AptarGroup, Inc. has recently released its 10-Q report, providing detailed insights into its financial performance for the first three months of 2024. AptarGroup, Inc. operates through three segments: Aptar Pharma, Aptar Beauty, and Aptar Closures, offering a wide range of drug delivery, consumer product dispensing, and active material science solutions and services across various markets.
In the first three months of 2024, AptarGroup, Inc. reported a 6% increase in net sales, reaching $915.4 million compared to $860.1 million in the same period in 2023. The company attributed this growth to improved volumes and product mix, with all three segments contributing to the increase. Specifically, the Aptar Pharma segment led the growth, with a 14% increase in reported net sales, followed by Aptar Closures with a 2% increase, while Aptar Beauty segment reported flat net sales.
The cost of sales as a percentage of net sales decreased to 63.7% in the first three months of 2024, compared to 64.8% in the same period in 2023, primarily due to an improved mix of higher-margin Pharma products and cost management initiatives. Additionally, selling, research & development, and administrative expenses increased by $4.9 million to $152.8 million in the first three months of 2024, mainly due to higher compensation costs and incremental costs related to acquisitions.
Depreciation and amortization expenses increased by approximately $5.1 million to $64.3 million in the first three months of 2024 compared to the same period a year ago, primarily due to higher internal capital investments. The company also recognized $3.5 million of restructuring costs related to its initiative to better leverage its fixed cost base through growth and cost reduction measures.
AptarGroup, Inc. reported an operating income of $112.1 million for the first three months of 2024, representing an increase of approximately $28.1 million compared to the same period in 2023. The company also reported a net income attributable to AptarGroup, Inc. of $83.1 million for the first three months of 2024, compared to $54.8 million in the same period in 2023.
The Aptar Pharma segment reported a 14% increase in net sales and a 32.5% Adjusted EBITDA margin, driven by strong core sales growth across all divisions. The Aptar Beauty segment reported a slight increase in net sales and an 11% increase in Adjusted EBITDA, with an improved Adjusted EBITDA margin of 12.6%. The Aptar Closures segment reported a 2% increase in net sales and a 15.0% Adjusted EBITDA margin for the first three months of 2024.
As a result of these announcements, the company's shares have moved 2.4% on the market, and are now trading at a price of $143.52. Check out the company's full 10-Q submission here.
