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What changed in APTARGROUP, INC.'s 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of APTARGROUP, INC.'s 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+304 added−312 removedSource: 10-K (2025-02-07) vs 10-K (2024-02-09)

Top changes in APTARGROUP, INC.'s 2024 10-K

304 paragraphs added · 312 removed · 249 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

93 edited+9 added−13 removed38 unchanged
Biggest changeAs of December 31, 2023, women comprised 50% of the Board of Directors approximately 36% of our global employee population and approximately 24% of senior leadership. Our Employee Resource Groups which have been evolving over the past years, provide an open and inclusive forum to facilitate exchange and growth for all employees.
Biggest changeOur Employee Resource Groups which have been evolving over the past years, provide an open and inclusive forum to facilitate exchange and growth for all employees. Aptar is a participant in the Catalyst CEO Champions for Change and the Gender and Diversity KPI Alliance. Aptar was named on the World's Top Female-Friendly Companies by Forbes for 2024, 2023 and 2022.
This assurance process allows for data on consumption of electricity, fuel oil, and natural gas and renewable energy purchases to be verified for accuracy and completeness by an external organization. Globally this process is certified to the ISO 14064 standard for energy and greenhouse gas emission reporting.
This assurance process allows for data on consumption of electricity, fuel oil, natural gas and renewable energy purchases to be verified for accuracy and completeness by an external organization. Globally this process is certified to the ISO 14064 standard for energy and greenhouse gas emission reporting.
OUR STRATEGY We seek to enhance our position as a leading global provider in drug and consumer dosing, dispensing and protection technologies to deliver increased value to our customers and stockholders through strategic focus and execution in the following areas: (i) Focus on Organic Growth with an added focus on high growth regions: We are focused on profitable growth by leveraging capabilities, assets, capacity and by sharing capabilities across segments.
OUR STRATEGY We seek to enhance our position as a leading global provider in drug and consumer dosing, dispensing and protection technologies to deliver increased value to our customers and stockholders through strategic focus and execution in the following areas: Focus on Organic Growth with an added focus in high growth regions: We are focused on profitable growth by leveraging capabilities, assets, capacity and by sharing technologies across segments.
This technology allows medication to be broken up into very fine particles, which enables the drug to be delivered typically via the pulmonary route. Currently the majority of our MDIs sold are used for respiratory ailments such as asthma and chronic obstructive pulmonary disease (COPD). We continue to develop proprietary drug delivery systems and accessories in this division.
This technology allows medication to be broken up into very fine particles, which enables the drug to be delivered typically via the pulmonary route. Currently the majority of our MDIs sold are used for medications for respiratory ailments such as asthma and chronic obstructive pulmonary disease (COPD). We continue to develop proprietary drug delivery systems and accessories in this division.
We seek to maximize our return on investments while focusing on the top and bottom lines. (ii) Focus on Talent and Leadership: Execution of our strategy requires a talented, motivated, diverse, global team. We have continued to focus on talent acquisition and development strategies designed to ensure our teams have the right skills to execute our strategy.
We seek to maximize our return on investments while focusing on the top and bottom lines. Focus on Talent and Leadership: Execution of our strategy requires a talented, motivated, diverse, global team. We have continued to focus on talent acquisition and development strategies designed to ensure our teams have the right skills to execute our strategy.
To support these objectives, our human resource programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay, benefit and incentive programs; enhance our culture through efforts aimed at making the workplace more engaging and inclusive; acquire talent and facilitate internal talent mobility to create a high-performing, diverse workforce; and evolve and invest in technology, tools and resources to enable employees at work.
To support these objectives, our human resource programs are designed to develop talent to prepare them for critical roles and leadership positions for the future; reward and support employees through competitive pay, benefit and incentive programs; enhance our culture through efforts aimed at making the workplace more engaging and equitable; acquire talent and facilitate internal talent mobility to create a high-performing, diverse workforce; and evolve and invest in technology, tools and resources to enable employees at work.
Our business is somewhat capital intensive and it is becoming more important to our customers that we have global manufacturing capabilities though we continue to face meaningful competition from local and regional competitors.
Our business is capital intensive and it is becoming more important to our customers that we have global manufacturing capabilities though we continue to face meaningful competition from local and regional competitors.
Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world's leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has approximately 13,800 dedicated employees in 20 different countries.
Using market expertise, proprietary design, engineering and science to create innovative solutions for many of the world's leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world. Aptar is headquartered in Crystal Lake, Illinois and has approximately 13,500 dedicated employees in 20 different countries.
Packaging for certain products such as natural and organic cosmetics, dermo-cosmetic formulas and anti-aging lotions continue to provide us with growth opportunities. We are a leading provider of packaging solutions for prestige and mass market fragrance products. Our cosmetic lotion pumps, airless dispensing systems, and decorative capabilities are also expected to provide growth opportunities. Personal Care.
Packaging for certain products such as natural and organic cosmetics, dermo-cosmetic formulas and anti-aging lotions continue to provide us with growth opportunities. We are a leading provider of packaging solutions for prestige and mass market fragrance products and indie brands. Our cosmetic lotion pumps, airless dispensing systems, and decorative capabilities are also expected to provide growth opportunities. Personal Care.
We have a strong foundation of learning and development systems and leadership programs at our Corporate University. Our leadership programs are targeted at all levels of the organization, from early career to senior leadership globally. Our program offerings also include many specialized programs such as change management, manufacturing and operational leadership, technical skills and others.
We have a strong foundation of learning and development systems and leadership programs offered by our Corporate University. Our leadership programs are targeted at all levels of the organization, from early career to senior leadership globally. Our program offerings also include many specialized programs such as change management, manufacturing and operational leadership, technical skills and others.
Vinczeller has been Chief Human Resources Officer since November 2018. Prior to this, Ms. Vinczeller spent 12 years in Human Resources leadership roles at International Paper, one of the world’s leading producers of fiber-based packaging, pulp and paper. Kimberly Y. Chainey 48 Executive Vice President, Chief Legal Officer and Corporate Secretary Ms.
Vinczeller has been Chief Human Resources Officer since November 2018. Prior to this, Ms. Vinczeller spent 12 years in Human Resources leadership roles at International Paper, one of the world’s leading producers of fiber-based packaging, pulp and paper. Kimberly Y. Chainey 49 Executive Vice President, Chief Legal Officer and Corporate Secretary Ms.
Tlili held leadership positions at our packaging solutions peers Albéa and Sonoco. He was a Cluster Deputy Manager in Albéa Group from September 2014 to March 2016, Country General Manager in Sonoco from April 2013 to June 2014 and European Sales and Marketing Director from September 2011 to March 2013 in Sonoco. Gael Touya 54 President, Aptar Pharma Mr.
Tlili held leadership positions at our packaging solutions peers Albéa and Sonoco. He was a Cluster Deputy Manager in Albéa Group from September 2014 to March 2016, Country General Manager in Sonoco from April 2013 to June 2014 and European Sales and Marketing Director from September 2011 to March 2013 in Sonoco. Gael Touya 55 President, Aptar Pharma Mr.
Chainey has been Executive Vice President and global Chief Legal Officer since July 2020. Ms. Chainey has been Corporate Secretary since January 2021. Prior to this, Ms.
Chainey has been Executive Vice President, Chief Legal Officer and Corporate Secretary since July 2020. Ms. Chainey has been Corporate Secretary since January 2021. Prior to this, Ms.
We are also partnering with global and regional thought leaders to drive a more circular economy. On October 15, 2016, 197 countries adopted an amendment to phase down hydrofluorocarbon ("HFC") propellants in order to reduce greenhouse gas emission under the Montreal Protocol in Kigali, Rwanda.
We are also partnering with global and regional thought leaders to drive a more circular economy. On October 15, 2016, 197 countries adopted an amendment to phase out hydrofluorocarbon ("HFC") propellants in order to reduce greenhouse gas emission under the Montreal Protocol in Kigali, Rwanda.
Sales to the home care market accounted for approximately 4% of the segment’s total net sales in 2023 and primarily included sales of continuous or metered dose spray aerosol valves, and to a lesser degree spray and lotion pumps. Product applications for continuous spray valves include disinfectants, spray paints, insecticides and automotive products.
Sales to the home care market accounted for approximately 4% of the segment’s total net sales in 2024 and primarily included sales of continuous or metered dose spray aerosol valves, and, to a lesser degree, spray and lotion pumps. Product applications for continuous spray valves include disinfectants, spray paints, insecticides and automotive products.
She was President of DSM Hydrocolloids from 2014 to 2018, President Asia of DSM Food Specialties from 2011 to 2014, Vice President of Channel Marketing from 2008 to 2011 and Vice President of Personal Care in DSM North America from 2005 to 2008. Shiela Vinczeller 60 Chief Human Resources Officer Ms.
She was President of DSM Hydrocolloids from 2014 to 2018, President Asia of DSM Food Specialties from 2011 to 2014, Vice President of Channel Marketing from 2008 to 2011 and Vice President of Personal Care in DSM North America from 2005 to 2008. Shiela Vinczeller 61 Chief Human Resources Officer Ms.
In Europe and in parts of the United States (including California), regulations require food and beverage companies to tether plastic caps to ensure the caps stay with the package, thus improving the likelihood the caps will enter the recycling stream.
In the EU, in other parts of Europe and in parts of the United States (including California), regulations require food and beverage companies to tether plastic caps to ensure the caps stay with the package, thus improving the likelihood the caps will enter the recycling stream.
We leverage companion and regulated software solutions, connected devices and diagnostic tools that support patients to manage their disease as well as enabling care teams to remotely monitor the health of the patients when needed.
We leverage companion and regulated software solutions, connected devices and diagnostic tools that support patients to manage their disease, as well as enable care teams to remotely monitor the health of the patients when needed.
Hedi Tlili 49 President, Aptar Closures Mr. Tlili has been President of Aptar Closures since December 2019. Prior to this, Mr. Tlili was President of Aptar EMEA Beauty + Home from June 2018 to November 2019 and President of Aptar EMEA Food + Beverage from May 2016 to May 2018. Prior to joining Aptar, Mr.
Hedi Tlili 50 President, Aptar Closures Mr. Tlili has been President of Aptar Closures since December 2019. Prior to this, Mr. Tlili was President of Aptar EMEA Beauty + Home from June 2018 to November 2019 and President of Aptar EMEA Food + Beverage from May 2016 to May 2018. Prior to joining Aptar, Mr.
There were no arrangements or understandings between any of the executive officers and any other person(s) pursuant to which such officers were elected. 9/ATR 2023 Form 10-K Table of Contents
There were no arrangements or understandings between any of the executive officers and any other person(s) pursuant to which such officers were elected. 9/ATR 2024 Form 10-K Table of Contents
We believe Aptar is leading on corporate environmental ambition, action and transparency worldwide as proven by our "A-" letter grade on the CDP climate change assessment and our "B" letter grade on the CDP water assessment.
We believe Aptar is a leader on corporate environmental ambition, action and transparency worldwide as proven by our "A" letter grade on the CDP climate change assessment and our "B" letter grade on the CDP water assessment.
Our periodic employee get-togethers at local sites and offices continue to be well received, provide an opportunity for recognition, celebration and a way to continue to enrich our culture. Employee Development & Leadership Succession. Developing our employees to reach their full potential is an integral part of our Core Values.
Our periodic employee events at local sites and offices continue to be well received, provide an opportunity for recognition, celebration and a way to continue to enrich our culture. Employee Development & Leadership Succession. Developing our employees to reach their full potential is an integral part of our core values.
We have established an innovation team that focuses on designing for and converting into more sustainable options like post-consumer recycled (PCR) resin and Food and Drug Administration approved resin alternatives. We are designing for sustainability by providing products that improve recyclability, use sustainable material and use less material, and we offer multiple tethered options.
We have established an innovation team that focuses on designing for and converting into more sustainable options like PCR resin and Food and Drug Administration approved resin alternatives. We are designing for sustainability by providing products that improve recyclability, use sustainable material and use less material, and we offer multiple tethered options.
(iii) Excellence in Core Business Functions: We have established three pillars of functional excellence designed to ensure we perform at best in class levels in the core functions of any manufacturing operations, namely “innovate,” “produce” and “sell,” and that our business teams are supported in the areas of Innovation, Operations and Commercial Excellence.
Excellence in Core Business Functions: We have developed three pillars of functional excellence designed to ensure we perform at best in class levels in the core functions of any manufacturing operations, namely “innovate,” “produce” and “sell,” and that our business teams are supported in the areas of Innovation, Operations and Commercial Excellence.
Our recent capital investment commitments in this business have enabled us to bring to market a broader offering of higher value products including prefilled and coated stoppers and plungers which better protect the contents of the primary packaging container and the integrity of biologic formulations. Pharmaceutical applications for this market include vaccines, anti-thrombotic, small molecules and biologics.
Our recent capital investment commitments in this business have enabled us to bring to market a broader offering of higher value products including coated stoppers and plungers (PremiumCoat®) which better protect the contents of the primary packaging container and the integrity of biologic formulations. Pharmaceutical applications for this market include vaccines, anti-thrombotic, small molecules, GLP-1 and biologics.
We believe we have adequate safety stock to mitigate any significant supply concerns. CUSTOMERS We have approximately 5,000 customers with no single customer or group of affiliated customers accounting for greater than 5% of 2023 Net Sales. INTERNATIONAL BUSINESS We are geographically diverse with manufacturing and sales operations in Asia, Europe, Latin America (including Mexico) and North America.
We believe we have adequate committed safety stock to mitigate any significant supply concerns. CUSTOMERS We have approximately 5,000 customers with no single customer or group of affiliated customers accounting for greater than 4% of 2024 Net Sales. INTERNATIONAL BUSINESS We are geographically diverse with manufacturing and sales operations in Asia, Europe, Latin America (including Mexico) and North America.
We have manufacturing facilities located throughout the world including North America, Europe, Asia and Latin America. We have approximately 5,000 customers with no single customer or group of affiliated customers accounting for greater than 5% of our 2023 Net Sales.
We have manufacturing facilities located throughout the world including North America, Europe, Asia and Latin America. We have approximately 5,000 customers with no single customer or group of affiliated customers accounting for greater than 4% of our 2024 Net Sales.
We also have an increasing number of product solutions that address the increased use of flexible packaging formats. Food. Sales to the food market accounted for approximately 52% of the segment’s total net sales in 2023 and primarily include sales of dispensing closures including those utilizing elastomeric flow-control components, and absorbent and non-absorbent food service trays.
We also have an increasing number of product solutions that address the increased use of flexible packaging formats. Food. Sales to the food market accounted for approximately 53% of the segment’s total net sales in 2024 and primarily include sales of dispensing closures including those utilizing elastomeric flow-control components, and absorbent and non-absorbent food service trays.
We are a net exporter of goods from Europe and a net importer of goods to the North American, Asian and Latin American regions. 5/ATR 2023 Form 10-K Table of Contents FOREIGN CURRENCY Because of our international presence, movements in exchange rates have a significant impact on the translation of the financial statements of our foreign subsidiaries.
We are a net exporter of goods from Europe and a net importer of goods to the North American, Asian and Latin American regions. 5/ATR 2024 Form 10-K Table of Contents FOREIGN CURRENCY Because of our international presence, movements in exchange rates have an impact on the translation of the financial statements of our foreign subsidiaries.
We have teams dedicated to designing for sustainability by providing products that improve recyclability and use less material. Aptar has launched products and components in North America, Europe and Asia made with post-consumer recycled (PCR) resins and continues to explore additional opportunities for alternative resins and recyclable products.
We have teams dedicated to designing for sustainability by providing products that improve recyclability and use less material. Aptar has launched products and components in North America, Europe and Asia made with PCR resin and continues to explore additional opportunities for alternative resins and recyclable products.
Characteristics of this market include (i) governmental regulation of our pharmaceutical customers, (ii) contaminant-controlled manufacturing environments and (iii) a significant amount of time and research from initially working with pharmaceutical companies at the molecular development stage of a medication through the eventual distribution to the market.
Characteristics of this market include (i) governmental regulation of our pharmaceutical customers, (ii) clean room manufacturing environments and (iii) a significant amount of time and research from initially working with pharmaceutical companies at the molecular development stage of a medication through the eventual distribution to the market.
Sales to the personal care market accounted for approximately 33% of the segment’s total net sales in 2023 and primarily included sales of lotion pumps, spray pumps and continuous spray aerosol valves. Personal care lotion pump product applications include hand sanitizers, hand soaps, bath and shower cleansers and skin moisturizers.
Sales to the personal care market accounted for approximately 35% of the segment’s total net sales in 2024 and primarily included sales of lotion pumps, spray pumps and continuous spray aerosol valves. Personal care lotion pump product applications include hand sanitizers, hand soaps, bath and shower cleansers and skin moisturizers.
Sales of pumps to deliver prescription allergy medicine that is now available over-the-counter remains part of our prescription drug division. Our nasal pumps and unit dose and bidose devices are also used to deliver liquid and powder pain management, emergency medicines and central nervous system therapies. MDIs are used for dispensing precise amounts of aerosolized medication.
