AptarGroup, Inc. Morgan Stanley 24th Annual Global Healthcare Conference
Review the key takeaways and the transcript of this earnings call.
- Aptar Pharma grew 8 percent in Q2 excluding emergency medicine, with injectable growing 9 percent, consumer healthcare growing 15 percent, and prescription pharma growing 8 percent excluding the naloxone impact.
- Aptar Pharma has grown at a top-line CAGR growth rate of 9 percent over the last 9 years.
- Aptar Pharma targets EBITDA margins of 32 to 36 percent and has consistently been in that target range.
- The company returned about $700 million of capital to shareholders in the last 18 months, including roughly $180 in dividends and the rest in share buybacks.
- Aptar has 32 years of annually increasing dividends and ended the last quarter with leverage of just under 1.5.
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Transcript
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Okay. Good morning, everybody. I'm Daniel Cohen. I'm a Managing Director at Morgan Stanley. It's my pleasure to host this fireside chat with the leadership of AptarGroup. AptarGroup is a global leader in drug delivery and active material science, the technology behind the nasal sprays, inhalers, injectables, and dispensing systems that get critical medicines to patients. Before I introduce the team, just the disclosures that I need to read. For important disclosures, please see the Morgan Stanley research disclosure website at morganstanley.com/researchdisclosures. If you have any questions, please reach out to your Morgan Stanley representative. With me here today, Gael Touya recently stepped into the role of President and CEO, capping more than three decades at Aptar, and most recently leading the pharma segment. Vanessa Kanu joined as Executive Vice President CFO in January 2025, bringing a deep track record as a public company CFO.
Gael, Vanessa, welcome, and thank you for both for being here.
Thank you, Daniel. Thank you.
for the invite. Gael. Yes.
Congratulations on this next chapter as CEO.
Thank you. How should we think about Aptar priorities going forward under your leadership?
What carries forward, and perhaps where will there be changes?
Yeah. Look, the first priority is really to execute on 2026, our commitment. No question. We need to deliver our best upon our commitment and at the same time prep the company for our future long-term growth. This being said, priority one would be to stay focused and close to the Pharma segment. This is the growth engine for the company. I'm looking for my successor for the segment, so I'm going to stay close to it because we need to keep on delivering where we are, and we've got a good business, a good pipeline, and customers expecting on our partnership with them. Then, look, I've been three decades with the company, but it's been a long time. I was a beauty guy or a food and beverage guy.
As we speak, I started my listening tour with the organization, so reengaging with customers, reengaging with the team, and visiting the sites. We've got a global footprint, so I'm starting. I will continue. Priority will be to make sure that from an Aptar standpoint, we allocate resources, energy, and our CapEx to the opportunities where we've got the greatest returns, value not only for customers but for shareholders.
Thank you. Vanessa, you've been with the company for going on 2 years now. Some of the market still describes Aptar as a packaging company. When you first looked under the hood and over the past 2 years, what surprised you most about the business, particularly about the economic side of the business?
Yeah. First of all, I definitely would not describe Aptar Pharma as a traditional packaging company. When I first joined the company, I have to tell you, I was very impressed by the breadth of the portfolio. So spanning everything from our proprietary drug delivery devices to our injectable solutions, to active material science solutions, to the services that we offer, going from formulation expertise to development support, regulatory support. I'm sure we'll talk a bit more about those services in our discussion. But when you look at the breadth of the portfolio and you look particularly at the products that we offer, these are products that are very technical, highly regulated, where safety, quality are super important. Very important, because we cannot compromise patients' lives.
This is where our technical expertise, our intellectual property, and our decades of knowhow in this space really do form a competitive differentiator, so to speak. You do see that in our margin profile. In the Pharma business, our EBITDA margins, I should say, are 32%-36% is our target range, and we have consistently been in that target range. These are EBITDA margins that are best in class. I would say it is really more reflective of a differentiated technology platform than a traditional packaging business.
Not even simply a component supplier either. There is more of a platform- Absolutely wrapped around that.
Absolutely. Maybe just to talk a little bit about the transition.
Obviously, you have been, Gael, in the job for a couple of weeks now. Stephan would say, I think was known for saying, "If it goes through the nose, Aptar is involved." Is that still how we should think about Aptar or- He was making a comment for Aptar Pharma, and I will say it's a colorful way to describe the group.
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