Headquartered in Crystal Lake, Illinois, AptarGroup, Inc. operates in the consumer packaging space. The Company provides a range of packaging, dispensing, as well as sealing solutions. AptarGroup has a manufacturing presence in 18 countries. Between 1940-1960 AptarGroup’s founding companies started in the United States and Germany. The Company operates in three segments, which include Beauty + Home; Food + Beverage; and Pharma.
On April 22,1993, the Seaquist Group was spun-off from Pittway Corporation and at the same time acquired Pfeiffer GmbH. Also at that time, the Seaquist Group changed its name to AptarGroup. On April 23, 1993, shares of its newly formed company commenced trading on the New York Stock Exchange (NYSE).
Aptar Beauty + Home is a solution partner of packaging delivery systems to the Beauty, Personal Care and Home Care markets. Beauty + Home product solutions include fragrance dispensing, airless packaging, and sampling + promotion (fragrance pumps, cosmetics samples, media samples, and full service solutions). Product solutions for this segment also include closures, dispensers, valves & accessories, complete packaging (e.g. tubes, bottles and jars), spray pumps, and flexible solutions.
Aptar Food + Beverage provides unique dispensing systems to the food and beverage consumer package goods industry. The Company’s Food + Beverage product solutions include BAP, pouch spout, beverage solutions (including child-friendly pouch closures and spouts), dispensing closures, pressurized packaging, and pump systems (dispensing pump and spray pump).
Pharma product solutions include spray pumps, unit-doses, metering valves, eDevices, and dispensers. Product solutions for this segment also include dose indicators/counters, bag on valves, auto-injectors, droppers, and dry powder inhalers.
Furthermore, Pharma product solutions include elastomeric components – pre-filled syringe and cartridge components, as well as stoppers for vials. Pertaining to Pharma, AptarGroup has three divisions: Consumer Health Care, Prescription and Injectables. The Company has manufacturing sites in Argentina, China, France, Germany, India, Switzerland and the United States serving the pharmaceutical industry market.
For Q3 2016, AptarGroup reported sales growth of 1 percent and Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) margin of 21 percent. The Company’s Pharma segment had reported sales growth of 9 percent. This was because of a strong increase in custom tooling sales and also increased product sales to the consumer health care market.
During the Company’s Q3 2016 Earnings Conference Call, Mr. Stephen J. Hagge, AptarGroup’s President and Chief Executive Officer, said, “We are effectively managing costs and focusing on high growth potential areas such as facial skin care, color cosmetics and the home care market. We expect this growth to be driven by trends such as the rise of e-commerce, which will continue to generate demand for innovative packaging solutions.” (Seeking Alpha – AptarGroup’s (ATR) CEO Stephen Hagge on Q3 2016 Results – Earnings Call Transcript)
For Q3 2016, the earlier acquired Mega Airless contributed roughly $18 million or 3 percent of the sales growth and about $0.02 per share to reported earnings per share (EPS). For the nine months ended September 30, 2016, reported sales for AptarGroup grew 1 percent to $1.79 billion from $1.77 billion in 2015.
The Company’s decision to enter the growing injectables market led to the acquisition of Aptar Stelmi. AptarGroup is investing in new capabilities including Airless (Mega Airless) – Germany; Injectables (Aptar Stelmi) – France; and Elastomer Component Capacity -Congers, New York.
The Company’s Return on Invested Capital (ROIC) for 2015 was 14 percent. Moreover, 2015 was AptarGroup’s 22nd consecutive year of paying an increased dividend.