Sales of pumps to deliver prescription allergy medicine that is now available over-the-counter remains part of our prescription drug division. Our nasal pumps and unidose and biodose devices are also used to deliver liquid and powder pain management, emergency medicines and central nervous system therapies. MDIs are used for dispensing precise amounts of aerosolized medication.
Sales to the consumer health care market accounted for approximately 25% of the segment’s total net sales in 2023. Many product applications for this market are similar to the prescription market proprietary drug delivery systems; however, these product applications are sold over-the-counter without a prescription.
Sales to the consumer health care market accounted for approximately 22% of the segment’s total net sales in 2024. Many product applications for this market are similar to the prescription market proprietary drug delivery systems; however, these product applications are sold over-the-counter without a prescription.
The information provided on our website is not part of this report and is therefore not incorporated herein by reference. 8/ATR 2023 Form 10-K Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS Our executive officers as of February 9, 2024 are as follows: Name Age Position with the Company Stephan Tanda 58 President and Chief Executive Officer Mr.
The information provided on our website is not part of this report and is therefore not incorporated herein by reference. 8/ATR 2024 Form 10-K Table of Contents INFORMATION ABOUT OUR EXECUTIVE OFFICERS Our executive officers as of February 7, 2025 are as follows: Name Age Position with the Company Stephan Tanda 59 President and Chief Executive Officer Mr.
Sales to the prescription drug market accounted for approximately 46% of the segment’s total net sales in 2023. Pumps sold to the prescription drug market deliver medications nasally, orally or topically. Currently the majority of our pumps sold are for nasal allergy treatments.
Sales to the prescription drug market accounted for approximately 49% of the segment’s total net sales in 2024. Pumps sold to the prescription drug market deliver medications nasally, orally or topically. Currently the majority of our pumps sold are for nasal allergy treatments.
(iv) Focus on Reducing Fixed Costs and Improving our Return on Invested Capital: We strive to reduce selling, research & development and administrative ("SG&A") costs and overall fixed costs by leveraging our Global Business Service Centers, while improving our return on invested capital throughout the business. The key concepts are simplification, centralization, standardization and automation.
Focus on Managing Fixed Costs and Improving our Return on Invested Capital: We strive to manage selling, research & development and administrative ("SG&A") costs and overall fixed costs by leveraging our Global Business Service Centers, while improving our return on invested capital throughout the business. The key concepts are simplification, centralization, standardization and automation.
In recent years, sales of dispensing closures have grown as consumers worldwide have demonstrated a preference for a package utilizing the convenience of a dispensing closure.
We primarily sell dispensing closures. In recent years, sales of dispensing closures have grown as consumers worldwide have demonstrated a preference for a package utilizing the convenience of a dispensing closure.
Product applications for dispensing closures include sauces, condiments, infant nutrition and other food products. We also leverage our material science technology to sell and further develop packaging solutions to the food service market to enhance the shelf life of those products. Beauty, Personal Care and Home Care.
Product applications for dispensing closures include sauces, condiments, infant nutrition and other food products. We also leverage our material science technology to sell and further develop packaging solutions to the food service market to enhance the shelf life of those products. Beverage.
We believe our competitive advantages include our consistent high levels of innovation, quality and service, geographic diversity, financial strength and stability and breadth of products and services. Our manufacturing strength lies in the ability to mold complex plastic components and formulate and finish elastomer and silicone components in a cost-effective manner and to assemble products at high speeds.
We believe our competitive advantages include our consistent high levels of innovation, quality, regulatory, customer pharma services, geographic diversity, financial strength and reliability and breadth of products and services. Our manufacturing strength lies in the ability to mold complex plastic components and formulate and finish elastomer and silicone components in a cost-effective manner and to assemble products at high speeds.
At AptarGroup, we aim to cultivate a diverse culture founded on fairness and a sense of belonging rooted in our core values of mutual trust and respect. We support and promote the development of women as we aspire for more balanced gender representation.
We aim to cultivate an open culture founded on fairness and a sense of belonging rooted in our core values of mutual trust and respect. We support and promote the development of women as we aspire for more balanced gender representation.
Touya has been President of Aptar Pharma since September 2018. Prior to this, Mr. Touya was President of Aptar Food + Beverage from 2016 to August 2018, President of Aptar Food + Beverage Europe from 2012 to 2015 and Business Development Vice President Skin Care and Color Cosmetics from 2010 to 2011. Xiangwei Gong 54 President, Aptar Asia Ms.
Touya has been President of Aptar Pharma since September 2018. Prior to this, Mr. Touya was President of Aptar Food + Beverage from 2016 to August 2018, President of Aptar Food + Beverage Europe from 2012 to 2015 and Business Development Vice President Skin Care and Color Cosmetics from 2010 to 2011.
As of December 31, 2023, Aptar had approximately 13,800 full-time employees. Of the full-time employees, approximately 8,400 were located in Europe, 2,800 were located in Asia and Latin America and the remaining 2,600 were located in North America.
As of December 31, 2024, Aptar had approximately 13,500 full-time employees. Of the full-time employees, approximately 8,500 were located in Europe, 2,600 were located in Asia and Latin America and the remaining 2,400 were located in North America.
At Aptar, we conduct annual leadership for growth surveys. We have focused on organizational development based on our leadership principles, core values and strategic priorities. Our goal is to ensure that Aptar is well positioned for long-term growth and that we continue to be a high-performing, values-based, customer-focused company, with active commitments to innovation and sustainability.
We focus on organizational development based on our leadership principles, core values and strategic priorities. Our goal is to ensure that Aptar is well positioned for long-term growth and that we continue to be a high-performing, values-based, customer-focused company, with active commitments to innovation and sustainability.
In March 2023, Aptar was named one of Barron’s 100 Most Sustainable Companies for 2022, marking the fifth consecutive year Aptar was included on the Barron’s list. Also in March 2023, Aptar was named on CDP's Supplier Engagement Leaderboard, for the third consecutive year, in recognition of our efforts to measure and reduce climate risk within our supply chain.
In February 2024, Aptar was named one of Barron’s 100 Most Sustainable Companies for 2022, marking the fifth consecutive year Aptar was included on the Barron’s list. In March 2024, Aptar was named to CDP's Supplier Engagement Leaderboard, for the fourth consecutive year, in recognition of our efforts to measure and reduce climate risk within our supply chain.
Metered dose valves are used for air fresheners. Spray and lotion pump product applications primarily include household cleaners, insect repellent and industrial cleaners. APTAR CLOSURES SEGMENT Our Aptar Closures segment accounted for 20% of our Net Sales, 17% of our Total Assets and 14% of our Adjusted EBITDA excluding non-allocated corporate costs for 2023. We primarily sell dispensing closures.
Metered dose valves are used for air fresheners. Spray and lotion pump product applications primarily include household cleaners, insect repellent and industrial cleaners. APTAR CLOSURES SEGMENT Our Aptar Closures segment accounted for 20% and 17% of our Net Sales and Total Assets, respectively, for 2024 and accounted for 14% of our Adjusted EBITDA excluding non-allocated corporate costs in 2024.
Dispensing closures are plastic caps that allow a product to be dispensed without removing the cap. Aerosol valves dispense product from pressurized containers. The majority of the aerosol valves that we sell are continuous spray valves, with the balance being metered dose valves and bag-on valves. We also manufacture and sell elastomeric primary packaging components.
Dispensing closures are plastic caps that allow a product to be dispensed without removing the cap from the container. Aerosol valves dispense product from pressurized containers. The majority of the aerosol valves that we sell are continuous spray valves or metered dose valves. We also manufacture and sell elastomeric primary packaging components.
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements.
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A strengthening U.S. dollar has a dilutive effect on our financial statements.
Compared to our 2019 baseline, Aptar has made progress cutting emissions, and continues efforts to mitigate climate risks and further the low-carbon economy, as reported by the Company through global environmental non-profit CDP's 2023 climate change and water questionnaires.
Compared to our 2019 baseline, Aptar has made progress cutting emissions, and continues efforts to mitigate climate risks and further the low-carbon economy, as reported by the Company through global environmental non-profit CDP's 2024 Corporate Questionnaire.
For more information, visit www.aptar.com. Our business was started in the late 1940’s, manufacturing and selling aerosol valves in the United States, and has grown primarily through acquisitions and internal expansion. In this report, we may refer to AptarGroup, Inc. and its subsidiaries as “AptarGroup”, “Aptar” or the “Company”.
For more information, visit www.aptar.com. Our business was started in the late 1940’s, manufacturing and selling aerosol valves in the United States, and has grown primarily through acquisitions and organic growth. In this report, we may refer to AptarGroup, Inc. and its subsidiaries as “AptarGroup,” “Aptar” or the “Company.”.
Aptar also has developed and deployed an integrated talent management system that includes annual talent reviews, three tiered succession planning, and individual development planning. Promotions from within provide career growth opportunities for our employees. Diversity, Equity & Inclusion.
Aptar also has developed and deployed an integrated talent management system that includes annual talent reviews, succession planning, and individual development planning. A focus on promotions from within provide career growth opportunities for our employees. Inclusion, Equity & Belonging.
While we offer a wide variety of services and products, our primary products are dispensing pumps, closures, aerosol valves, elastomeric primary packaging components, active material science solutions and digital health solutions. Dispensing pumps are finger-actuated dispensing systems that dispense a spray or lotion from non-pressurized containers.
We partner with our customers by providing innovative solutions and end market expertise. While we offer a wide variety of services and products, our primary products are dispensing pumps, closures, aerosol valves, elastomeric primary packaging components, active material science solutions and digital health solutions. Dispensing pumps are finger-actuated dispensing systems that dispense a spray or lotion from non-pressurized containers.
Additionally, we intend to continue to focus on sustainability because leadership in sustainability remains a key differentiator across all of our segments. 2/ATR 2023 Form 10-K Table of Contents APTAR PHARMA SEGMENT Our Aptar Pharma segment is our largest segment in terms of net sales and total assets, representing 44% and 47% of our Net Sales and Total Assets, respectively, for 2023 and accounted for 65% of our Adjusted EBITDA excluding non-allocated corporate costs in 2023.
Additionally, we continue to focus on sustainability because leadership in sustainability remains a key differentiator across all of our segments. 2/ATR 2024 Form 10-K Table of Contents APTAR PHARMA SEGMENT Our Aptar Pharma segment is our largest segment in terms of net sales and total assets, representing approximately 46% of both our Net Sales and Total Assets for 2024 and accounted for 67% of our Adjusted EBITDA excluding non-allocated corporate costs in 2024.
The Aptar Beauty segment sells a broad variety of pumps, airless systems and valves to the fragrance, color cosmetics, facial skincare, personal care and home care markets. We believe we are a leading supplier for the majority of the products we sell primarily to the beauty markets. Fragrance, facial skincare, color cosmetics.
The Aptar Beauty segment sells a broad variety of pumps, airless systems and valves to the fragrance, color cosmetics, facial skincare, personal care and home care markets. We believe we are a leading supplier for the majority of the products we sell primarily to the beauty markets. 3/ATR 2024 Form 10-K Table of Contents Fragrance, facial skincare, color cosmetics.
The EU and the United States are planning new regulations to ban perfluoroalkyl and polyfluoroalkyl substances (PFAS) materials used in the packaging industry. The potential exists for these types of regulations to expand worldwide.
The EU and other states in the United States are also planning new regulations to ban certain PFAS materials used in the packaging industry. The potential exists for these types of regulations to expand worldwide.
We leverage connected devices, diagnostics and digital therapeutic tools that support patients in managing their disease as well as enable care teams to remotely monitor the health of the patients when needed.
The digital health solutions we provide improve patients' treatment, experience and outcomes. We leverage connected devices, diagnostics and digital therapeutic tools that support patients in managing their disease as well as enable care teams to remotely monitor the health of the patients when needed.
Consumers’ and patients' preferences for convenience and product differentiation through drug delivery and packaging design and function are important to our customers and they have converted many of their packages from non-dispensing formats to dispensing systems that offer enhanced shelf appeal, convenience, cleanliness and accuracy of dosage. We design our products with both people and the environment in mind.
Consumers’ and patients' preferences for convenience and product differentiation through drug delivery and packaging design and function are important to our customers and they have converted many of their packages from non-dispensing formats to dispensing systems that offer enhanced shelf appeal, ease of use, convenience, cleanliness and accuracy of dosage.
These components are used in the injectables market. Products include stoppers for infusion, antibiotic, lyophilization and diagnostic vials. Our elastomeric components also include pre-filled syringe components, such as plungers, needle shields, tip caps and components for cartridges.
These components are used in the injectables market and the products include stoppers for vials, antibiotic, lyophilization and diagnostic vials. Our elastomeric components also include pre-filled syringe components, such as plungers, needle shields, tip caps and components for cartridges. We specialize in active material science innovations for the healthcare and pharmaceutical industries.
Sales to these markets accounted for approximately 63% of the segment’s total net sales in 2023. The fragrance, facial skincare, and color cosmetics markets require a broad range of spray and lotion pumps and sampling dispensing systems to meet functional as well as aesthetic requirements.
Sales to these markets accounted for approximately 61% of the segment’s total net sales in 2024. The fragrance, facial skincare, and color cosmetics markets require a broad range of spray and lotion pumps and sampling dispensing systems to meet functional needs and aesthetic preferences of our customers.
Typical consumer health care spray product applications include nasal decongestants, nasal salines and cough and cold products. Typical consumer health care valve product applications include nasal saline using our bag-on valve technology. We have developed a multi dose ophthalmic dispensing device suitable for unpreserved formulations.
Typical consumer health care spray product applications include nasal decongestants, nasal salines and cough and cold products. Typical consumer health care valve product applications include nasal saline using our bag-on valve technology. We have developed a multi-dose dispensing device suitable for ophthalmic formulations. Other products sold to this market include airless pump systems for dermal drug delivery product applications.
Active Material Science Solutions. Sales of active material science solutions products accounted for approximately 10% of the segment’s total net sales in 2023. Our three-phase Active-Polymer™ technology solution is used to protect oral solid dose drugs, medical devices, diabetes diagnostics and probiotics.
Active Material Science Solutions. Sales of active material science solutions products accounted for approximately 11% of the segment’s total net sales in 2024. Our three-phase Active-Polymer™ technology solution is used to protect oral solid dose drugs, medical devices, diabetes test strips, diagnostics, and probiotics vials as well as wearable continuous glucose monitors.
In addition, the European Union (EU) has adopted a circular economy package. The package maps out a series of actions planned over several years. Some actions have resulted in regulations aimed to reduce marine litter, increase plastic recycling rates, prohibit single-use plastic packaging and introduce new taxes in relation to the end-of-life management of packaging.
The package maps out a series of actions planned over several years. Some actions have resulted in regulations aimed to reduce marine litter, increase plastic recycling rates, mandate minimum recycled content for plastic packaging, prohibit single-use plastic packaging and introduce new charges in relation to the end-of-life management of packaging.
ENVIRONMENT & SUSTAINABILITY Our manufacturing operations primarily involve plastic injection molding, automated assembly processes, elastomer and silicone formulation and finishing and, to a limited degree, metal anodization and vacuum metallization of plastic components. Historically, the environmental impact of these processes has been minimal, and we believe we meet current environmental standards in all material respects.
ENVIRONMENT & SUSTAINABILITY Our manufacturing operations primarily involve plastic injection molding, automated assembly processes, elastomer and silicone formulation and finishing and, to a limited degree, metal anodization and vacuum metallization of plastic components. Historically, the environmental impact of these processes has been minimal, and we collaborate with local permitting authorities to ensure we operate responsibly.
Export sales from the United States were $196.6 million and $211.1 million in 2023 and 2022, respectively. Although Europe represents the largest region for us in terms of sales, our beauty and pharmaceutical customers often export their finished products using our technology around the world for consumption.
Although Europe represents the largest region for us in terms of sales, our beauty and pharmaceutical customers often export their finished products using our technology around the world for consumption.
Conversely, a strengthening U.S. dollar has a dilutive effect. We manage our exposures to foreign exchange principally with forward exchange contracts to economically hedge recorded transactions and firm purchase and sales commitments denominated in foreign currencies. EMPLOYEE AND LABOR RELATIONS Human Capital. Our key human capital management objectives are to attract, retain and develop the highest quality talent.
Conversely, a weakening U.S. dollar relative to foreign currencies has an additive translation effect. We manage our exposures to foreign exchange principally with forward exchange contracts to economically hedge recorded transactions and firm purchase and sales commitments denominated in foreign currencies. EMPLOYEE AND LABOR RELATIONS Human Capital.
During 2023 and 2022, we acquired several companies to strengthen and broaden our portfolio, including the following business combinations: – March 2023 - We acquired 100% of the outstanding capital stock of iD SCENT for approximately $9.4 million (net of $1.4 million cash acquired). iD SCENT offers green sampling solutions for perfume and cosmetics. – March 2023 - We acquired 80% of the equity interests in Gulf Closures W.L.L.
During 2024 and 2023, we acquired and invested in several companies to strengthen and broaden our portfolio: – October 2024 - We acquired 40% of the equity interests in Ningbo Jinyu Technology Industry Co., Ltd., doing business as Goldrain, (referred to herein as "Goldrain") for approximately $99 million. – March 2023 - We acquired 100% of the outstanding capital stock of iD SCENT for approximately $9.4 million (net of $1.4 million cash acquired). iD SCENT offers fully recyclable sampling solutions for perfume and cosmetics. – March 2023 - We acquired 80% of the equity interests in Gulf Closures W.L.L.
