AptarGroup, Inc. (NYSE:ATR) Q3 2023 Earnings Conference Call October 26, 2023 9:00 AM ET

Company Participants

Mary Skafidas - Senior Vice President, Investor Relations & Communications

Stephan Tanda - President & Chief Executive Officer

Bob Kuhn - Executive Vice President & Chief Financial Officer

Conference Call Participants

George Staphos - Bank of America

Gabe Hajde - Wells Fargo Securities

Ghansham Panjabi - Baird

Daniel Rizzo - Jefferies

Operator

Hello and thank you for standing by. Welcome to Aptar's 2023 Third 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, Investor Relations and Communications. Please go ahead.

Mary Skafidas

Thank you. Hello, everyone, and thanks for being with us today. Joining me on today's 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 on our website under the Investor Relations page.

During this call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measure in our press release, which was disseminated yesterday. Please refer to the press release. As always, we will post a replay of this call on our website.

I would now like to turn it over to Stephan Tanda. Stephan, over to you.

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 third quarter. Later in the call Bob Kuhn, our CFO will provide additional details.

Starting on slide 3. For the third quarter, Aptar achieved core sales growth of 2% and delivered double-digit EPS growth of $1.39 per share, due to continued strong demand for our proprietary Pharma dosing and dispensing systems as well as our fragrance dispensing technologies.

We experienced significant margin improvement in the quarter with an adjusted EBITDA margin of about 22%, a 4-point increase over the prior year's quarter. The margin improvement was driven by a strong focus on cost management across the company and the better mix from relatively faster sales growth in Pharma.

In quarter three, robust demand continues for our proprietary Pharma drug-delivery systems, which grew across multiple therapeutic applications, including allergic rhinitis, emergency medicines, central nervous system, therapeutics, nasal saline rinse solutions, eye care and cold and cough as well as asthma and COPD therapies.