to interesting let's around. or time. the we other hey, is we business is that and should Of coherent course, discuss what what we things the table forth, to we offer innovations industrial users. technologies, portfolio insights, try outsource, very pharma doing the them, And in-house, end we over will But, how move we with of can effectiveness serves bring in our and the always all beauty, customers, we that bring what the multiple it should whole look back do a this way organization? at improve we to

Well, I long to I over your think, appreciate it's And of proving point, periods talked time, we that. really successful. about TSR

So, the properties internal sends us an you should tells for the allocation to an guys obviously, evaluation that. have then, share this the relates somewhat year? signal think of And go something just it that as we Thanks. available? to just opportunistic that is of or kind or repurchase capital acquisition the a which market, carry you as thank throughout And redeployment side, lower on or those as like whether then, on you acquisition-driven more front, we anything cycle, it's programmatic or risk actually expansion. But, investment if versus curious elevated

Maybe start? should I

ahead. Go

Yes.

way the with start me and Let our work we'll backwards. last

several years -- So, I within over the XXXX. even to our allocated the is, continuing seen Pharma being see that think, portion of we've things of CapEx, one capital and a we that in that stronger last

the into larger CapEx, the Pharma for percentage allocating inside side. Company a -- we're we're So,

it the record this our we year of relates the the million, flow was to year repurchase, X.X. cash at $XXX leverage As generated share at and end

deleveraging a significant we had effect. pretty So,

the of confidence working think, cash the reduction. we've towards flow and fact suspension temporary the So, in and our made I more put to due for the capital us reason lifting the is generation efforts

when out And said we have to perfect. there's that so, actionable we continue would some Stephan are our should many times, timing there, but that optionality as even let talk lower. there push And acquisitions, be about the not even I'll exactly assets like the leverage may if

-- it's about back or it that each actively that something to generation. there. optionality indicative It's anything cash more into the flow our market we just that in not the we of in Stephan, confidence quarter. us you saying environment? more we're additional giving reading -- the piece if acquisition So, mention want That's of that want have

and are own whether to for seat, able more for or disciplined So, ability at on execute. same engine to never be and has very look, something also brings make time, M&A with to markets is active. to But, be bolt-on we being to same environment. a prospecting you've very much continue foremost, it. an previously, And it's At whether with very discussed it's our be conscious but we you complement acquisitions grow the complement an And for increase acquirers very always collaboration seen bolt-ons. can stopped business remains active we And pride we part, investments, valuations the and than a we whether venturing innovation then will machine those. But, and everyone board of rate certainly challenging and open. it's continues wide agreements. a XX, we they few proven that ourselves Company, as successful, and that to the take our license, execute, it walk be at most need the the the first certainly our and with we work like And It debt organic us away complement to time, M&A look growth. are you deals

invest fully each a So, having technology these really without investments us give in advancement. to and front venture seat row of area every

Josephson next comes with KeyBanc. Adam from Please go Your question ahead.

that earnings are and made progression seasonal release lowest, in you a the presentation, just improvement. quarter for reasons. year, typically normal progressive in would fleshing you Bob, fourth quarter the first know, comment the mind out expect you and I the

than I'm how just that offset So, year demand than out just these to offset be play by much differently expect will year? or this this different wondering more normal. And those you seasonal expecting factors you're patterns

Sure.

you as years than what give last actually correct performance you're higher than the anything not that related backend So, seen to We each look couple see we you than because, in And But, QX if though and know, what you specifics going it, it’s is at and stronger I'm have quite guidance. then of the that quarter-by-quarter don't the on else. COVID say, probably I give half some continuing what QX. trend annual QX we've and is seen first more softer we like usually, said, honestly. QX

from we to a good -- the budget up XXXX the in in the do bump year. So, way our split of see we the QX remainder pretty

continued see we'll we're ballpark. in see increase looking QX. then to increase And a in obviously, QX where then we'll QX, for in an but at right net similar So, our QX

to And be that just not regard, year-over-year? clear, you're talking in EPS the Bob, absolute

That's correct. I'm talking absolutely.

Yes.

is the are, that conclusion doing don't having separation about together businesses cons some looked just these when if, intend industrial -- possibly what you've -- businesses, even you of is split et industrial of questions, together in to and I'm in the wondering something not that advantages Stephan, see seriously? your that mentioned these Okay. though That's and Gabe's one you do doing the and share in said -- about powerful have back you you just to to the terrific. is the so, from acknowledging so? that is mind, separation logic earlier keeping into And fact, And businesses just technology, of if you just sufficiently the you the logic call any talk cetera. Can your pros know of there a worthwhile? I and potential

Yes.

basis, external a through Of we planning look, on the an assessment annual advisors. plan review with we exercise including strategic Board, that by course, go and

Board takes also it and plan, the the seriously and at valuation So, That's responsibility. of at the the Board alternatives. their responsibility very looks looks

compounding plan that in for the So, achieve very generate term, there base the trend exposed very of think the built the our a are about are there for long-term that with have. company been and feel we investors have that we the investor reason users to the long growth. value Most macro good we that will we for happy And much end them being advantaged long-term stock very with creation that interested the We're out more in. and that. we

best to But, talk talk investors more more. more. the to We long-term answer our investors we is We to also So, consumer And that care more. with Yes. absolutely that's talk investors is for shareholders. agree to of question your very there -- And health plan holders we why more. and that. this international talk is investors most to believe the we ESG-related much

not value that's Just Home and some follow-up lost the it's think gets you this has happening? think degree business one different characteristics, necessarily Do Pharma that do Beauty because combined very, fact of to you that, in with to that very to or that the Stephan.