Termination of employees at certain of our international operations could be costly due to local regulations regarding severance benefits. There were no material work stoppages in 2023 and management considers our employee relations to be satisfactory. Higher employee turnover levels or our failure to attract and retain talent in a timely manner could impact our future results. Employee Engagement.
Termination of employees at certain of our international operations could be costly due to local regulations regarding severance benefits. Higher employee turnover levels or our failure to attract and retain talent in a timely manner could impact our future results. Employee Well-being & Safety. Employee safety and well-being is a primary focus of Aptar.
("Metaphase") for approximately $5.1 million (net of $0.1 million of cash acquired).
("Gulf Closures") for approximately $1.5 million (net of $1.2 million cash acquired).
Gong has been President of Aptar Asia since October 2018. Prior to this, Ms. Gong held various leadership positions at Royal DSM for over 22 years.
Xiangwei Gong 55 Executive Vice President, Strategic Group Development Beyond the Current Segments and President, Aptar Asia Ms. Gong has been Executive Vice President, Strategic Group Development Beyond the Current Segments since January 2025 and President of Aptar Asia since October 2018. Prior to this, Ms. Gong held various leadership positions at Royal DSM for over 22 years.
Europe is our largest region in terms of sales, where sales (including exports) for the years ended December 31, 2023 and 2022 were approximately 57% and 53% of our consolidated sales, respectively. Asia and Latin America when aggregated represented approximately 14% and 14% of our consolidated sales for the years ended December 31, 2023 and 2022, respectively.
Europe is our largest region in terms of sales, where sales based on shipped to locations for the years ended December 31, 2024 and 2023 were approximately 49% and 52% of our consolidated sales, respectively. Asia and Latin America when aggregated represented approximately 19% and 18% of our consolidated sales for the years ended December 31, 2024 and 2023, respectively.
Injectables are elastomeric primary packaging components that assist with the administration of injected medicines. Injectable products offered include stoppers for vials and pre-filled syringe components, such as plungers, rigid needle shields, tip caps and components for cartridges.
Injectable products offered include stoppers for vials and pre-filled syringe components, such as plungers, rigid needle shields, tip caps and plungers for cartridges.
(v) Acquisitions and Partnerships: We will continue to focus on growing the Company through appropriate business acquisition opportunities as well as developing partnerships to expand the scope of our technologies, geographic presence and product offerings.
Acquisitions and Partnerships: We will continue to focus on growing the Company through appropriate business acquisition opportunities as well as developing partnerships to expand the scope of our technologies, geographic presence and product offerings. Facilitating the execution of our strategy are our core values, which dictate how we interact internally and externally with our employees, customers, suppliers and all stakeholders.
Closures that were developed in Beauty + Home moved to Aptar Closures together with the operations of the legacy Food + Beverage segment. Aptar's food protection business and our elastomeric flow-control technology business continue to report through the Aptar Closures segment. The realignment brings us closer to how our customers are structured and operate their businesses.
Aptar's food protection business and our elastomeric flow-control technology business continues to report through the Aptar Closures segment. The realignment has brought us closer to how our customers are structured and operate their businesses.
We also offer live webinars in small group settings focusing on specific health and well-being topics to provide opportunities for small group interaction.
We have also partnered with external experts and offer live webinars in small group settings focusing on specific health and well-being topics to provide opportunities for small group interaction and offer various options to support health and well-being. Employee Engagement. At Aptar, we conduct annual employee engagement surveys.
Examples of beverage products currently utilizing dispensing closures include bottled water, sport and energy drinks, juices and concentrated water flavorings. 4/ATR 2023 Form 10-K Table of Contents GENERAL BUSINESS INFORMATION RESEARCH AND DEVELOPMENT Our commitment to innovation, one of our competitive strengths, has resulted in an emphasis on research and development directed toward developing affordable, new, sustainable and innovative packaging, drug delivery solutions and connected devices and adapting existing products for new markets or customer requirements.
Sales to the beauty, home care and healthcare markets accounted for approximately 7% o f the segment’s total net sales in 2024 and primarily include sales of dispensing closures for dish care, and other products to provide convenience, function, and style. 4/ATR 2024 Form 10-K Table of Contents GENERAL BUSINESS INFORMATION RESEARCH AND DEVELOPMENT Our commitment to innovation, one of our competitive strengths, has resulted in an emphasis on research and development directed toward developing affordable, new, sustainable and innovative packaging, drug delivery solutions and connected devices and adapting existing products for new markets or customer requirements.
Sustainability, e-commerce, and value providing solutions are what we see as the key drivers for growth in these markets. Beverage. Sales to the beverage market accounted for approximately 21% of the segment’s total net sales in 2023 and primarily include sales of dispensing closures including those utilizing elastomeric flow-control components.
Sales to the beverage market accounted for approximately 21% of the segment’s total net sales in 2024 and primarily include sales of dispensing closures including those utilizing elastomeric flow-control components.
Other products sold to this market include airless pump systems for dermal drug delivery product applications. We continue to see trends toward more child resistant and senior-friendly packaging solutions and have developed products to meet these market needs. Injectables. Sales to the injectables market accounted for approximately 18% of the segment’s total net sales in 2023.
We continue to see trends toward more child resistant and senior-friendly packaging solutions and have developed products to meet these market needs. Injectables. Sales to the injectables market accounted for approximately 17% of the segment’s total net sales in 2024. Injectables are elastomeric primary packaging components that assist with the administration of injected medicines.
At the same time, we have simplified and focused our Beauty + Home segment to better leverage our complex spray and dispensing solutions for prestige and mass brands in the beauty, personal care and home care markets. For many of our customers, personal care products are considered part of "beauty" and so we renamed this segment, Aptar Beauty.
At the same time, we simplified and focused our Beauty segment to better leverage our complex spray and dispensing solutions for prestige and mass brands in the beauty, personal care and home care markets. The segment realignment had no impact on our Consolidated Statements of Income, Balance Sheets, and Cash Flows.
With this update, Aptar’s Scope 3 ambition remains the same, as does our commitment to increase annual sourcing of renewable electricity to 100% by 2030. This science-based approach incorporates our own operations and operations within the value chain. In addition, we annually undergo data assurance as part of our sustainability reporting.
The Scope 1 and Scope 2 targets were set in line with requirements to keep global warming at 1.5° Celsius by 2030. This science-based approach incorporates our own operations and operations within our value chain. In addition, we annually undergo data assurance as part of our sustainability reporting.
Available as standalone or as a fully integrated offering in our existing range of drug delivery solutions, we have digital health solutions covering a wide range of therapeutic areas including, but not limited to, pulmonary, oncology, diabetes, immunology and neurology. 3/ATR 2023 Form 10-K Table of Contents APTAR BEAUTY SEGMENT Our Aptar Beauty segment is our second largest segment in terms of net sales and total assets, representing 36% and 32% of our Net Sales and Total Assets, respectively, for 2023 and accounted for 21% of our Adjusted EBITDA excluding non-allocated corporate costs in 2023.
Available as standalone or as a fully integrated offering in our existing range of drug delivery solutions, we have digital health solutions covering a wide range of therapeutic areas including, but not limited to, pulmonary, oncology, diabetes, immunology and neurology.

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Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeFood and Drug Administration (FDA) and by comparable government agencies in other countries. The regulatory clearance and approval process may result in, among other things, delayed realization of product revenues, substantial additional costs or limitations on indicated uses of products, any one of which could have a material adverse effect on our financial condition and results of operations.
Biggest changeThe regulatory clearance and approval process may result in, among other things, delayed realization of product revenues, substantial additional costs or limitations on indicated uses of products, any one of which could have a material adverse effect on our financial condition and results of operations. 13/ATR 2024 Form 10-K Table of Contents We are exposed to risks from lawsuits and claims, including product liability claims, as well as investigations, audits and other proceedings, which may result in substantial costs and expenses or interruption of our normal business operations.
Customer demand across all segments may decrease quickly as a result of future developments related to the health crises, including the extent, duration and severity of outbreaks, the availability, adoption and efficacy of approved vaccines and treatments, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extended in response to outbreaks, and numerous other uncertainties.
Customer demand across all segments may decrease quickly as a result of future developments related to a health crises, including the extent, duration and severity of outbreaks, the availability, adoption and efficacy of approved vaccines and treatments, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extended in response to outbreaks, and numerous other uncertainties.
As of December 31, 2023, less than 1% of our consolidated net sales were from Russia and Ukraine; in addition, less than 2% is imported into Russia and Ukraine and therefore the war has not had, and we continue to expect that it would not have a material direct impact to our consolidated results.
As of December 31, 2024, less than 1% of our consolidated net sales were from Russia and Ukraine; in addition, less than 2% is imported into Russia and Ukraine and therefore the war has not had, and we continue to expect that it would not have a material direct impact to our consolidated results.
In the pharmaceutical market, the proprietary nature of our customers’ products and the success or failure of their products in the market using our dispensing systems may have a material impact on our operating results and financial condition. We may potentially work for years on modifying our dispensing device to work in conjunction with a customer’s drug formulation.
In the pharmaceutical market, the proprietary nature of our customers’ products and the success or failure of their products in the market using our dispensing systems may have a material impact on our operating results and financial condition. We typically work for years modifying our dispensing device to work in conjunction with a customer’s drug formulation.
For example, during 2020 the COVID-19 pandemic adversely affected our sales of products to our prescription pharma customers, due to lower incidences of common illnesses and doctors appointments, and to our travel and retail beauty business and on-the-go beverage customers.
For example, during 2020 the COVID-19 pandemic adversely affected our sales of products to our prescription pharma customers, due to lower incidences of common illnesses and doctors' appointments, and to our travel and retail beauty business and on-the-go beverage customers.
Raw material costs may continue to increase in the coming years due to market fluctuation and the use of post-consumer recycled (PCR) resin for our sustainable product offerings and future market conditions may prevent us from passing these increased costs on to our customers through timely price increases.
Raw material costs may continue to increase in the coming years due to market fluctuation and the use of PCR resin for our sustainable product offerings and future market conditions may prevent us from passing these increased costs on to our customers through timely price increases.
We may encounter increased costs as we reformulate and redesign our product offerings in response to changing customer behaviors, and our efforts may be unsuccessful. Ownership by Certain Significant Stockholders. Based on filings with the SEC as of the date of this report, Aptar has two institutional stockholders who each own between 5% and 10% of our outstanding common stock.
We may encounter increased costs as we reformulate and redesign our product offerings in response to changing customer behaviors, and our efforts may be unsuccessful. Ownership by Certain Significant Stockholders. Based on filings with the SEC as of the date of this report, Aptar has four institutional stockholders who each own between 5% and 11% of our outstanding common stock.
If our effective tax rates were to increase in jurisdictions where we have significant operations, or if the ultimate determination of taxes owed or other tax liability is for an amount in excess of amounts previously accrued, our financial condition and operating results could be materially and adversely affected.
If our effective tax rates were to increase in jurisdictions where we have significant operations, or if the ultimate determination of taxes owed or other tax liability is for an amount in excess of amounts previously accrued, our financial condition and operating results could be materially and adversely affected. Our financial performance could be impacted by loss of royalty revenues.
We continue to invest internally in several larger facility expansions, if our integration efforts, including unlocking synergies, are unsuccessful we may not realize the full potential of the acquisitions and as a result our financial performance may suffer.
We continue to invest internally in several capacity expansions, if our integration efforts, including unlocking synergies, are unsuccessful we may not realize the full potential of the acquisitions and/or investments and as a result our financial performance may suffer.
Although our business is diversified across 10 end markets and many geographies and we believe our diverse business model, coupled with our diverse and global customer base, allow some protection from dependency on any one geographic region, country or even trade route, our diversification efforts may not be successful in insulating our operations from disruptive geopolitical conditions and we do face some risk related to trade policies specific to any country we operate in or to which our customers export their products.
Although our business serves 10 end markets and many geographies and we believe our business model, coupled with our global customer base, allows some protection from dependency on any one geographic region, country or even trade route, our global business model may not be successful in insulating our operations from disruptive geopolitical conditions and we do face some risk related to trade policies specific to any country we operate in or to which our customers export their products.
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements.
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A strengthening U.S. dollar has a dilutive effect on our financial statements.
In addition, our customers may export their finished products using our dispensing mechanisms that were sold in other regions and an adverse geopolitical event may impact the sales of our customers’ products and thus indirectly negatively impact the demand for our dispensing solutions.
In addition, our customers may export their finished products using our dispensing mechanisms that were sold in other regions and an adverse geopolitical event may impact the sales of our customers’ products and thus indirectly negatively impact the demand for our drug and consumer product dosing, dispensing and protection technologies.
Interest rate volatility could increase our borrowing costs. As our fixed rate debt obligations become due, any refinancing or additional borrowings could potentially be under higher interest rates. As interest rates increase, our debt service obligation on refinanced indebtedness will increase, impacting our results of operations and cash flows.
As our fixed rate debt obligations become due, borrowings could potentially be under higher, fixed or variable interest rates. As interest rates increase, our debt service obligation on refinanced indebtedness will increase, impacting our results of operations and cash flows.
We may encounter increased costs as we reformulate and redesign our product offerings in response to the changing regulatory landscape. 14/ATR 2023 Form 10-K Table of Contents Market risks, like the increased cost or limited availability of certain raw material inputs for our products, including post-consumer recycled (PCR) resins, may impede the production, distribution and sale of certain of our customers' products.
We may encounter increased costs as we reformulate and redesign our product offerings in response to the changing regulatory landscape. Market risks, like the increased cost or limited availability of certain raw material inputs for our products, including PCR resins, may impede the production, distribution and sale of certain of our customers' products.
If our integration of acquisitions or significant capital investments fail to generate expected returns, our financial performance may suffer. We continue to pursue growth through acquisitions and equity investments, including the recent iD Scent, Gulf Closures, and Metaphase acquisitions.
If our integration of acquisitions or significant capital investments fail to generate expected returns, our financial performance may suffer. We continue to pursue growth through acquisitions and equity investments, including the recent equity investment in Goldrain.
Future government regulations of healthcare cost containment policies may impact our pharmaceutical sales. Review by governments or private insurers of cost containment policies of the number of drugs and prices thereof that will be paid by their insurance systems could affect future sales to the pharmaceutical industry and thereby adversely affect prices of and demand for our pharmaceutical products.
Review by governments or private insurers of cost containment policies of the number of drugs and prices thereof that will be paid by their insurance systems could affect future sales to the pharmaceutical industry and thereby adversely affect prices of and demand for our pharmaceutical products. Interest rate volatility could increase our borrowing costs.
The use of our intellectual property by someone else without our authorization could reduce or eliminate certain of our competitive advantages, cause us to lose sales or otherwise harm our business.
The use of our intellectual property by someone else without our authorization could reduce or eliminate certain of our competitive advantages, cause us to lose sales or otherwise harm our business. The costs associated with protecting our intellectual property rights could also adversely impact our business.
If we do not successfully manage and execute these initiatives, or if they are inadequate or ineffective, we may fail to achieve the expected benefits, and our business and operations could be adversely affected.
We continue to streamline and reduce our fixed costs in order to increase operating efficiencies. If we do not successfully manage and execute these initiatives, or if they are inadequate or ineffective, we may fail to achieve the expected benefits, and our business and operations could be adversely affected.
Increased global cybersecurity threats and more sophisticated, targeted computer crime could pose a risk to our operations. Increased global information security threats and more sophisticated, targeted computer crime pose a risk to the confidentiality, availability and integrity of our data, operations and infrastructure, as well as the data of our customers.
Increased global information security threats and more sophisticated, targeted computer crime pose a risk to the confidentiality, availability and integrity of our data, operations and infrastructure, as well as the data of our customers. The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks.
To date, we have seen no material impact on our business or operations from these threats; however, we cannot guarantee that our security efforts will prevent unauthorized access or loss of functionality to our or our third-party providers' systems.
We also periodically test our systems for vulnerabilities and regularly rely on third parties to conduct such tests. To date, we have seen no material impact on our business or operations from these threats; however, we cannot guarantee that our security efforts will prevent unauthorized access or loss of functionality to our or our third-party providers' systems.
We are subject to a number of lawsuits and claims that arise in the ordinary course of our business, which include infringement, product liability, commercial, employment, tort, and other litigation. We are also subject to indemnification claims under various contracts. Further, the failure of our products to operate as intended may result in a product liability claim against us.
We are subject to a number of lawsuits and claims that arise in the ordinary course of our business, which include infringement, product liability, commercial, employment, tort, business interruption and other litigation. We are also subject to indemnification claims under various contracts.
Further, we may have to negotiate significant discounts and/or extended financing terms with customers in these situations. If we are unable to collect upon our accounts receivable as they come due in an efficient and timely manner, our business, financial condition or results of operations may be materially adversely affected.
If we are unable to collect upon our accounts receivable as they come due in an efficient and timely manner, our business, financial condition or results of operations may be materially adversely affected.
