AptarGroup, Inc. (NYSE:ATR) Q1 2023 Earnings Conference Call April 28, 2023 9:00 AM ET
Company Participants
Mary Skafidas - Senior Vice President, Investor Relations and Communications
Stephan Tanda - President and Chief Executive Officer
Bob Kuhn - Executive Vice President and Chief Financial Officer
Conference Call Participants
Ghansham Panjabi - Robert W. Baird
George Staphos - Bank of America
Stefan Diaz - Morgan Stanley
Daniel Rizzo - Jefferies
Kyle White - Deutsche Bank
Gabe Hajde - Wells Fargo Securities
Matt Larew - William Blair
Operator
Ladies and gentlemen, thank you for standing by. Welcome to Aptar's 2023 First Quarter Conference Call. At this time, all participants are in a listen-only mode. Later we will conduct a question-and-answer session.
Introducing today's conference call is Ms. Mary Skafidas, Senior Vice President of Investor Relations and Communications. Please go ahead.
Mary Skafidas
Thank you. Hello everyone, and thanks for being with us today. Joining me on the call are Stephan Tanda, President and CEO; and Bob Kuhn, Executive Vice President and CFO. Our press release and accompanying slide deck have been posted to our Web site. We will also post a replay of this call on our site
Today's call includes some forward-looking statements. Please refer to our SEC filings to review factors that could cause actual results to differ materially from what we are discussing today.
I would now like to turn the conference call over to Stephan.
Stephan Tanda
Thank you, Mary, and good morning, everyone. We appreciate you joining us on the call today. I will begin my remarks by highlighting our results for the first quarter. Later in the call, Bob Kuhn, our CFO, will provide additional details on the quarter. I will also give an update on our progress on key initiatives.
Starting on slide three, for the first quarter, I am pleased to report that Aptar achieved core sales growth of 4%, and delivered adjusted EPS of $0.95 per share due to strong demand for our Pharma and Beauty dispensing solutions. We guided our adjusted earnings per share for the first quarter to be in the range of $0.85 to $0.93 per share. Our adjusted EPS includes a $0.12 impact from startup costs in our injectables expansion program, and the rollout of the new enterprise resource planning or ERP system. Originally, we anticipated that the costs would be closer to $0.08.
Our Pharma segment experienced significant demand for our proprietary dispensing devices in every region and across every end-use category, including nasal decongestion, eye care, cough and cold, saline rinses, as well as allergic rhinitis, emergency medicines and depression therapies. This growth was in line with the brisk market demand. The one area where we anticipate that there is inventory buildup is in emergency medicines. On March 29, the FDA approved Narcan for over-the-counter or OTC usage, as we previously indicated. Anticipation of this approval has benefited our Pharma segment as this new distribution channel for Narcan ramps up. Demand for the OTC channel should moderate over time.