AptarGroup, Inc. ATR reported fourth-quarter 2023 adjusted earnings per share of $1.21, beating the Zacks Consensus Estimate of $1.12. The bottom line increased 27% from 95 cents (including comparable exchange rates) reported in the year-ago quarter.

On a reported basis, earnings per share were 93 cents compared with the year-ago quarter’s 89 cents.

Total revenues increased 5.3% year over year to $838 million in the reported quarter. The top line surpassed the Zacks Consensus Estimate of $832 million. Core sales, excluding currency and acquisition effects, improved 2% year over year.

AptarGroup, Inc. Price, Consensus and EPS Surprise

 

AptarGroup, Inc. price-consensus-eps-surprise-chart | AptarGroup, Inc. Quote

Operational Update

Cost of sales increased 1.1% year over year to $526 million. Gross profit increased 13.3% year over year to $313 million. The gross margin was 37.2% in the reported quarter compared with the prior-year quarter’s 34.6%.

Selling, research, development and administrative expenses rose 8.1% year over year to $138 million. Adjusted operating income increased 31% year over year to $115 million. The adjusted operating margin was 13.7% in the reported quarter, up from the year-ago quarter’s 11%. Adjusted EBITDA increased 22.3% year over year to $179 million in the fourth quarter.

Segmental Performance

Total revenues in the Pharma segment increased 14.9% year over year to $385 million. The reported figure topped our estimate of $365 million. Adjusted operating income in the quarter fell 3.7% year over year to $103 million. We predicted a quarterly adjusted operating income of $93 million.

Total revenues in the Beauty segment fell 1.7% year over year to $288 million. Our estimate for the segment’s revenues was $313 million. Operating income improved 7.2% year over year to $21 million in the fourth quarter. The reported figure topped our operating income prediction of $19 million.

Total revenues in the Closures segment decreased 1.4% year over year to $166 million. We estimated revenues of $156 million for the quarter. Operating income was $8.3 million in fourth-quarter 2023, up from the $3.7 million reported in the year-ago quarter. Our prediction for the quarter was $10.3 million.

Financial Performance

AptarGroup reported cash and cash equivalents of $224 million as of Dec 31, 2023, up from $142 million as of Dec 31, 2022. The company generated $575 million of cash flow from operations in 2023 compared with $479 million in the last year.

2023 Results

AptarGroup’s adjusted earnings per share improved 24% year over year to $4.78 in 2023 (including comparable exchange rates). The figure beat the Zacks Consensus Estimate of $4.68.

Including one-time items, the company delivered earnings per share of $4.25 in 2023 compared with $3.59 in 2022. Sales rose 5% year over year to $3.49 billion, surpassing the Zacks Consensus Estimate of $3.47 billion. The upside was driven by a favorable product mix, volume growth and pricing.