Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you talk about the green shoots you are seeing in China and their potential impact on 2025? A: Stephan Tanda, CEO, explained that the Beauty market in China is showing renewed vitality, particularly with local brands gaining share. The market's growth, especially in skincare, is expected to benefit Aptar's business. Fragrance is also growing, albeit from a small base. The Chinese consumer's increased international travel is seen as a positive sign for the beauty business overall.
Q: If currency rates and taxes remain as expected, do you anticipate earnings per share growth in 2025? A: Vanessa Kanu, CFO, stated that despite tax and FX headwinds, they are cautiously optimistic about achieving potential double-digit EPS growth in 2025. Cost reductions are expected to contribute positively to EBITDA and EPS.
Q: What is the impact of the French tax legislation on your earnings? A: Vanessa Kanu, CFO, noted that the French tax legislation will impact the entire year, not just Q1. The legislation, which was anticipated in Q4, is now in effect and has been factored into their Q1 guidance.
Q: How should we think about the destocking in cold and flu products and the timeline for normalization? A: Stephan Tanda, CEO, mentioned that they are seeing some bottoming out in consumer healthcare, with sequential increases in recent months. However, they still face tough comparables in Q1 and Q2. In Beauty, the mix effect is more pronounced, with mustache fragrances picking up and high-end luxury launches not repeating.
Q: What are your expectations for injectables and proprietary delivery systems in 2025? A: Stephan Tanda, CEO, expressed confidence in the demand for injectables, with a good pipeline and order buildup. For proprietary delivery systems, continued strong performance is expected, driven by emerging treatments and central nervous system drugs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.