We continue to assess potential threats, including computer viruses, cyberattacks, ransomware attacks, phishing attacks and other malicious activity, and make investments seeking to reduce the risk of these threats by employing a number of security measures, including employee training, monitoring of our networks and systems, ensuring strong data protection standards including authentication mechanisms are in place and safeguarding our critical information assets. 10/ATR 2023 Form 10-K Table of Contents We also periodically test our systems for vulnerabilities and regularly rely on third parties to conduct such tests.
We continue to assess potential threats, including computer viruses, cyberattacks, ransomware attacks, phishing attacks and other malicious activity, and make investments seeking to reduce the risk of these threats by employing a number of security measures, including employee training, monitoring of our networks and systems, ensuring strong data protection standards including authentication mechanisms are in place and safeguarding our critical information assets.
We believe we maintain adequate levels of product liability insurance coverage and robust quality control systems at our facilitates. However, a product liability claim in excess of our insurance coverage or not covered by existing insurance may materially adversely affect our business, results of operations or cash flows.
However, a product liability claim in excess of our insurance coverage or not covered by existing insurance may materially adversely affect our business, results of operations or cash flows.
Furthermore, a deterioration in the relationship between the U.S. and China which could result in further revisions to laws or regulations or their interpretation and enforcement, increased taxation, trade sanctions, the imposition of import or export duties and tariffs, restrictions on imports or exports, currency revaluations or retaliatory actions, could materially adversely affect our operations and financial condition.
Furthermore, a deterioration in the relationship between the U.S. and other countries which could result in further revisions to laws or regulations or their interpretation and enforcement, increased taxation, trade sanctions, the imposition of import or export duties and tariffs, restrictions on imports or exports, currency revaluations or retaliatory actions, could materially adversely affect our operations and financial condition. 10/ATR 2024 Form 10-K Table of Contents Significant tariffs or other restrictions imposed on foreign imports by the U.S. and related countermeasures taken by impacted foreign countries could have a material adverse effect on our operations and financial results.
Although we currently have relevant licenses regarding our products and services, changes in the sanctions regimes without obtaining necessary licenses could adversely affect our operations in Russia and, as a result, our relationship with certain customers.
Although we currently have relevant licenses regarding our products and services, changes in the sanctions regimes without obtaining necessary licenses could adversely affect our operations in Russia and, as a result, our relationship with certain customers. Additionally, other regional incidents may cause delays in the global supply chain and have the potential to significantly increase shipping costs.
These specific actions did not affect our Consolidated Financial Statements in 2023. We are currently evaluating the impact of this rule on our consolidated results for 2024. We are also subject to examination of our returns and other tax matters by the U.S. Internal Revenue Service and other tax authorities and governmental bodies.
These specific actions did not have a material affect on our results for 2024, nor do we expect a material effect on our results for 2025. We are also subject to examination of our returns and other tax matters by the U.S. Internal Revenue Service and other tax authorities and governmental bodies.
If the customer’s pharmaceutical product is not approved by regulatory bodies or it is not successful on the market, the associated costs may not be recovered. 11/ATR 2023 Form 10-K Table of Contents Our revenue and results of operations may suffer upon the bankruptcy, insolvency or other credit failure of our customers .
If the customer’s pharmaceutical product is not approved by regulatory bodies or it is not successful on the market, the associated costs may not be recovered. Our revenue and results of operations may suffer upon the bankruptcy, insolvency or other credit failure of our customers . As mentioned above, shifting consumer preferences put our customers under pressure in their markets.
Risks Related to Financial, Legal and Regulatory Matters We have foreign currency translation and transaction risks that may materially adversely affect our operating results. A majority of our operations are located outside of the United States. Because of this, movements in exchange rates may have an impact on the translation of the financial statements of our foreign entities.
A majority of our operations are located outside of the United States. Because of this, movements in exchange rates may have an impact on the translation of the financial statements of our foreign entities.
We source certain materials, especially some resins and rubber components for our pharmaceutical segment, from a single source. Any disruption in the supply of these materials could adversely impact our ability to deliver products to our customers. Similarly, we have certain components and products that are manufactured at a single location or from a single machine or mold.
We have many suppliers providing materials to our manufacturing sites. In some cases, we source certain materials, especially some resins and rubber components for our Aptar Pharma segment, from a single source. Any disruption in the supply of the materials that we require could adversely impact our ability to deliver products to our customers.
In difficult environments, we are generally faced with a decline in the utilization rates of our manufacturing facilities due to decreases in product demand. During such periods, our plants may not operate at full capacity and the costs associated with this excess capacity are charged directly to cost of sales.
During such periods, our plants may not operate at full capacity and the costs associated with this excess capacity are charged directly to cost of sales.
General Risk Factors Global climate change and legal, regulatory, or market measures to address climate change, may negatively affect our business, operations and financial results. There is growing concern that the global economy, including the manufacturing industry, will be affected by the impacts of climate change as the frequency and severity of natural disasters increase.
There is growing concern that the global economy, including the manufacturing industry, will be affected by the impacts of climate change as the frequency and severity of natural disasters increase.
Difficult market conditions in the future may adversely affect our utilization rates and consequently our future gross margins, and this, in turn, could have a material negative impact on our business, financial condition and results of operations.
Difficult market conditions in the future may adversely affect our utilization rates and consequently our future gross margins, and this, in turn, could have a material negative impact on our business, financial condition and results of operations. 11/ATR 2024 Form 10-K Table of Contents Our ability to adequately source materials including those from a single supplier or from a single manufacturing location, could adversely impact our ability to deliver our products.
If disputes with our unions arise, or if our unionized workers engage in a strike or other work stoppage, we could experience a significant disruption of operations, which could have a material adverse effect on our business, operating results and financial position. Single sourced materials and manufacturing sites could adversely impact our ability to deliver product.
If disputes with our unions arise, or if our unionized workers or our suppliers engage in a strike or other work stoppage, we could experience a significant disruption of operations, which could have a material adverse effect on our business, operating results and financial position. 12/ATR 2024 Form 10-K Table of Contents We may not achieve the expected benefits from our restructuring initiatives, which could adversely affect our business and operations .
If our customers suffer significant financial difficulty, they may be unable to pay their debts to us timely or at all, which could have a material adverse effect on our results of operations. It is possible that customers may contest their contractual obligations to us under bankruptcy laws or otherwise.
In addition, general economic conditions, competition and other factors may adversely affect the solvency or creditworthiness of our customers. If our customers suffer significant financial difficulty, they may be unable to pay their debts to us timely or at all, which could have a material adverse effect on our results of operations.
If we were held liable for infringement, we could be required to pay damages, obtain licenses or cease making or selling certain products.
We are also from time to time subject to claims from third parties suggesting that we may be infringing on their intellectual property rights. If we were held liable for infringement, we could be required to pay damages, obtain licenses or cease making or selling certain products.
Customer bankruptcies could further adversely affect our net sales and increase our operating expenses by requiring larger provisions for bad debt expense. In addition, even when our contracts with these customers are not contested, if customers are unable to meet their obligations on a timely basis, it could adversely affect our ability to collect receivables.
In addition, even when our contracts with these customers are not contested, if customers are unable to meet their obligations on a timely basis, it could adversely affect our ability to collect receivables. Further, we may have to negotiate significant discounts and/or extended financing terms with customers in these situations.
In difficult market conditions, our fixed costs structure combined with potentially lower revenues may negatively impact our results. Our business is characterized by relatively high fixed costs and, notwithstanding our utilization of third-party manufacturing capacity, most of our production requirements are met by our own manufacturing facilities.
Our business is characterized by relatively high fixed costs and, notwithstanding our utilization of third-party manufacturing capacity, most of our production requirements are met by our own manufacturing facilities. In difficult environments, we are generally faced with a decline in the utilization rates of our manufacturing facilities due to decreases in product demand.
Conversely, a strengthening U.S. dollar has a dilutive effect. In some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. We manage our exposures to foreign exchange principally with forward exchange contracts to economically hedge certain transactions and firm purchase and sales commitments denominated in foreign currencies.
Conversely, a weakening U.S. dollar relative to foreign currencies has an additive translation effect. In some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred.
Our effective tax rate could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, the introduction of new taxes, or changes in tax laws or their interpretations.
Our effective tax rate could be affected by changes in the mix of earnings in countries with differing statutory tax rates, changes in the valuation of deferred tax assets and liabilities, the introduction of new taxes, or changes in tax laws or their interpretations. 14/ATR 2024 Form 10-K Table of Contents Beginning in 2024, various countries applied the Income Inclusion and Qualified Domestic Minimum Top-up Tax rules modeled after the Organization of Economic Cooperation and Development model rules on a global minimum tax.
All of the markets in which we operate are highly competitive and we continue to experience competition in all product lines and segments. Competitors, including privately and publicly held entities that range from regional to international companies, are becoming increasingly credible in the core markets in which we do business.
Competitors, including privately and publicly held entities that range from regional to international companies, are becoming increasingly credible in the core markets in which we do business. We expect the market for our products to remain competitive, as consolidation and/or changing of ownership among our competitors and key customers are increasing in the current economic climate.
Our competitors' design innovation or ability to provide more sustainable products could have an adverse impact on our business. If we are unable to compete successfully, our market share may decline, which could materially adversely affect our results of operations and financial condition.
If we are unable to compete successfully, our market share may decline, which could materially adversely affect our results of operations and financial condition. We must continually introduce new, and enhance existing, products, services and solutions to retain customers and attract new customers.
For example, the EU and the United States are planning new regulations to ban PFAS materials used in the packaging industry. The potential exists for these types of regulations to expand worldwide. Additionally, any failure to comply with environmental laws could result in claims, investigations, penalties or damages, which could materially adversely affect our reputation, business and results of operations.
Additionally, any failure to comply with environmental laws could result in claims, investigations, penalties or damages, which could materially adversely affect our reputation, business and results of operations. Future government regulations of healthcare cost containment policies may impact our pharmaceutical sales.
We expect the market for our products to remain competitive, as consolidation and/or changing of ownership among our competitors and key customers are increasing in the current economic climate. Customers and consumers are increasingly requesting solutions that can be refilled and reused as the market moves toward more sustainable products.
Customers and consumers are increasingly requesting solutions that can be refilled and reused as the market moves toward more sustainable products. Our competitors' design innovation or ability to provide more sustainable products could have an adverse impact on our business.
Although we believe that our relations with our employees are satisfactory, no assurance can be given that this will continue.
The majority of our employees in Europe and Latin America are covered by collective bargaining arrangements made either at the local or national level in their respective countries. Although we believe that our relations with our employees are satisfactory, no assurance can be given that this will continue.
We evaluate the recoverability of goodwill amounts annually, or more frequently when evidence of potential impairment exists. The impairment test is based on several factors requiring judgment.
We have approximately $936.3 million in recorded goodwill at December 31, 2024, and changes in future business conditions could cause this asset to become impaired, requiring write-downs that would reduce our operating income. We evaluate the recoverability of goodwill amounts annually, or more frequently when evidence of potential impairment exists. The impairment test is based on several factors requiring judgment.
The loss of a substantial number of our employees or a prolonged labor dispute could disrupt our business and result in a material adverse effect on our business and operating results. We face strong global competition and our market share could decline.
The loss of a substantial number of our employees or a prolonged labor dispute could disrupt our business and materially affect our business and operating results. In addition, losing key members of our current management team could make it difficult for us to manage our business and meet our objectives.
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Additionally, ongoing conflicts in the Middle East, heightened tensions in the Red Sea and disruption of the Suez Canal shipping channels may cause delays in the global supply chain and have the potential to significantly increase shipping costs. At this time, impacts to our business are minimal.
Added
At this time, impacts to our business are minimal.
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The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks.
Added
If significant tariffs or other restrictions are imposed on foreign imports by the U.S. and related countermeasures are taken by impacted foreign countries, our business, including sales and results of operations, may be adversely affected.
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As mentioned above, shifting consumer preferences put our customers under pressure in their markets. In addition, general economic conditions, competition and other factors may adversely affect the solvency or creditworthiness of our customers.
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In January 2025, during the initial days of President Trump's second term, the U.S. announced the imposition of additional substantial tariffs on imports from various countries, including China, Canada and Mexico, and the subject countries indicated their intention to impose counter measures.
Removed
If our unionized employees were to engage in a strike or other work stoppage, our business, operating results and financial position could be materially adversely affected. The majority of our European and Latin American employees are covered by collective bargaining arrangements made either at the local or national level in their respective countries.
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If implemented, such tariffs and countermeasures could increase the cost of raw materials and components used in our packaging solutions, disrupt our global supply chain and create additional operational challenges.
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Any disruption to the manufacturing process could also adversely impact our ability to deliver products to our customers. We may not achieve the expected benefits from our restructuring initiatives, which could adversely affect our business and operations . We continue to streamline and reduce our fixed costs in order to increase operating efficiencies.
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If further tariffs are imposed on a broader range of imports, or if retaliatory trade measures are enacted by affected countries, we may face higher costs that could require us to raise prices for our products. These factors could reduce demand for our products, result in the loss of customers and harm our competitive position in key markets.
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However, there is no guarantee that our hedging strategy will be effective, and the volatility of currency exchange rates may materially affect our operating results. 12/ATR 2023 Form 10-K Table of Contents We have approximately $963.4 million in recorded goodwill at December 31, 2023, and changes in future business conditions could cause this asset to become impaired, requiring write-downs that would reduce our operating income.
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Additionally, ongoing trade tensions and uncertainty regarding future trade policies could negatively impact global economic conditions and consumer confidence, further affecting our business performance. Increased global cybersecurity threats and more sophisticated, targeted computer crime could pose a risk to our operations.
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We are exposed to risks from lawsuits and claims, including product liability claims, as well as investigations, audits and other proceedings, which may result in substantial costs and expenses or interruption of our normal business operations.
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We face strong global competition and our market share could decline. All of the markets in which we operate are highly competitive and we continue to experience competition in all product lines and segments.
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The costs associated with protecting our intellectual property rights could also adversely impact our business. 13/ATR 2023 Form 10-K Table of Contents We are also from time to time subject to claims from third parties suggesting that we may be infringing on their intellectual property rights.
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Developing new products, services and solutions is complex, requires significant investment and operational costs and may not be profitable, and our investments in new technologies are speculative and may not yield the expected business or financial benefits. In difficult market conditions, our fixed costs structure combined with potentially lower revenues may negatively impact our results.
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We continue to monitor countries' progress toward enactment of the Organization of Economic Cooperation and Development's model rules on a global minimum tax. During 2023, various countries enacted domestic legislation to adopt the minimum tax rules which will be effective for years beginning on or after January 1, 2024.
Added
Similarly, we have certain components and products that are manufactured at a single location or from a single machine or mold. Any disruption to the manufacturing process could also adversely impact our results, financial position and our ability to deliver products to our customers.
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It is possible that customers may contest their contractual obligations to us under bankruptcy laws or otherwise. Customer bankruptcies could further adversely affect our net sales and increase our operating expenses by requiring larger provisions for bad debt expense.
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If disputes with our unions arise, or if our unionized workers engage in a strike or other work stoppage, or if our suppliers engage in a strike or other work stoppage, we could experience a significant disruption of operations.
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Our internal information technology systems may fail or suffer security breaches, loss or leakage of data, and other disruptions, which could disrupt our business or result in the loss of critical and confidential information. The satisfactory performance, reliability and availability of our technology infrastructure is critical to our ability to access data and applications.
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Locally hosted IT as data centers are declining and shutting down and could result in the inability to host our applications without a cloud based solution. Risks Related to Financial, Legal and Regulatory Matters We have foreign currency translation and transaction risks that may materially adversely affect our operating results.
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We manage our exposures to foreign exchange principally with forward exchange contracts to economically hedge certain transactions and firm purchase and sales commitments denominated in foreign currencies. However, there is no guarantee that our hedging strategy will be effective, and the volatility of currency exchange rates may materially affect our operating results.
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Food and Drug Administration (FDA) and by comparable government agencies in other countries.
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Further, the failure of our products to operate as intended may result in a product liability claim against us. We believe we maintain adequate levels of product liability insurance coverage and robust quality control systems at our facilitates.
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For example, the EU and some states in the United States have introduced regulations to ban PFAS materials used in the packaging industry. The potential exists for these types of regulations to expand worldwide.
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We work for years modifying our dispensing device to work in connection with a customer’s drug formulation. As a result of our investment, we from time to time receive royalties from our customers based upon their sales of such product. These contracts typically have a set expiration date.
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Our inability to renew or replace expiring royalty agreements could have a negative impact on our sales and margins. General Risk Factors Global climate change and legal, regulatory, or market measures to address climate change, may negatively affect our business, operations and financial results.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeOur cybersecurity strategy focuses on continued strengthening of our security posture, improvement of security operational efficiencies, and preparedness for evolving business and technology needs including the detection, analysis, and response to known, anticipated or unexpected cybersecurity threats, management of material risks related to cybersecurity threats and resilience against cybersecurity incidents.