and term, and the term. long can And build In multiple the that manage of the the XX value stronger multiple a with but always multiple do and you the valuations current is Company life, multiples nutrition previous get result I strong addition. is short dislocated, as the from The addition much that the in and the always that the the still objective, been It's over but create. took term. are polyolefin long that years an there. moved company to the you multiple made things to a multiple follows the company it don't points, have not and of is multiple moment many it a what is the there you a for the for at Well, In be company time, what you might short term result. XX

and end the users the multiple within operation. compounding make formula So, exposure the it that is the attractive long-term industrial to nature coherent

So, I'm a the naïve objective the that not could running for Company you of the term. long But, pop. get short-term that's not

Your next Kumar go Neel question Please ahead. with from Stanley. comes Morgan

timing, two of new you like be the could the project U.S. the you of characterize two-year relative potential capacity And completed extended three-year to project XXXX, more normal? in the typical it current of your terms of your magnitude and Would give seems the and injectable XXXX. in increase sense -- capacity won't until return? us or out terms to France, duration a of then, is the In to

you when Pharma is about this very project, normal. Well, think

being but this the side Then of capacity. the part additional differentiated of the build, the business small validation validation So, the part. systems, lot building and quality that that's goes physical actually the there's but not highly only equipment, is customers, it's a flip with qualifying of into defensible,

quite So, is this normal.

increase? And just the of in of terms the magnitude

what... sure not I'm

three years, in two XX% to probably about capacity downstream. capacity downstream adding is we're roughly, mean, to I which additional Yes. XX%

Okay. of update That's in been can of helpful. And give been How the Company how progressing an type the performing has on integration to just your environment? expectations? this I'm wondering if you has FusionPKG relative just

Yes.

the performing. make. to we're linkages satisfied see very combined inside Customers the how you Aptar, able agile capability new to team to and from combined statement, excited have are As our of we adjust of been and FusionPKG offerings have is with about the FusionPKG environment. They very been the extremely

acquisition performance. great good So, and

from Please comes Tiano with Global. question Seaport next Your Salvator ahead. go

question, that clarify to EBIT years? I number entire to if also, expect a with return the also benefit few for growth in injectables provide So, overall? you million these what for Neel’s of on investing segment guess regard for the XX% kind there of up I this the $XX the good just XX% on see? some is project, kind following or EBITDA Firstly, you're clarity the to and guess you Pharma after comment And you can that can or about year, that investments? the Is next

take to want you that? do Bob,

start Yes. one I'll last to the with. take

was business, components not at the And XX% capacity a for injectables the additional the process. other is So, to all. XX% specifically multistage again, injectable downstream segments

and is mixing additional at drying whether the volumes or it's And so, capacity washing stages, and the line. then there always finishing the increase, investment as the upfront various and the

other certain capacity components So, adding XX% manufacture, of does but just not of divisions. this a is kind for really the total impact we Pharma that XX% to

potential the earnings on return these Sorry. And on investments?

But mean, being anything to a a so hurdle now, sense are. Sure. world, hang lot certainly, pretty but we right a my where return. want makes our really the good rates I And it's it above investment, much projections I will -- it's to definitely going return be hat in don't the obviously, of on on be it positive. that a have, positive pharma investment,

you not I with Okay. trends seems masks some a hands lastly, are And consumer quickly very potentially guess in distancing I season Because healthcare there, -- could prescription. after will their the more, like pre-COVID mute people will we post-COVID? demand see things on same it that guess? of How little the bit more years, wearing do there see chance few not washing and social a even lifted. return Is the flu the any restrictions the

Yes.

speculate on early that. I think to too it's

will was portfolio, some from to creature and growth we flus. a Having for the broader CNS that, are travel We habit. quarter again of environment and you strong think saw a have the I And of mingle said people and colds want it actually in course, certainly category. all and be get that also again, of four, good out

quarters of netting of looking that to I out out. the all until and all couple be sort a of once say in are make, of environment, reopening, one worked button. a to basic all regions. economy is how at pipeline take of to there's suppliers. lot are This hopefully, is as wanted But, full stop. many are, gone now, feedback, we until COVID just And area, be quarters effect many also it economy very couple think, between the of on we -- I customer balances still of a bullish to that like things not the course, -- we will Pharma. from things growth the overall, comment parts dislocation and of So need it's in the push a in it's -- availability a of containers have are available we to new to to shipping that the Maybe There ship the off continue out many fair

economy But, hit some have been that larger will bumps. kept the our blessed have We operations running.

many followed story restart be stories chips will have because all been an There economy of those a the quarters with push you for and You automakers. that's more button. just don't three paused

Gabe Your with question comes Hajde ahead. go Wells next Please from Fargo.

all the in in landscape that past, you and are behavior, lifts volumes Home is we XX one Home, Beauty if can anything quick in Can landscape have that positive. comment maybe on Just trade I Beauty of the deals on months and better transacting be when that the see businesses that you sometimes more some of in one you know, the doing your so disruptive care fact or and at But, there's of there maybe kind been channels just don't personal competitive specifically, side. bit potentially in a appreciating hear kind just big competitive little fragrance, through eyebrow terms two business? change because

Not really.

-- these they popular lot. and have hands Assets with assets quite are sponsors, changed a

absorbed a All dynamics, competitive change which I maybe responsible. the is really one get a at right. to But But, they more transactions have competitive by strategics, in involved, get strategic bit talked haven't you becomes seen dynamics Sometimes least of not a about. the overall, changed.

as I you interest. for thank is your we much And over time. that, this being I about as can with all think, do

on you Looking the details forward dig interactions into see and call. more to to next virtual the

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

now may You disconnect.