AptarGroup Inc (ATR) Reports 55% Increase in Net Income for Q3 2023
AptarGroup Inc (NYSE:ATR) reported a 55% increase in net income for Q3 2023, amounting to $84 million.
The company's reported sales increased by 7%, with core sales, excluding currency and acquisition effects, rising by 2%.
Strong operational performance was driven by the growth of the companys proprietary drug delivery systems and sales from prestige and mass fragrance dispensing devices.
Adjusted EBITDA of $193 million increased 26% from the prior year.
On October 25, 2023, AptarGroup Inc (NYSE:ATR), a global leader in drug and consumer product dosing, dispensing, and protection technologies, released its third-quarter earnings report. The company reported strong operational performance driven by the continued growth of its proprietary drug delivery systems. Sales from prestige and mass fragrance dispensing devices also contributed positively to the results.
Financial Highlights
AptarGroup Inc (NYSE:ATR) reported a net income of $84 million for the quarter, a 55% increase over the prior year. Reported sales increased by 7% and core sales, excluding currency and acquisition effects, increased by 2%. The company's adjusted EBITDA of $193 million increased 26% from the prior year. The company's cash flow from operations was $173 million and free cash flow was $97 million, up from $55 million in 2022, a 76% increase.
Segment Performance
Aptar Pharmas performance was driven by strong double-digit core sales growth for proprietary drug delivery systems used for various therapeutic applications. Aptar Beautys core sales growth was driven by ongoing strength in beauty dispensing solutions for prestige and mass fragrance. Core sales for the Aptar Closures segment declined compared with the prior years quarter driven by pass-throughs of lower resin costs, as well as lower product sales.
Year-To-Date Results
For the nine months ended September 30, 2023, reported sales increased 5% to $2.65 billion compared to $2.53 billion in the prior year. Core sales, excluding the impact from changes in currency exchange rates and acquisitions, increased 3%. Aptars reported earnings per share were $3.32, an increase of 23%, compared to $2.70 reported a year ago.
Outlook
Looking ahead, AptarGroup Inc (NYSE:ATR) anticipates a strong end to 2023 and is energized for 2024. The company expects continued growth in its proprietary pharma drug delivery systems and continued improvement in its injectables divisions performance as new capacity continues to come online. The company currently expects earnings per share for the fourth quarter of 2023, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.06 to $1.14.
Explore the complete 8-K earnings release (here) from AptarGroup Inc for further details.
This article first appeared on GuruFocus.