Biggest changeOur risk management team works closely with our Information Security Department to continuously evaluate and address cybersecurity risks in alignment with our business and operational needs. 15/ATR 2024 Form 10-K Table of Contents Our cybersecurity strategy focuses on continued strengthening of our security posture, improvement of security operational efficiencies, and preparedness for evolving business and technology needs including the detection, analysis, and response to known, anticipated or unexpected cybersecurity threats, management of material risks related to cybersecurity threats and resilience against cybersecurity incidents.
Security and data privacy awareness and training is provided to new employees and annually for current Aptar employees, which is designed to educate employees on recognizing information security and cybersecurity concerns, how they can help protect the organization and how to inform the cybersecurity team of potential incidents.
Security and data privacy awareness and training is provided to new employees and annually for current Aptar employees, is designed to educate employees on recognizing information security and cybersecurity concerns, how they can help protect the organization and how to inform the cybersecurity team of potential incidents.
Although we have not experienced any material cybersecurity events to date, cybersecurity threats could materially affect our business strategy, results of operations, or financial condition, as further discussed in the risk factor entitled “Increased global cybersecurity threats and more sophisticated, targeted computer crime could pose a risk to our operations” in Part I, Item 1A of this report. 16/ATR 2023 Form 10-K Table of Contents
Although we have not experienced any material cybersecurity events to date, cybersecurity threats could materially affect our business strategy, results of operations, or financial condition, as further discussed in the risk factor entitled “Increased global cybersecurity threats and more sophisticated, targeted computer crime could pose a risk to our operations” in Part I, Item 1A of this report. 16/ATR 2024 Form 10-K Table of Contents
In addition, we maintain cybersecurity insurance as part of our overall insurance portfolio. Management briefs the Audit Committee on a quarterly basis regarding our information security programs. As part of its oversight responsibilities, the Audit Committee regularly discusses and reviews with management, among other items, Aptar’s compliance and cybersecurity programs.
In addition, we maintain cybersecurity insurance as part of our overall insurance portfolio. Management reports to the Audit Committee on a quarterly basis regarding our information security programs. As part of its oversight responsibilities, the Audit Committee regularly discusses and reviews with management, among other items, Aptar’s compliance and cybersecurity programs.
We also have a cyber incident materiality committee, which is a cross functional team that includes various departments across the Company including Finance, Public Relations, Accounting/Controller, Legal and the Director of Information Security.
We also have a cyber incident materiality committee, which is a cross functional team that includes various departments across the Company including Finance, Public Relations, Accounting/Controller, Legal and the Chief Information Security Officer.
Our Vice President and Chief Information Officer is an experienced information technology professional with 34 years of experience in the industry, including oversight of our cybersecurity department and has a degree in Management Information Systems. The Information Security Department ultimately reports to, and regularly informs, our Chief Information Officer and Chief Financial Officer with regard to cybersecurity risks and incidents.
Our Chief Information Officer is an experienced information technology professional with 35 years of experience in the industry, including oversight of our cybersecurity department and has a degree in Management Information Systems. Our Chief Information Security Officer regularly informs our Chief Information Officer and Chief Financial Officer of any cybersecurity risks and incidents.
In addition, our executive management discusses cybersecurity issues quarterly. 15/ATR 2023 Form 10-K Table of Contents Aptar has a detailed incident response plan that provides the process and workflow of communication for escalation of incidents to executive leadership to determine if there is a breach that would warrant further action.
Our Chief Financial Officer is responsible for oversight of our response to cybersecurity incidents, as appropriate. In addition, our executive management discusses cybersecurity issues quarterly. Aptar has a detailed incident response plan that provides the process and workflow of communication for escalation of incidents to executive leadership to determine if there is a breach that would warrant further action.
This team is comprised of full-time information security professionals, is responsible for the implementation of our cybersecurity strategy, including assessing and managing material risks from cybersecurity threats.
In addition, we maintain cybersecurity insurance as part of our overall insurance portfolio. Our Information Security Department, reports to our Chief Information Security Officer who reports to the Chief Information Officer. This team is comprised of full-time information security professionals, is responsible for the implementation of our cybersecurity strategy, including assessing and managing material risks from cybersecurity threats.
We believe this integrated approach allows cybersecurity considerations to be an integral part of our decision-making processes. Our risk management team works closely with our Information Security Department to continuously evaluate and address cybersecurity risks in alignment with our business and operational needs.
We believe this integrated approach allows cybersecurity considerations to be an integral part of our decision-making processes.
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In addition, we maintain cybersecurity insurance as part of our overall insurance portfolio. Our Information Security Department, reports to our Vice President and Chief Information Officer and is headed by our Director of Information Security.
Removed
Our Chief Financial Officer is responsible for oversight of our response to cybersecurity incidents, as appropriate.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe locations of our manufacturing facilities, by geographic region/country, are set forth below: Geographic Region/Country Number of Manufacturing Facilities Aptar Pharma Manufacturing Facilities Aptar Beauty Manufacturing Facilities Aptar Closures Manufacturing Facilities France 12 6 7 1 Germany 6 4 4 1 Rest of Europe 7 2 2 4 North America 9 5 3 6 Latin America 7 1 7 3 China 5 3 2 4 Other Asia 4 1 2 3 Total 50 22 27 22 Our head corporate office is located in Crystal Lake, Illinois.
Biggest changeThe locations of our manufacturing facilities, by geographic region/country, are set forth below: Geographic Region/Country Number of Manufacturing Facilities Aptar Pharma Manufacturing Facilities Aptar Beauty Manufacturing Facilities Aptar Closures Manufacturing Facilities France 11 6 7 0 Germany 6 4 4 1 Rest of Europe/United Kingdom 7 2 2 4 North America 9 5 3 5 Latin America 7 1 6 2 China 5 3 2 4 Other Asia/Middle East 4 1 2 3 Total 49 22 26 19 Our head corporate office is located in Crystal Lake, Illinois.
We manufacture products in 50 locations, with 13 of those facilities serving two segments and four serving all three of our segments as of December 31, 2023.
We manufacture products in 49 locations, with 14 of those facilities serving two segments and two serving all three of our segments as of December 31, 2024.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeAt December 31, 2023, the Plan owned 113,946 shares of our common stock. ISSUER PURCHASES OF EQUITY SECURITIES On April 18, 2019, we announced a share repurchase authorization of up to $350 million of common stock. This authorization replaces previous authorizations and has no expiration date.
Biggest changeISSUER PURCHASES OF EQUITY SECURITIES On October 10, 2024 a new share purchase authorization of up to $500 million of common stock was authorized. This authorization replaces previous authorizations and has no expiration date. We may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions.
While we expect to continue to pay a regular quarterly dividend of $0.41 per share in 2024, the timing, declaration, amount and payment of any future cash dividends are at the discretion of the Board of Directors and will depend on our available cash, working capital, financial condition, results of operations, capital requirements, covenants in our credit facility, applicable law and other factors that the Board of Directors considers relevant.
While we expect to continue to pay a regular quarterly dividend of $0.45 per share in 2025, the timing, declaration, amount and payment of any future cash dividends are at the discretion of the Board of Directors and will depend on our available cash, working capital, financial condition, results of operations, capital requirements, covenants in our credit facility, applicable law and other factors that the Board of Directors considers relevant.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET FOR REGISTRANT’S COMMON EQUITY Our common stock is traded on the New York Stock Exchange under the symbol “ATR”. As of February 5, 2024, there were 152 holders of record of our common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES MARKET FOR REGISTRANT’S COMMON EQUITY Our common stock is traded on the New York Stock Exchange under the symbol “ATR”. As of February 3, 2025, there were 143 holders of record of our common stock.
DIVIDENDS On January 18, 2024, our Board of Directors declared a quarterly cash dividend of $0.41 per share of common stock, which will be paid on February 22, 2024 to stockholders of record as of February 1, 2024. During 2023, we paid $103.7 million in dividends to stockholders.
DIVIDENDS On January 23, 2025, our Board of Directors declared a quarterly cash dividend of $0.45 per share of common stock, which will be paid on February 26, 2025 to stockholders of record as of February 5, 2025. During 2024, we paid $114.1 million in dividends to stockholders.
The following table summarizes our purchases of our securities for the quarter ended December 31, 2023: Period Total Number Of Shares Purchased Average Price Paid Per Share Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs Dollar Value Of Shares That May Yet Be Purchased Under The Plans Or Programs (in millions) 10/1 - 10/31/23 — $ — — $ 70.9 11/1 - 11/30/23 62,869 126.23 62,869 63.0 12/1 - 12/31/23 18,200 127.18 18,200 60.7 Total 81,069 $ 126.44 81,069 $ 60.7 18/ATR 2023 Form 10-K Table of Contents SHARE PERFORMANCE The following graph shows a five year comparison of the cumulative total stockholder return on our common stock as compared to the cumulative total return of the Standard & Poor’s 500 Composite Stock Price Index and to an index of peer group companies we selected.
The following table summarizes our purchases of our securities for the quarter ended December 31, 2024: Period Total Number Of Shares Purchased Average Price Paid Per Share Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs Dollar Value Of Shares That May Yet Be Purchased Under The Plans Or Programs (in millions) 10/1 - 10/31/24 27,200 $ 169.15 27,200 $ 495.4 11/1 - 11/30/24 136,000 171.93 136,000 472.0 12/1 - 12/31/24 54,400 171.89 54,400 462.7 Total 217,600 $ 171.57 217,600 $ 462.7 18/ATR 2024 Form 10-K Table of Contents SHARE PERFORMANCE The following graph shows a five year comparison of the cumulative total stockholder return on our common stock as compared to the cumulative total return of the Standard & Poor’s 500 Composite Stock Price Index and to an index of peer group companies we selected.
The companies included in the peer group are: Albemarle Corporation, Ashland Inc., Berry Global Group, Inc., Catalent, Inc., CCL Industries Inc., Enovis Corporation, ICU Medical, Inc., Ingredion Inc., International Flavors & Fragrances, Inc., McCormick & Company, Inc., Perrigo Company plc, Revvity, Inc., Sealed Air Corporation, Sensient Technologies Corporation, Silgan Holdings, Inc., Sonoco Products Company, Stericycle, Inc., STERIS plc, Teleflex Inc. and West Pharmaceutical Services, Inc.
(included until December 17, 2024, when the company was taken private), CCL Industries Inc., Enovis Corporation, ICU Medical, Inc., Ingredion Inc., International Flavors & Fragrances, Inc., McCormick & Company, Inc., Perrigo Company plc, Revvity, Inc., Sealed Air Corporation, Sensient Technologies Corporation, Silgan Holdings, Inc., Sonoco Products Company, Stericycle, Inc., STERIS plc, Teleflex Inc. and West Pharmaceutical Services, Inc.
During the quarter ended December 31, 2023, the Plan did not purchase any shares of our common stock on behalf of the participants. The Plan sold 6,533 shares of our common stock on behalf of the participants at an average price of $124.57 per share, for an aggregate amount of $814 thousand.
During the quarter ended December 31, 2024, the Plan purchased 2,024 shares of our common stock on behalf of the participants at an average price of $158.87 per share, for an aggregate amount of approximately $322 thousand.
We may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions. During the fourth quarter of 2023, we repurchased approximately 81 thousand shares for approximately $10.3 million.
During the fourth quarter of 2024, we repurchased approximately 218 thousand shares for approximately $37.3 million.
Added
The Plan sold 9,100 shares of our common stock on behalf of the participants at an average price of $163.67 per share, for an aggregate amount of $1.5 million. At December 31, 2024, the Plan owned 101,617 shares of our common stock.
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The companies included in the peer group are: Albemarle Corporation, Ashland Inc., Berry Global Group, Inc., Catalent, Inc.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeAccordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment, including but not limited to: • geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the recent events in the Middle East and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions; 33/ATR 2023 Form 10-K Table of Contents • lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; • economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; • the execution of our fixed cost reduction initiatives, including our optimization initiative; • the availability of raw materials and components (particularly from sole sourced suppliers) as well as the financial viability of these suppliers; • fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs); • significant fluctuations in foreign currency exchange rates or our effective tax rate; • the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate; • financial conditions of customers and suppliers; • consolidations within our customer or supplier bases; • changes in customer and/or consumer spending levels; • loss of one or more key accounts; • our ability to successfully implement facility expansions and new facility projects; • our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases; • changes in capital availability or cost, including rising interest rates; • volatility of global credit markets; • our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired, including contingent consideration valuation; • our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; • direct or indirect consequences of acts of war, terrorism or social unrest; • cybersecurity threats that could impact our networks and reporting systems; • the impact of natural disasters and other weather-related occurrences; • fiscal and monetary policies and other regulations; • changes, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; • changing regulations or market conditions regarding environmental sustainability; • work stoppages due to labor disputes; • competition, including technological advances; • our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; • the outcome of any legal proceeding that has been or may be instituted against us and others; • our ability to meet future cash flow estimates to support our goodwill impairment testing; • the demand for existing and new products; • the success of our customers’ products, particularly in the pharmaceutical industry; • our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; • difficulties in product development and uncertainties related to the timing or outcome of product development; • significant product liability claims; and • other risks associated with our operations.
Biggest changeAccordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment, including but not limited to: • geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the resulting indirect impact on demand from our customers selling their products into these countries, and certain supply chain disruptions; • cybersecurity threats against our systems and/or service providers that could impact our networks and reporting systems; • the availability of raw materials and components (particularly from sole-sourced suppliers for some of our Pharma solutions) as well as the financial viability of these suppliers; • lower demand and asset utilization due to an economic recession either globally or in key markets we operate within; • economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth; 33/ATR 2024 Form 10-K Table of Contents • competition, including technological advances; • significant tariffs and other restrictions on foreign imports imposed by the U.S. and related countermeasures are taken by impacted foreign countries; • the execution of our fixed cost reduction initiatives, including our optimization initiative; • our ability to successfully implement facility expansions and new facility projects; • fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs; • significant fluctuations in foreign currency exchange rates or our effective tax rate; • the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate and cash flow; • financial conditions of customers and suppliers; • consolidations within our customer or supplier bases; • changes in customer and/or consumer spending levels; • loss of one or more key accounts; • our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases; • changes in capital availability or cost, including rising interest rates; • volatility of global credit markets; • our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the businesses we have acquired; • our ability to build out acquired businesses and integrate the product/service offerings of the acquired entities into our existing product/service portfolio; • direct or indirect consequences of acts of war, terrorism or social unrest; • the impact of natural disasters and other weather-related occurrences; • fiscal and monetary policies and other regulations; • changes, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities; • changing regulations or market conditions regarding environmental sustainability; • our ability to retain key members of management and manage labor costs; • work stoppages due to labor disputes; • our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights; • the outcome of any legal proceeding that has been or may be instituted against us and others; • our ability to meet future cash flow estimates to support our goodwill impairment testing; • the demand for existing and new products; • the success of our customers’ products, particularly in the pharmaceutical industry; • our ability to manage worldwide customer launches of complex technical products, particularly in developing markets; • difficulties in product development and uncertainties related to the timing or outcome of product development; • significant product liability claims; and • other risks associated with our operations.
The revolving credit facility also provides mechanics relating to a transition away from designated benchmark rates for other available currencies and the replacement of any such applicable benchmark by a replacement alternative benchmark rate or mechanism for loans made in the applicable currency.
The amended revolving credit facility also provides mechanics relating to a transition away from designated benchmark rates for other available currencies and the replacement of any such applicable benchmark by a replacement alternative benchmark rate or mechanism for loans made in the applicable currency.
A facility fee on the total amount of the revolving credit facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the revolving credit facility and the facility fee percentage may change from time to time depending on changes in our consolidated leverage ratio.
A facility fee on the total amount of the amended revolving credit facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the amended revolving credit facility and the facility fee percentage may change from time to time depending on changes in our consolidated leverage ratio.
As of December 31, 2023, $36.5 million and €40.0 million ($44.2 million) was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of December 31, 2022, no balance was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.
As of December 31, 2023, $36.5 million was utilized under the revolving credit facility in the U.S. and €40.0 million ($44.2 million) under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.
Management applied judgment in determining the fair value of the acquired assets with respect to the acquisitions of Metaphase, iD SCENT and Gulf Closures, including the fair values of acquired intangibles including acquired technology, trademarks and customer relationships.
Management applied judgment in determining the fair value of the acquired assets with respect to the acquisitions of iD SCENT and Gulf Closures, including the fair values of acquired intangibles including acquired technology, trademarks and customer relationships.
We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Please refer to Part 1, Item 1A - Risk Factors included in this Form 10-K for additional risk factors affecting the Company. 34/ATR 2023 Form 10-K Table of Contents
We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Please refer to Part 1, Item 1A - Risk Factors included in this Form 10-K for additional risk factors affecting the Company. 34/ATR 2024 Form 10-K Table of Contents
MD&A is presented in eight sections: Overview, Results of Operations, Liquidity and Capital Resources, Recently Issued Accounting Standards, Critical Accounting Estimates, Operations Outlook and Forward-Looking Statements. MD&A should be read in conjunction with our Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements contained elsewhere in this Annual Report on Form 10-K.
MD&A is presented in seven sections: Overview, Results of Operations, Liquidity and Capital Resources, Recently Issued Accounting Standards, Critical Accounting Estimates, Operations Outlook and Forward-Looking Statements. MD&A should be read in conjunction with our Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements contained elsewhere in this Annual Report on Form 10-K.
