AptarGroup (ATR) Jefferies Global Healthcare Conference 2025 summary

Business overview and strategy

• Pharma is the largest segment, contributing nearly 70% of EBITDA, with a focus on proprietary drug delivery systems and sustainability leadership.

• Operations are globally distributed, with 50% in Europe, 30% in the U.S., and the rest in Latin America and Asia, using standardized technology platforms.

• Capital allocation is balanced between organic investments, M&A, and shareholder returns, maintaining a 70-30 mix.

• Dividend payments have increased annually for 32 consecutive years, with $800 million returned to shareholders from 2019-2024.

• Leverage remains low at 1.2x, supporting flexibility for investments and shareholder returns.

Financial performance and targets

• Long-term targets were revised in 2023, raising pharma revenue growth to 7%-11% and increasing EBITDA and ROIC targets by 100 basis points.

• Pharma CAGR over the past decade is 8%, with 2024 ROIC at 12.5% and closures business performance improving.

• Beauty segment faced top-line challenges but expects improved performance as market demand recovers.

Pharma business and growth drivers

• Pharma business has grown from 20% to nearly 50% of the company, driven by acquisitions and organic growth.

• Focus on IP ownership, long-term regulatory expertise, and service packages supporting drug development from ideation to approval.

• Digital services, including FDA-approved companion apps, are increasingly integrated with product launches.

• Growth drivers include lifecycle management of drugs, geographic expansion, and increasing allergy prevalence.

• Injectable business benefits from biologics growth and significant recent capital investments.