Aptar reports strong gains from cosmetics and fragrances

Dispensing specialist AptarGroup has reported its best ever quarterly results and earmarks its cosmetics and fragrance division as a key driver for sales growth.

Group sales for the second quarter were up 18 percent to $614.9m, compared to $552.9m in the corresponding period last year – a figure that was positively impacted by currency exchange rates by approximately 10 percent.

For the full six months sales to June 30 sales rose from $1.03bn to £1.91bn, an increase of 15.5 percent.

Sales from the beauty and home care division, which account for approximately 10 percent of the group sales, rose by 17 percent, a figure that was again positively impacted by currency translation to the tune of 9 percent.

All divisions report top line growth

“Each segment reported strong top line growth and our consolidated sales before currency effects increased 8 percent,” said president and CEO Peter Pfeiffer, who also noted that the consumer health care and food and beverage categories had also performed well.

Although Pfeiffer noted that beauty and home care had recorded a significant segment revenue increase, he also underlined the fact that the division’s profit margins were negatively impacted by resin cost increases as well as higher professional fees.

For the quarter net incomes rose from $46.69m to $51.29m, an increase of 9.8 percent, while for the full six months, the increase was $85.85m to $95.75m, an increase of 11.5 percent.

Slower growth forecast and Pfeiffer steps down as CEO

Looking ahead to the rest of the financial year, the company said that it expects the performance to be more in line with long-term ‘normalized’ growth rates, indicating that the performance will slow in the current, third quarter.

The company also announced that Pfeiffer will retire at the end of 2011, but he will continue to serve on the board of directors for the AptarGroup.

Pfeiffer will be replaced by Stephen Hagge, who is currently executive vice president and COO. He has served in his current position since January 2008 and served as CFO from 1993 to 2008.