Refer to Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for additional information regarding Results of Operations for the year ended December 31, 2022 as compared to the year ended December 31, 2021.
Refer to Part II, Item 7 – Management’s Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for additional information regarding Results of Operations for the year ended December 31, 2023 as compared to the year ended December 31, 2022.
The estimated effect of a 0.5% decrease in each of the expected compensation rates would be a $6.0 million decrease in the PBO ($1.3 million decrease for the domestic plans and $4.7 million decrease for the foreign plans) and a $0.9 million decrease to the net periodic benefit cost.
The estimated effect of a 0.5% decrease in each of the expected compensation rates would be a $5.6 million decrease in the PBO ($1.1 million decrease for the domestic plans and $4.5 million decrease for the foreign plans) and a $0.9 million decrease to the net periodic benefit cost.
Of foreign plan assets, approximately 94% was invested in investment funds, 3% was invested in equity securities, 1% was invested in corporate debt securities, 1% was invested in fixed income securities and 1% was invested in money market funds at December 31, 2023. 32/ATR 2023 Form 10-K Table of Contents The expected long-term rate of return assumptions are determined based on our investment policy combined with expected risk premiums of equities and fixed income securities over the underlying risk-free rate.
Of foreign plan assets, approximately 94% was invested in investment funds, 3% was invested in equity securities, 2% was invested in corporate debt securities, 1% was invested in fixed income securities and 0% was invested in money market funds at December 31, 2024. 32/ATR 2024 Form 10-K Table of Contents The expected long-term rate of return assumptions are determined based on our investment policy combined with expected risk premiums of equities and fixed income securities over the underlying risk-free rate.
Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.3 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.
Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow an additional $1.9 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.
Based on our qualitative and quantitative analysis performed over the reporting units, we determined it was more likely than not that the fair value of these reporting units was greater than their carrying amounts and therefore no impairment of goodwill was recognized during the year ended December 31, 2023.
Based on our qualitative and quantitative analysis performed over the reporting units, we determined it was more likely than not that the fair value of the reporting units was greater than their carrying amounts and therefore no impairment of goodwill was recognized during the year ended December 31, 2024.
The estimated effect of a 0.5% increase in each of the expected compensation rates would be a $6.4 million increase in the PBO ($1.3 million increase for the domestic plans and $5.1 million increase for the foreign plans) and a $1.0 million increase to the net periodic benefit cost.
The estimated effect of a 0.5% increase in each of the expected compensation rates would be a $5.9 million increase in the PBO ($1.1 million increase for the domestic plans and $4.8 million increase for the foreign plans) and a $1.0 million increase to the net periodic benefit cost.
We would recognize such tax expense in our Consolidated Statements of Income and Consolidated Balance Sheets should we change the current indefinite reinvestment assertion on foreign earnings. NET INCOME ATTRIBUTABLE TO APTARGROUP, INC. We reported net income of $284.5 million in 2023 compared to $239.3 million reported in 2022.
We would recognize such tax expense in our Consolidated Statements of Income and Consolidated Balance Sheets should we change the current indefinite reinvestment assertion on foreign earnings. NET INCOME ATTRIBUTABLE TO APTARGROUP, INC. We reported net income of $374.5 million in 2024 compared to $284.5 million reported in 2023.
Credit facility balances are included in notes payable, revolving credit facility and overdrafts on the Consolidated Balance Sheets.
Credit facility balances are included in revolving credit facility and overdrafts on the Consolidated Balance Sheets.
We have historically used cash flow from operations and our revolving and other credit facilities, as needed, as our primary sources of liquidity.
We have historically used cash flow from operations, our revolving and other credit facilities, and proceeds from stock options, as needed, as our primary sources of liquidity.
Based on our current business plan and revenue prospects, we believe that our 2024 operating cash flow will be more than sufficient to fund our working capital needs and outstanding purchase commitments as discussed in Note 20 - Investment in Equity Securities and Note 13 - Commitments and Contingencies as well as lease arrangements as discussed in Note 8 - Lease Commitments.
Based on our current business plan, we believe that our 2025 operating cash flow will be more than sufficient to fund our working capital needs, growth capital investments in our business and outstanding purchase commitments as discussed in Note 20 - Investment in Equity Securities and Note 13 - Commitments and Contingencies as well as lease arrangements as discussed in Note 8 - Lease Commitments.
Our primary pension related assumptions as of December 31, 2023 and 2022 were as follows: Actuarial Assumptions as of December 31, 2023 2022 Discount rate: Domestic plans 4.95 % 5.15 % Foreign plans 3.20 % 3.69 % Expected long ‑ term rate of return on plan assets: Domestic plans 7.00 % 7.00 % Foreign plans 3.23 % 3.53 % Rate of compensation increase: Domestic plans 3.24 % 3.20 % Foreign plans 3.20 % 3.21 % In order to determine the 2024 net periodic benefit cost, we expect to use the discount rates, expected long-term rates of return on plan assets and rates of compensation assumptions as of December 31, 2023.
Our primary pension related assumptions as of December 31, 2024 and 2023 were as follows: Actuarial Assumptions as of December 31, 2024 2023 Discount rate: Domestic plans 5.60 % 4.95 % Foreign plans 3.33 % 3.20 % Expected long ‑ term rate of return on plan assets: Domestic plans 7.00 % 7.00 % Foreign plans 3.22 % 3.23 % Rate of compensation increase: Domestic plans 3.24 % 3.24 % Foreign plans 3.21 % 3.20 % In order to determine the 2025 net periodic benefit cost, we expect to use the discount rates, expected long-term rates of return on plan assets and rates of compensation assumptions as of December 31, 2024.
In 2024, we expect to have financing cash outlays of approximately $458.2 million to fund short- and long-term debt obligations as discussed in Note 7 - Debt, which are expected to be covered by cash on hand or additional borrowings on our revolving credit facility.
In 2025, we expect to have financing cash outlays of approximately $162.3 million to fund short and long term debt obligations as discussed in Note 7 - Debt, which are expected to be covered by cash on hand or additional borrowings on our revolving credit facility.
The estimated effect of a 1% increase in each discount rate would be a $39.1 million decrease in the PBO ($28.4 million for the domestic plans and $10.7 million for the foreign plans) and a $5.3 million decrease in net periodic benefit cost ($4.6 million for the domestic plans and $0.7 million for the foreign plans).
The estimated effect of a 1% increase in each discount rate would be a $35.8 million decrease in the PBO ($25.5 million for the domestic plans and $10.3 million for the foreign plans) and a $4.6 million decrease in net periodic benefit cost ($3.8 million for the domestic plans and $0.8 million for the foreign plans).
Using insights, proprietary design, engineering and science to create dispensing, dosing and protective technologies for many of the world's leading brands, Aptar in turn makes a meaningful difference in the lives, looks, health and homes of millions of patients and consumers around the world.
Using proprietary design, engineering, science and insights or understanding of the end-user to create dispensing, dosing and protective technologies for many of the world's leading brands, Aptar in turn makes a meaningful difference in the lives, health, well-being and homes of millions of patients and consumers around the world.
Our revolving credit facility and certain long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at December 31, 2023 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.46 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 16.06 to 1.00 (1) Definitions of ratios are included as part of the revolving credit facility agreement and the private placement agreements.
Our amended revolving credit facility and certain long-term obligations require us to satisfy certain financial and other covenants including: Requirement Level at December 31, 2024 Consolidated Leverage Ratio (1) Maximum of 3.50 to 1.00 1.08 to 1.00 Consolidated Interest Coverage Ratio (1) Minimum of 3.00 to 1.00 17.43 to 1.00 (1) Definitions of ratios are included as part of the revolving credit facility agreement and the private placement agreements.
The estimated effect of a 1% decrease in each discount rate would be a $49.0 million increase in the PBO ($36.3 million for the domestic plans and $12.7 million for the foreign plans) and a $3.1 million increase in net periodic benefit cost ($2.1 million for the domestic plans and $1.0 million for the foreign plans).
The estimated effect of a 1% decrease in each discount rate would be a $44.3 million increase in the PBO ($32.1 million for the domestic plans and $12.2 million for the foreign plans) and a $3.8 million increase in net periodic benefit cost ($2.7 million for the domestic plans and $1.1 million for the foreign plans).
GAAP, which are referred to as non-U.S. GAAP financial measures. Management may assess our financial results both on a U.S. GAAP basis and on a non-U.S. GAAP basis. We believe it is useful to present these non-U.S.
GAAP, we also present financial information that does not conform to U.S. GAAP, which are referred to as non-U.S. GAAP financial measures. Management may assess our financial results both on a U.S. GAAP basis and on a non-U.S. GAAP basis. We believe it is useful to present these non-U.S.
We also previously removed our indefinite reinvestment assertion with respect to undistributed earnings accumulated in Germany. We also previously removed the indefinite reinvestment assertion for the pre-2020 earnings in Italy, Switzerland and Colombia. We continue to assert indefinite reinvestment with respect to foreign earnings from other countries.
We have previously removed our indefinite reinvestment assertion with respect to the pre-2020 earnings in Italy, Switzerland and Colombia, as well as undistributed earnings in Germany. We continue to assert indefinite reinvestment with respect to foreign earnings from other countries.
Excluding changes in foreign currency rates, depreciation and amortization expense increased by approximately $11.4 million compared to the prior year. Approximately $0.9 million of this increase is due to our acquisitions of Metaphase, iD SCENT, and Gulf Closures.
Excluding changes in foreign currency rates, depreciation and amortization expense increased by approximately $16.1 million compared to the prior year. Approximately $0.3 million of this increase is due to our acquisitions of iD SCENT and Gulf Closures.
The ratio of our Net Debt (interest bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) decreased to 28.3% at December 31, 2023 compared to 33.3% at December 31, 2022. See the reconciliation under "Non-U.S. GAAP Measures".
The ratio of our Net Debt (interest bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) decreased to 24.4% at December 31, 2024 compared to 28.3% at December 31, 2023. See the reconciliation under "Non-U.S.
Year Ended December 31, 2023 Aptar Pharma Aptar Beauty Aptar Closures Total Reported Net Sales Growth 12 % 4 % (5) % 5 % Currency Effects (1) (2) % (2) % (1) % (2) % Acquisitions — % — % (1) % — % Core Sales Growth 10 % 2 % (7) % 3 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Year Ended December 31, 2024 Aptar Pharma Aptar Beauty Aptar Closures Total Reported Net Sales Growth 8 % (3) % 2 % 3 % Currency Effects (1) — % — % 1 % — % Acquisitions — % — % — % — % Core Sales Growth 8 % (3) % 3 % 3 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
The remaining increase relates to higher capital spending during the current and prior years to support our growth strategy, including several new manufacturing facilities commencing operations during 2023. Depreciation and amortization as a percentage of net sales increased to 7.1% in 2023 compared to 7.0% in the prior year.
The majority of the remaining increase relates to higher capital spending during the prior years to support our growth strategy, including new manufacturing facilities commencing production during 2024. Depreciation and amortization as a percentage of net sales increased to 7.3% in 2024 compared to 7.1% in the prior year.
Cash and equivalents increased to $223.6 million at December 31, 2023 from $141.7 million at December 31, 2022 while t otal short and long-term interest bearing debt of $1.14 billion at December 31, 2023 decreased from $1.18 billion at December 31, 2022.
Cash and equivalents increased to $223.8 million at December 31, 2024 from $223.6 million at December 31, 2023 while t otal short and long-term interest bearing debt of $1.03 billion at December 31, 2024 decreased from $1.14 billion at December 31, 2023.
Year Ended December 31, 2023 Food Beverage Personal Care Other (2) Total Reported Net Sales Growth (9) % 14 % (15) % 2 % (5) % Currency Effects (1) — % (2) % (1) % — % (1) % Acquisitions — % (7) % — % — % (1) % Core Sales Growth (9) % 5 % (16) % 2 % (7) % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Year Ended December 31, 2024 Food Beverage Personal Care Other (2) Total Reported Net Sales Growth 4 % 3 % (4) % 2 % 2 % Currency Effects (1) 1 % 1 % 2 % 1 % 1 % Acquisitions — % (1) % — % — % — % Core Sales Growth 5 % 3 % (2) % 3 % 3 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures." Reported net sales increased approximately 4% in 2023 to $1.27 billion compared to $1.22 billion in 2022.
Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures." Reported net sales increased approximately 8% in 2024 to $1.64 billion compared to $1.52 billion in 2023.
Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures" . Reported net sales decreased approximately 5% in 2023 to $698.8 million compared to $738.5 million in 2022.
Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures". Reported net sales increased approximately 2% in 2024 to $714.0 million compared to $698.8 million in 2023.
See the reconciliation under "Non-U.S. GAAP Measures". NET SALES For the year ended December 31, 2023, reported net sales increased 5% to $3.49 billion from $3.32 billion a year ago. The average U.S. dollar exchange rate weakened compared to the euro and other major currencies in which we operate, resulting in a positive currency translation impact of 2%.
See the reconciliation under "Non-U.S. GAAP Measures". NET SALES For the year ended December 31, 2024, reported net sales increased 3% to $3.58 billion from $3.49 billion a year ago. The average U.S. dollar exchange rate remained fairly consistent compared to the euro and other major currencies in which we operate, resulting in no currency translation impact during 2024.
In thousands, except percentages APTAR PHARMA SEGMENT Year Ended December 31, 2023 2022 % Change 2023 vs. 2022 Net Sales $ 1,520,993 $ 1,361,256 11.7 % Adjusted EBITDA (1) 502,633 441,622 13.8 Adjusted EBITDA margin (1) 33.0 % 32.4 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
In thousands, except percentages APTAR PHARMA SEGMENT Year Ended December 31, 2024 2023 % Change 2024 vs. 2023 Net Sales $ 1,643,152 $ 1,520,993 8.0 % Adjusted EBITDA (1) 568,371 502,633 13.1 Adjusted EBITDA margin (1) 34.6 % 33.0 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
In thousands, except percentages APTAR BEAUTY SEGMENT Year Ended December 31, 2023 2022 % Change 2023 vs. 2022 Net Sales $ 1,267,697 $ 1,222,535 3.7 % Adjusted EBITDA (1) 163,716 151,887 7.8 Adjusted EBITDA margin (1) 12.9 % 12.4 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
In thousands, except percentages APTAR BEAUTY SEGMENT Year Ended December 31, 2024 2023 % Change 2024 vs. 2023 Net Sales $ 1,225,730 $ 1,267,697 (3.3) % Adjusted EBITDA (1) 159,909 163,716 (2.3) Adjusted EBITDA margin (1) 13.0 % 12.9 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
Aptar expects earnings per share for the first quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition-related costs, to be in the range of $1.10 to $1.18 and this guidance is based on an effective tax rate range of 24.5% to 26.5%.
OPERATIONS OUTLOOK Aptar expects earnings per share for the first quarter of 2025, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition-related costs, to be in the range of $1.11 to $1.19 and this guidance is based on an effective tax rate range of 25% to 27%.
We have historically evaluated our goodwill for impairment annually as of October 1 or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below it's carrying value, in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other.” Due to the realignment of the Beauty and Closures segments, management determined it appropriate to calculate the fair value of both reporting units and compare with their associated carrying amounts as of January 1, 2023.
We have historically evaluated our goodwill for impairment annually as of October 1 or more frequently if events or circumstances change that would, more likely than not, reduce the fair value of a reporting unit below it's carrying value, in accordance with Accounting Standards Codification (“ASC”) Topic 350, “Intangibles - Goodwill and Other.” As we performed our annual goodwill impairment assessment, due to events or circumstances that were unfavorable for injectables, and the passage of time from our prior Step 1 analysis over the other pharma reporting unit, management determined it appropriate to calculate the fair value of the reporting units and compare with their associated carrying amounts as of October 1, 2024.
SELLING, RESEARCH & DEVELOPMENT AND ADMINISTRATIVE Our selling, research & development and administrative expenses (“SG&A”) increased approximately 4% or $21.5 million to $565.8 million in 2023 compared to $544.3 million in 2022. Excluding changes in foreign currency rates, SG&A increased by approximately $14.7 million compared to the prior year.
SELLING, RESEARCH & DEVELOPMENT AND ADMINISTRATIVE Our selling, research & development and administrative expenses (“SG&A”) increased approximately 3% or $16.4 million to $582.2 million in 2024 compared to $565.8 million in 2023. Excluding changes in foreign currency rates, SG&A increased by approximately $18.1 million compared to the prior year.
We evaluate our goodwill for impairment at the reporting unit level on an annual basis, or whenever indicators of impairment exist. We have determined that our Aptar Beauty and Aptar Closures business segments each represent a reporting unit.
GOODWILL In accordance with current accounting standards, goodwill has an indefinite life and is not amortized. We evaluate our goodwill for impairment at the reporting unit level on an annual basis, or whenever indicators of impairment exist. We have determined that our Aptar Beauty and Aptar Closures business segments each represent a reporting unit.
Of domestic plan assets, approximately 48% was invested in equities, 26% was invested in fixed income securities, 11% was invested in hedge funds, 8% was invested in infrastructure securities, 5% was invested in real estate securities and 1% was invested in money market funds, at December 31, 2023.
Of domestic plan assets, approximately 50% was invested in equities, 25% was invested in fixed income securities, 11% was invested in hedge funds, 8% was invested in infrastructure securities, 4% was invested in real estate securities and 2% was invested in money market funds, at December 31, 2024.
Restructuring costs for the years ended December 31, 2023 and 2022 are as follows: Year Ended December 31, 2023 2022 Restructuring Initiatives by Plan: Optimization initiative $ 45,445 $ 6,224 Prior year initiatives (441) 373 Total Restructuring Initiatives $ 45,004 $ 6,597 Restructuring Initiatives by Segment Aptar Pharma $ 4,852 $ — Aptar Beauty 20,683 5,539 Aptar Closures 17,927 1,058 Corporate & Other 1,542 — Total Restructuring Initiatives $ 45,004 $ 6,597 OPERATING INCOME Operating income increased approximately $24.7 million or 7% to $404.0 million in 2023 compared to $379.3 million in 2022.
Restructuring costs for the years ended December 31, 2024 and 2023 are as follows: Year Ended December 31, 2024 2023 Restructuring Initiatives by Plan: Optimization initiative $ 13,019 $ 45,445 Prior year initiatives (17) (441) Total Restructuring Initiatives $ 13,002 $ 45,004 Restructuring Initiatives by Segment Aptar Pharma $ 589 $ 4,852 Aptar Beauty 8,041 20,683 Aptar Closures 3,835 17,927 Corporate & Other 537 1,542 Total Restructuring Initiatives $ 13,002 $ 45,004 OPERATING INCOME Operating income increased approximately $92.5 million or 23% to $496.5 million in 2024 compared to $404.0 million in 2023.
As of December 31, 2023, we have $963.4 million of goodwill, which is allocated as follows: In Thousands Reporting Unit Balance at December 31, 2023 Pharma $ 175,606 Injectables 171,211 Active Material Science Solutions 161,630 Beauty 287,096 Closures 167,875 Total $ 963,418 We believe that the accounting estimates related to determining the fair value of our reporting units is a critical accounting estimate because: (1) it is highly susceptible to change from period to period as it requires management to make assumptions about the future cash flows for each reporting unit over several years, and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet as well as our results of operations could be material.
As of December 31, 2024, we have $936.3 million of goodwill, which is allocated as follows: 30/ATR 2024 Form 10-K Table of Contents In Thousands Reporting Unit Balance at December 31, 2024 Pharma $ 166,681 Injectables 164,220 Active Material Science Solutions 157,334 Beauty 281,285 Closures 166,736 Total $ 936,256 We believe that the accounting estimates related to determining the fair value of our reporting units is a critical accounting estimate because: (1) it is highly susceptible to change from period to period as it requires management to make assumptions about the future cash flows for each reporting unit over several years, and (2) the impact that recognizing an impairment would have on the assets reported on our balance sheet as well as our results of operations could be material.
Together, these changes led to our Adjusted EBITDA margin improving from 11.7% in 2022 to 14.8% during 2023. 25/ATR 2023 Form 10-K Table of Contents CORPORATE & OTHER In addition to our three reporting segments, Aptar assigns certain costs to “Corporate & Other,” which is presented separately in Note 18 — Segment Information of the Notes to the Consolidated Financial Statements.
This led to our Adjusted EBITDA margin improving from 14.8% in 2023 to 16.0% during 2024. CORPORATE & OTHER In addition to our three reporting segments, Aptar assigns certain costs to “Corporate & Other,” which is presented separately in Note 18 — Segment Information of the Notes to the Consolidated Financial Statements.
Core sales of our proprietary drug delivery systems to the prescription drug market increased 26% on continued strong demand for our allergic rhinitis, asthma and emergency medicines and central nervous system devices.
Core sales of our proprietary drug delivery systems to the prescription drug market increased 15% on continued strong demand for our allergic rhinitis, central nervous system and emergency medicine systems along with higher customer royalties.
As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies.
Core sales growth is calculated as current period core sales less prior period core sales divided by prior period core sales multiplied by a hundred. As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies.
SG&A as a percentage of net sales, however, decreased to 16.2% in 2023 compared to 16.4% in the prior year. DEPRECIATION AND AMORTIZATION Depreciation and amortization expense increased approximately 6% or $14.9 million to $248.6 million in 2023 compared to $233.7 million in 2022.
SG&A as a percentage of net sales increased to 16.3% in 2024 compared to 16.2% in the prior year. DEPRECIATION AND AMORTIZATION Depreciation and amortization expense increased approximately 6% or $15.2 million to $263.8 million in 2024 compared to $248.6 million in 2023.
Our determination of fair value involved judgment and the use of significant estimates and assumptions, including assumptions regarding the projected revenue growth rates, projected EBITDA margins, the terminal growth factor, as well as the discount rate to calculate estimated future cash flows. We believe that our assumptions used in discounting future cash flows are appropriate.
We estimated the fair values of the affected businesses based upon the present value of their estimated future cash flows. Our determination of fair value involved judgment and the use of significant estimates and assumptions, including assumptions regarding the projected revenue growth rates, projected EBITDA margins, as well as the discount rate to calculate estimated future cash flows.
Further, investors are urged to review and consider carefully the adjustments made by management to the most directly comparable U.S. GAAP financial measure to arrive at these non-U.S. GAAP financial measures. See the reconciliation under "Non-U.S. GAAP Measures" below. For the year ended December 31, 2023, reported sales increased 5% to $3.49 billion from $3.32 billion a year ago.
Further, investors are urged to review and consider carefully the adjustments made by management to the most directly comparable U.S. GAAP financial measure to arrive at these non-U.S. GAAP financial measures. See the reconciliation under "Non-U.S. GAAP Measures" below. A reconciliation of core sales growth to reported net sales growth, the most directly comparable U.S.
At December 31, 2023, the discount rates for our domestic and foreign plans were 4.95% and 3.20%, respectively.
At December 31, 2024, the discount rates for our domestic and foreign plans were 5.60% and 3.33%, respectively.
Year Ended December 31, 2023 2022 Amount in Thousands $ % of Net Sales Amount in Thousands $ % of Net Sales Net sales $ 3,487,450 100.0 % $ 3,322,249 100.0 % Cost of sales (exclusive of depreciation and amortization shown below) 2,224,051 63.8 2,158,411 65.0 Selling, research & development and administrative 565,783 16.2 544,262 16.4 Depreciation and amortization 248,593 7.1 233,706 7.0 Restructuring initiatives 45,004 1.3 6,597 0.2 Operating income 404,019 11.6 379,273 11.4 Interest expense (40,418) (1.2) (40,827) (1.2) Other (expense) income 11,224 0.3 (3,742) (0.1) Income before income taxes 374,825 10.7 334,704 10.1 Net Income $ 284,176 8.1 % $ 239,555 7.2 % Effective tax rate 24.2 % 28.4 % Adjusted EBITDA margin (1) 20.3 % 18.6 % (1) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Reported Net Sales.
Year Ended December 31, 2024 2023 Amount in Thousands $ % of Net Sales Amount in Thousands $ % of Net Sales Net sales $ 3,582,890 100.0 % $ 3,487,450 100.0 % Cost of sales (exclusive of depreciation and amortization shown below) 2,227,381 62.2 2,224,051 63.8 Selling, research & development and administrative 582,226 16.3 565,783 16.2 Depreciation and amortization 263,784 7.3 248,593 7.1 Restructuring initiatives 13,002 0.4 45,004 1.3 Operating income 496,497 13.8 404,019 11.6 Interest expense (43,898) (1.2) (40,418) (1.2) Other (expense) income 17,166 0.5 11,224 0.3 Income before income taxes 469,765 13.1 374,825 10.7 Net Income $ 374,178 10.4 % $ 284,176 8.1 % Effective tax rate 20.3 % 24.2 % Adjusted EBITDA margin (1) 21.6 % 20.3 % (1) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Reported Net Sales.
RESTRUCTURING INITIATIVES During the third quarter of 2022, we began an initiative to better leverage our fixed cost base through growth and cost reduction measures. For the years ended December 31, 2023 and 2022, we recognized $45.4 million and $6.2 million, respectively, of restructuring costs related to this initiative.
RESTRUCTURING INITIATIVES For the years ended December 31, 2024 and 2023, we recognized $13.0 million and $45.4 million, respectively, of restructuring costs related to our initiative to better leverage our fixed cost base through growth and cost reduction measures. The cumulative expense incurred as of December 31, 2024 was $64.7 million.
In thousands, except percentages APTAR CLOSURES SEGMENT Year Ended December 31, 2023 2022 % Change 2023 vs. 2022 Net Sales $ 698,760 $ 738,458 (5.4) % Adjusted EBITDA (1) 103,693 86,109 20.4 Adjusted EBITDA margin (1) 14.8 % 11.7 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
Adjusted EBITDA margin also improved to 13.0% in 2024 compared to 12.9% in 2023. 24/ATR 2024 Form 10-K Table of Contents In thousands, except percentages APTAR CLOSURES SEGMENT Year Ended December 31, 2024 2023 % Change 2024 vs. 2023 Net Sales $ 714,008 $ 698,760 2.2 % Adjusted EBITDA (1) 114,142 103,693 10.1 Adjusted EBITDA margin (1) 16.0 % 14.8 % (1) Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.
Our COS percentage was positively impacted by an improved mix of our higher-margin Pharma product sales compared to the same period in 2022. We also benefited from the moderation of inflationary cost increases.
Our COS percentage was positively impacted by an improved mix of our higher-margin pharma services and product sales compared to the same period in 2023. We also benefited from improved operational performance and cost management initiatives, which more than offset an increase in input costs.
Changes in currency rates positively affected net sales by 2%, while the acquisition of Metaphase did not have a significant impact during 2023. Therefore, core sales increased 10% in 2023 compared to the prior year.
Changes in currency rates negatively impacted net sales by 1%, while the acquisition of Gulf Closures did not have a significant impact on the 2024 results. Therefore, core sales increased 3% in 2024 compared to the prior year.
We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives. 26/ATR 2023 Form 10-K Table of Contents Year Ended December 31, 2023 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 3,487,450 $ 1,520,993 $ 1,267,697 $ 698,760 $ — $ — Reported net income $ 284,176 Reported income taxes 90,649 Reported income before income taxes 374,825 388,415 59,210 33,615 (70,370) (36,045) Adjustments: Restructuring initiatives 45,004 4,852 20,683 17,927 1,542 Net investment gain (1) (1,413) (1,413) Realized gain on investments included in net investment gain above 4,188 4,188 Transaction costs related to acquisitions 480 — 424 56 — Adjusted earnings before income taxes 423,084 393,267 80,317 51,598 (66,053) (36,045) Interest expense 40,418 40,418 Interest income (4,373) (4,373) Adjusted earnings before net interest and taxes (Adjusted EBIT) 459,129 393,267 80,317 51,598 (66,053) — Depreciation and amortization 248,593 109,366 83,399 52,095 3,733 — Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) $ 707,722 $ 502,633 $ 163,716 $ 103,693 $ (62,320) $ — Reported net income margin (Reported net income / Reported Net Sales) 8.1 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 20.3 % 33.0 % 12.9 % 14.8 % (1) Net investment gain represents the change in fair value of our investment in PCT (see Note 20 - Investment in Equity Securities for further details). 27/ATR 2023 Form 10-K Table of Contents Year Ended December 31, 2022 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 3,322,249 $ 1,361,256 $ 1,222,535 $ 738,458 $ — $ — Reported net income $ 239,555 Reported income taxes 95,149 Reported income before income taxes 334,704 346,995 65,850 32,185 (72,199) (38,127) Adjustments: Restructuring initiatives 6,597 — 5,539 1,058 — Net investment loss (1) 2,110 2,110 Realized gain on investments included in net investment loss above 1,213 1,213 Transaction costs related to acquisitions 231 231 — — — Adjusted earnings before income taxes 344,855 347,226 71,389 33,243 (68,876) (38,127) Interest expense 40,827 40,827 Interest income (2,700) (2,700) Adjusted earnings before net interest and taxes (Adjusted EBIT) 382,982 347,226 71,389 33,243 (68,876) — Depreciation and amortization 233,706 94,396 80,498 52,866 5,946 — Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) $ 616,688 $ 441,622 $ 151,887 $ 86,109 $ (62,930) $ — Reported net income margin (Reported net income / Reported Net Sales) 7.2 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 18.6 % 32.4 % 12.4 % 11.7 % (1) Net investment loss represents the change in fair value of our investment in PCT (see Note 20 - Investment in Equity Securities for further details).
We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives. 26/ATR 2024 Form 10-K Table of Contents Year Ended December 31, 2024 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 3,582,890 $ 1,643,152 $ 1,225,730 $ 714,008 $ — $ — Reported net income $ 374,178 Reported income taxes 95,587 Reported income before income taxes 469,765 447,353 68,797 54,832 (69,420) (31,797) Adjustments: Restructuring initiatives 13,002 589 8,041 3,835 537 Curtailment gain related to restructuring initiatives (1,851) — — (1,851) — Net investment gain (1) (1,713) (1,713) Transaction costs related to acquisitions 140 — 140 — — Adjusted earnings before income taxes 479,343 447,942 76,978 56,816 (70,596) (31,797) Interest expense 43,898 43,898 Interest income (12,101) (12,101) Adjusted earnings before net interest and taxes (Adjusted EBIT) 511,140 447,942 76,978 56,816 (70,596) — Depreciation and amortization 263,784 120,429 82,931 57,326 3,098 — Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) $ 774,924 $ 568,371 $ 159,909 $ 114,142 $ (67,498) $ — Reported net income margin (Reported net income / Reported Net Sales) 10.4 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 21.6 % 34.6 % 13.0 % 16.0 % (1) Net investment gain represents the change in fair value of our investment in PCT (see Note 20 - Investment in Equity Securities for further details). 27/ATR 2024 Form 10-K Table of Contents Year Ended December 31, 2023 Consolidated Aptar Pharma Aptar Beauty Aptar Closures Corporate & Other Net Interest Net Sales $ 3,487,450 $ 1,520,993 $ 1,267,697 $ 698,760 $ — $ — Reported net income $ 284,176 Reported income taxes 90,649 Reported income before income taxes 374,825 388,415 59,210 33,615 (70,370) (36,045) Adjustments: Restructuring initiatives 45,004 4,852 20,683 17,927 1,542 Net investment loss (1) (1,413) (1,413) Realized gain on investments included in net investment loss above 4,188 4,188 Transaction costs related to acquisitions 480 — 424 56 — Adjusted earnings before income taxes 423,084 393,267 80,317 51,598 (66,053) (36,045) Interest expense 40,418 40,418 Interest income (4,373) (4,373) Adjusted earnings before net interest and taxes (Adjusted EBIT) 459,129 393,267 80,317 51,598 (66,053) — Depreciation and amortization 248,593 109,366 83,399 52,095 3,733 — Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA) $ 707,722 $ 502,633 $ 163,716 $ 103,693 $ (62,320) $ — Reported net income margin (Reported net income / Reported Net Sales) 8.1 % Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales) 20.3 % 33.0 % 12.9 % 14.8 % (1) Net investment loss represents the change in fair value of our investment in PCT (see Note 20 - Investment in Equity Securities for further details).
Resolution of these uncertainties in a manner inconsistent with management's expectations could have a material impact on our financial condition and operating results. 31/ATR 2023 Form 10-K Table of Contents At December 31, 2023 and 2022, we had $133.4 million and $114.8 million, respectively, of deferred tax assets net of valuation allowance on our balance sheet, a significant portion of which is related to net operating losses and other tax attribute carryforwards.
At December 31, 2024 and 2023, we had $138.8 million and $133.4 million, respectively, of deferred tax assets net of valuation allowance on our balance sheet, a significant portion of which is related to net operating losses and other tax attribute carryforwards.
Financing activities utilized $171.6 million of cash during 2023, compared to $162.1 million during 2022. During 2023, we paid $103.7 million of dividends, purchased $47.6 million of our common stock that was placed into treasury stock and received proceeds of $54.0 million on stock option exercises.
During 2024, we paid $114.1 million of dividends, purchased $68.6 million of our common stock that was placed into treasury stock and received proceeds of $54.8 million on stock option exercises.
Net Debt to Net Capital Reconciliation December 31, 2023 December 31, 2022 Revolving credit facility and overdrafts $ 81,794 $ 3,810 Current maturities of long-term obligations, net of unamortized debt issuance costs 376,426 118,981 Long-Term Obligations, net of unamortized debt issuance costs 681,188 1,052,597 Total Debt $ 1,139,408 $ 1,175,388 Less: Cash and equivalents $ 223,643 $ 141,732 Net Debt $ 915,765 $ 1,033,656 Total Stockholders' Equity $ 2,321,298 $ 2,068,204 Net Debt 915,765 1,033,656 Net Capital $ 3,237,063 $ 3,101,860 Net Debt to Net Capital 28.3 % 33.3 % 28/ATR 2023 Form 10-K Table of Contents Free Cash Flow Reconciliation December 31, 2023 December 31, 2022 Net Cash Provided by Operations $ 575,239 $ 478,617 Capital Expenditures (312,342) (310,427) Proceeds from Government Grants — 27,795 Free Cash Flow $ 262,897 $ 195,985 LIQUIDITY AND CAPITAL RESOURCES Given our current level of leverage relative to others in our industry and our ability to consistently generate significant cash flow from operations, we believe we are in a strong financial position to meet our business requirements in the foreseeable future.
Net Debt to Net Capital Reconciliation For the Year Ended December 31, 2024 December 31, 2023 Revolving credit facility and overdrafts $ 176,035 $ 81,794 Current maturities of long-term obligations, net of unamortized debt issuance costs 162,250 376,426 Long-Term Obligations, net of unamortized debt issuance costs 688,066 681,188 Total Debt $ 1,026,351 $ 1,139,408 Less: Cash and equivalents $ 223,844 $ 223,643 Short-term investments 2,337 — Net Debt $ 800,170 $ 915,765 Total Stockholders' Equity $ 2,485,924 $ 2,321,298 Net Debt 800,170 915,765 Net Capital $ 3,286,094 $ 3,237,063 Net Debt to Net Capital 24.4 % 28.3 % 28/ATR 2024 Form 10-K Table of Contents Free Cash Flow Reconciliation For the Year Ended December 31, 2024 December 31, 2023 Net Cash Provided by Operations $ 643,413 $ 575,239 Capital Expenditures (276,481) (312,342) Free Cash Flow $ 366,932 $ 262,897 LIQUIDITY AND CAPITAL RESOURCES Given our current level of leverage and our ability to generate cash flow from operations, we believe we are in a strong financial position to meet our operational commitments in the foreseeable future.
Year Ended December 31, 2023 Prescription Drug Consumer Health Care Injectables Active Material Science Solutions Digital Health Total Reported Net Sales Growth 27 % 20 % (4) % (21) % — % 12 % Currency Effects (1) (1) % (3) % (2) % (1) % (4) % (2) % Acquisitions — % — % (1) % — % — % — % Core Sales Growth 26 % 17 % (7) % (22) % (4) % 10 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Digital Health currently does not represent a significant percentage of the total Pharma sales. 23/ATR 2024 Form 10-K Table of Contents Year Ended December 31, 2024 Prescription Drug Consumer Health Care Injectables Active Material Science Solutions Digital Health Total Reported Net Sales Growth 15 % (3) % 1 % 13 % 37 % 8 % Currency Effects (1) — % (1) % — % — % 1 % — % Acquisitions — % — % — % — % — % — % Core Sales Growth 15 % (4) % 1 % 13 % 38 % 8 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
In the event that customer demand decreases significantly for a prolonged period of time and adversely impacts our cash flows from operations, we would have the ability to restrict and significantly reduce our capital expenditure levels and share repurchases, as well as evaluate our acquisition strategy.
Due to uncertain macroeconomic conditions, including rising interest rates and inflation, if there was prolonged decrease in customer demand that would adversely impact our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and share repurchases, as well as reevaluate our acquisition strategy.
We believe the following critical accounting policies affect our more significant judgments and estimates used in preparation of our Consolidated Financial Statements.
We believe the following critical accounting policies affect our more significant judgments and estimates used in preparation of our Consolidated Financial Statements. Management has discussed the development and selection of these critical accounting estimates with the Audit Committee and the Audit Committee has reviewed our disclosure relating to it in this MD&A.
There was no significant impact from our acquisitions of Metaphase, iD SCENT, and Gulf Closures on our consolidated net sales during 2023. Core sales, which exclude acquisitions and changes in foreign currency rates, increased by 3% in 2023 compared to 2022.
There was no significant impact from our acquisitions on our consolidated net sales during 2024. Therefore, core sales, which exclude acquisitions and changes in foreign currency rates, also increased by 3% in 2024 compared to 2023. Volume growth, especially for products in our prescription, material sciences and home care applications, had a positive impact on our core sales during 2024.
Excluding changes in foreign currency rates, operating income increased by approximately $14.7 million in 2023 compared to 2022. Strong Aptar Pharma segment sales growth along with our lower COS percentage and SG&A leverage discussed above more than compensated for our higher restructuring costs.
Excluding changes in foreign currency rates, operating income increased by approximately $91.6 million in 2024 compared to 2023. Strong sales growth from our Pharma segment along with our lower COS percentage and lower restructuring costs drove the improvement in 2024. Operating income as a percentage of net sales increased to 13.8% in 2024 compared to 11.6% for the prior year.
Our primary uses of cash are to invest in equipment and working capital for the continued growth of our business, including facilities that are necessary to support our growth, pay quarterly dividends to stockholders, make acquisitions and repurchase shares of our common stock.
Our primary uses of cash are to invest in equipment, capacity expansions and working capital for the continued growth of our business to achieve our strategic objectives, as well as paying quarterly dividends to stockholders, investing in new businesses and repurchasing shares of our common stock.
Strong core sales growth for our proprietary drug delivery systems to the prescription drug and consumer health care markets more than compensated for lower sales to the injectables and active material science solutions markets.
As there were no significant impacts from changes in currency rates or acquisitions, core sales also increased 8% in 2024 when compared to 2023. Strong core sales growth for our drug delivery systems to the prescription drug and active material science solutions markets more than compensated for lower sales to the consumer health care market.
GAAP measure, can be found under "Net Sales" below. 2023 HIGHLIGHTS • First full year following segment re-alignment: Aptar Pharma, Aptar Beauty and Aptar Closures • Reported sales grew 5% and core sales increased 3% • Reported earnings per share increased 18% to $4.25 • Reported net income increased 19% to $284 million • Adjusted EBITDA increased 15% to $708 million • 30th consecutive year of paying an increased annual dividend 20/ATR 2023 Form 10-K Table of Contents RESULTS OF OPERATIONS The following table sets forth the Consolidated Statements of Income and the related percentages of net sales for the periods indicated.
GAAP measure, can be found under "Net Sales" below. 2024 HIGHLIGHTS • Reported and core sales grew 3%, with annual sales of $3.6 billion, driven by favorable product mix and volume growth • Delivered 30% diluted earnings per share growth and achieved 18% adjusted earnings per share growth • Net income grew 32% to $375 million • Net cash provided by operations increased 12% and free cash flow increased 40% • 2024 was our 31st consecutive year of paying an annually increasing dividend 20/ATR 2024 Form 10-K Table of Contents RESULTS OF OPERATIONS The following table sets forth the Consolidated Statements of Income and the related percentages of net sales for the periods indicated.
At October 1, 2023, our goodwill for the Injectables and Active Material Science Solutions reporting units were $166.1 million and $158.7 million, respectively. A 15% decrease in the estimated fair value of the Injectables and Active Material Science Solutions would not have resulted in a different conclusion.
We believe that our assumptions used in discounting future cash flows are appropriate. At October 1, 2024, our goodwill for the injectables and other pharma reporting units were $172.4 million and $177.9 million, respectively. A 15% decrease in the estimated fair value of the injectables and other pharma reporting units would not have resulted in a different conclusion.
Refer to Part II, Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of our Annual Report on Form 10-K for the fiscal year ended December 31, 2022 for additional information regarding cash flows for the year ended December 31, 2022 as compared to the year ended December 31, 2021. 29/ATR 2023 Form 10-K Table of Contents On June 30, 2021, we entered into an amended and restated multi-currency revolving credit facility (the "revolving credit facility") with a syndicate of banks to replace the then-existing facility maturing July 2022 (the "prior credit facility") and to amend and restate the unsecured term loan facility extended to our wholly-owned UK subsidiary under the prior credit facility (as amended, the "amended term facility").
Refer to Part II, Item 7 – Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 for additional information regarding cash flows for the year ended December 31, 2023 as compared to the year ended December 31, 2022.
Corporate & Other expenses in 2023 decreased to $62.3 million compared to $62.9 million in 2022. This expense decrease is mainly due to realized gains on the sale of PCT shares related to our PureCycle investment. Our results include approximately $4.2 million and $1.2 million realized gains on sales of PCT shares for 2023 and 2022, respectively.
Corporate & Other expenses in 2024 increased to $67.5 million compared to $62.3 million of expense in 2023. Our 2024 results include approximately $2.2 million of foreign currency gains while 2023 includes approximately $4.2 million of realized gains on sales of PCT shares.
(2) Other includes beauty, home care and healthcare markets. Adjusted EBITDA for 2023 increased approximately 20% to $103.7 million compared to $86.1 million in 2022. Our profitability was positively impacted by a focus on operational improvements and containing costs within our new segment structure.
(2) Other includes beauty, home care and healthcare markets. Adjusted EBITDA for 2024 increased approximately 10% to $114.1 million compared to $103.7 million in 2023. Our profitability was positively impacted by the higher sales in 2024 along with operational improvements and cost containment initiatives. These improvements more than compensate for a negative resin pass-through impact of $2.3 million.
Core sales to the home care markets decreased 22% over 2022 mainly due to lower demand from our air care and surface cleaner customers. 24/ATR 2023 Form 10-K Table of Contents Year Ended December 31, 2023 Personal Care Beauty Home Care Total Reported Net Sales Growth (5) % 12 % (21) % 4 % Currency Effects (1) (2) % (2) % (1) % (2) % Acquisitions — % — % — % — % Core Sales Growth (7) % 10 % (22) % 2 % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Year Ended December 31, 2024 Personal Care Beauty Home Care Total Reported Net Sales Growth 1 % (8) % 10 % (3) % Currency Effects (1) 1 % — % 1 % — % Acquisitions — % — % — % — % Core Sales Growth 2 % (8) % 11 % (3) % (1) Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.
Of this increase, $1.5 million relates to incremental SG&A costs in 2023 due to our acquisitions of Metaphase, iD SCENT, and Gulf Closures. Improvements from our overhead cost management initiatives during 2023 were more than offset by higher compensation costs, including accruals related to our current short-term and long-term incentive compensation programs, along with higher travel costs.
Of this increase, $0.4 million relates to incremental SG&A costs in 2024 due to our acquisitions of iD SCENT and Gulf Closures. Improvements from our overhead cost management initiatives during 2024 were offset by increased investment in research and development, particularly in pharma, to support our innovation and higher non-cash stock-based compensation expense.
The estimated impact of the changes to the assumptions as noted in the table above on our 2024 net periodic benefit cost is expected to be an increase of approxi mately $1.5 million . OPERATIONS OUTLOOK Looking to the first quarter, we intend to build on our positive momentum from the previous year and anticipate starting the year off strong.
The estimated impact of the changes to the assumptions as noted in the table above on our 2025 net periodic benefit cost is expected to be a decrease of approxi mately $2.6 million .
The 17% core sales growth in the consumer health care market was driven by higher demand for our nasal decongestant, saline rinses, eye care and cough and cold solutions.
Core sales to the consumer health care market declined 4% as higher demand for our eye care solutions was offset by lower sales of nasal saline and cough and cold products due to a soft 2023-2024 cold and flu season and customer inventory management.
In 2023, our operations provided approximately $575.2 million in net cash flow compared to $478.6 million in 2022. Cash flow from operations is primarily derived from earnings before depreciation and amortization. The increase in 2023 cash flow from operations compared to 2022 is primarily attributable to improved earnings and better working capital management.
GAAP Measures." In 2024, our operations provided approximately $643.4 million in net cash flow compared to $575.2 million in 2023. Cash flow from operations is primarily derived from improved net income generation year over year.
At December 31, 2023, with the exceptions identified below, we continued to assert indefinite reinvestment of foreign earnings from Aptar's foreign operations. We do not have a balance of foreign earnings that will be subject to U.S. tax upon repatriation under the currently enacted U.S. tax laws.
We do not have a balance of foreign earnings that will be subject to U.S. tax upon repatriation under the currently enacted U.S. tax laws. We continually analyze our global working capital requirements as well as local country operation needs in developing our repatriation plans.
During the fourth quarter of 2023, we reached a $6.6 million settlement for disputed amounts with our insurance company to recover for losses caused by a fire at our facility in Annecy, France (the 'Annecy Settlement'). $3.5 million of the $15 million increase is due to the change in fair value of our PureCycle investment.
Offsetting these favorable impacts was a $6.6 million settlement we received during 2023 for disputed amounts with our insurance company to recover for losses caused by a fire at our facility in Annecy, France. PROVISION FOR INCOME TAXES The reported effective tax rate for 2024 and 2023 was 20.3% and 24.2%, respectively.
Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures." 23/ATR 2023 Form 10-K Table of Contents Reported net sales increased approximately 12% in 2023 to $1.52 billion compared to $1.36 billion in 2022.
Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures." Reported net sales decreased approximately 3% in 2024 to $1.23 billion compared to $1.27 billion in 2023. Core sales also decreased 3% as there were no material changes in currency rates or impact from our acquisition of iD SCENT.
The revolving credit facility can be drawn in various currencies including USD, EUR, GBP, and CHF to the equivalent of $600 million, which may be increased by up to $300 million subject to the satisfaction of certain conditions.
The revolving credit facility is available in the U.S. and to our wholly-owned UK subsidiary and can be drawn in various currencies including USD, EUR, GBP, and CHF.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

5 edited+0 added−0 removed2 unchanged
Biggest changeYear Ended December 31, 2023 Buy/Sell Contract Amount (in thousands) Average Contractual Exchange Rate Min / Max Notional Volumes EUR / USD $ 13,024 1.0798 13,024 - 20,581 EUR / BRL 12,302 5.3469 11,751 - 12,302 USD / EUR 5,187 0.9253 1,417 - 5,187 EUR / THB 4,915 37.8869 4,734 - 4,915 CHF / EUR 4,491 1.0487 2,294 - 4,491 USD / CNY 3,600 7.1337 2,100 - 3,980 CZK / EUR 2,771 0.0408 2,771 - 6,959 MXN / USD 2,000 0.0569 2,000 - 3,500 THB / EUR 1,012 0.0264 0 - 1,012 GBP / EUR 704 1.1516 407 - 1,071 EUR / MXN 664 19.0128 664 - 1,318 CHF / USD 179 1.1226 166 - 179 Total $ 50,849 As of December 31, 2023, we have recorded the fair value of foreign currency forward exchange contracts of $0.4 million in prepaid and other and $0.2 million in accounts payable, accrued and other liabilities in the Consolidated Balance Sheets.
Biggest changeYear Ended December 31, 2024 Buy/Sell Contract Amount (in thousands) Average Contractual Exchange Rate Min / Max Notional Volumes EUR / USD $ 14,407 1.0734 14,407 - 17,118 EUR / BRL 9,530 6.2435 9,530 - 10,217 USD / EUR 8,135 0.9386 7.225 - 10,148 EUR / CNY 5,978 7.7354 4,297 - 5,978 MXN / USD 5,500 0.0498 5,500 - 12,000 USD / CNY 4,710 7.1177 2,000 - 4,710 EUR / MXN 4,159 21.8187 4,159 - 4,236 EUR / THB 3,950 37.0481 3,950 - 5,377 EUR / CHF 3,880 0.9328 0 - 3,880 CZK / EUR 3,069 0.0396 3,069 - 13,247 EUR / CZK 2,650 25.1446 0 - 2,650 THB / EUR 1,463 0.0277 0 - 1,463 USD / MXN 1,000 20.1828 1,000 - 2,000 GBP / EUR 752 1.2002 752 - 829 CHF / USD 293 1.1453 0 - 1,409 EUR / GBP 179 0.8339 179 - 636 USD / GBP 148 0.7805 148 - 430 CZK / USD 119 0.0420 0 - 119 Total $ 69,922 As of December 31, 2024, we have recorded the fair value of foreign currency forward exchange contracts of $0.6 million in prepaid and other and $0.6 million in accounts payable, accrued and other liabilities in the Consolidated Balance Sheets.
The table below provides information as of December 31, 2023 about our forward currency exchange contracts. The majority of the contracts expire before the end of the first quarter of 2024.
The table below provides information as of December 31, 2024 about our forward currency exchange contracts. The majority of the contracts expire before the end of the first quarter of 2025.
This USD/EUR swap agreement exchanged $203 million of fixed-rate 3.60% USD debt to €200 million of fixed-rate 2.5224% EUR debt. The fair value of this net investment hedge is $22.2 million and is reported in accounts payable, accrued and other liabilities in the Consolidated Balance Sheets. 35/ATR 2023 Form 10-K Table of Contents
This USD/EUR swap agreement exchanged $203 million of fixed-rate 3.60% USD debt to €200 million of fixed-rate 2.5224% EUR debt. The fair value of this net investment hedge is $11.9 million and is reported in accounts payable, accrued and other liabilities in the Consolidated Balance Sheets. 35/ATR 2024 Form 10-K Table of Contents
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements.
Our primary foreign exchange exposure is to the euro, but we have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A strengthening U.S. dollar has a dilutive effect on our financial statements.
Conversely, a strengthening U.S. dollar has a dilutive effect. Additionally, in some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. Any changes in exchange rates on such inter-country sales may impact our results of operations.
Conversely, a weakening U.S. dollar relative to foreign currencies has an additive translation effect. Additionally, in some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. Any changes in exchange rates on such inter-country sales may impact our results of operations.

Other ATR 10-K year-over-year comparisons