(ATR) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to Aptar's 2024 First Quarter Conference Call. (Operator Instructions) Introducing today's conference call is Ms. Marry Skafidas, Senior Vice President, Investor Relations, and Communications. Please go ahead.

女士們先生們，謝謝你們的支持。歡迎參加 Aptar 2024 年第一季電話會議。 （操作員說明）今天的電話會議由負責投資者關係和通訊的高級副總裁 Marry Skafidas 女士介紹。請繼續。

Thank you. Hello, everyone, and thanks for being with us today. Joining me on today's call are Stephan Tanda, President and CEO; and Bob Kuhn, Executive Vice President, and CFO. Our press release and accompanying slide deck have been posted on our website under the Investor Relations page. During this call, we will be discussing certain non-GAAP financial measures.

謝謝。大家好，感謝您今天和我們在一起。與我一起參加今天電話會議的還有總裁兼執行長 Stephan Tanda；以及執行副總裁兼財務長鮑伯‧庫恩 (Bob Kuhn)。我們的新聞稿和隨附的幻燈片已發佈在我們網站的投資者關係頁面下。在本次電話會議中，我們將討論某些非公認會計準則財務指標。

These measures are reconciled to the most directly comparable GAAP financial measure and the reconciliations are set forth in the press release. Please refer to the press release disseminated yesterday for reconciliations of non-GAAP measures to the most comparable GAAP measures discussed during this earnings call. As always, we will also post a replay of this call on our website.

這些指標與最直接可比較的公認會計準則財務指標進行了調節，並在新聞稿中列出了調節情況。請參閱昨天發布的新聞稿，以了解非公認會計準則衡量標準與本次財報電話會議中討論的最具可比性的公認會計準則衡量標準的對帳情況。像往常一樣，我們也將在我們的網站上發布本次通話的重播。

And now I would like to turn the conference call over to Stephan.

現在我想把電話會議轉給史蒂芬。

Thank you, Marry, and good morning, everyone. We appreciate you joining us on the call today. I will begin my remarks by highlighting our first quarter results. Later in the call, Bob Kuhn, our CFO, will provide additional details on key drivers for the quarter.

謝謝你，瑪麗，大家早安。我們感謝您今天加入我們的電話會議。我將首先強調我們第一季的業績。在稍後的電話會議中，我們的財務長 Bob Kuhn 將提供有關本季度關鍵驅動因素的更多詳細資訊。

Starting on Slide 3. For the first quarter, I'm pleased to report that Aptar achieved core sales growth of 5% and delivered adjusted EPS of $1.26, a more than 30% increase over the prior year quarter. Strong demand for our Pharma segment's proprietary drug delivery systems, and improved performance for the injectables unit as well as the recovery in North American consumer end markets contributed positively to our quarterly results. Our Pharma segment, continued to see robust sales of our proprietary drug delivery systems with high single-digit core sales growth in the quarter following more than 30% core growth in the first quarter of 2023.

從投影片 3 開始。對我們製藥部門專有給藥系統的強勁需求、注射部門性能的改善以及北美消費者終端市場的復甦對我們的季度業績做出了積極貢獻。我們的製藥部門的專有給藥系統的銷售持續強勁，繼 2023 年第一季核心銷售額成長超過 30% 後，本季核心銷售額實現高個位數成長。

Demand was broad-based with growth in every region and across several end market categories from emergency medicines, through allergy treatments, and central nervous system therapeutics. As a reminder, our proprietary portfolio of drug delivery systems is expected to grow within our 7% to 11% long-term core sales range target also this year after strong double-digit core sales growth in 2023. The injectables unit saw a marked improvement over the prior year quarter as the ERP system implementation headwind from the first quarter of 2023 did not repeat, and demand for elastomeric components for the biologics market continue to grow nicely.

需求基礎廣泛，各地區和多個終端市場類別均成長，從急救藥物到過敏治療和中樞神經系統治療。提醒一下，繼2023 年核心銷售額實現強勁的兩位數增長之後，我們的專有給藥系統組合預計今年也將在7% 至11% 的長期核心銷售目標範圍內增長。著改善由於 2023 年第一季以來 ERP 系統實施的逆風沒有重演，生物製劑市場對彈性體組件的需求持續良好成長。

2024 continues to be a build-out year for injectables as this final phases of the capacity expansions announced in [2020] for France and the U.S. come online and are expected to be validated for commercialization in early 2025. In our Beauty segment, first quarter core sales growth was basically flat year-over-year with a challenging comparison of a strong first quarter 2023 that was driven by exceptional sales in Europe for fragrance dispensing.

2024 年仍然是注射劑的擴張年，因為[2020]法國和美國宣布的產能擴張的最後階段已上線，預計將於 2025 年初進行商業化驗證。持平，與2023 年第一季的強勁成長相比具有挑戰性，這一成長是由歐洲香水分配的出色銷售所推動的。

As a reminder, last year, market growth was driven by a boom in fragrance launches post COVID. As previously mentioned, we expect continued growth for fragrance dispensing solutions for the year but at a more measured pace. Even as sales in Europe normalized, adjusted EBITDA margins for the region were well within the Beauty segment's long-term EBITDA margin range. Turning now to North America. While some end markets remain soft. Overall, the region is showing clear signs that the widespread destocking is coming to an end.

提醒一下，去年，市場成長是由新冠疫情後香水上市熱潮所推動的。如前所述，我們預計今年香料分配解決方案將持續成長，但成長速度將更加謹慎。即使歐洲銷售正常化，該地區調整後的 EBITDA 利潤率仍遠在美容部門的長期 EBITDA 利潤率範圍內。現在轉向北美。儘管一些終端市場依然疲軟。總體而言，該地區顯示出明顯的跡象，表明廣泛的去庫存即將結束。

We continue to expect that recovery will not be linear and will be different end market by end market across our Beauty and Closure segments. Our focus on footprint rationalization and reducing fixed costs remains a top priority in 2024. Over the last several quarters, we have improved margins. As a reminder, since 2022, we initiated formal cost reduction programs in several European countries, including 2 social plans in France.

我們仍然預計，復甦不會是線性的，並且我們的美容和瓶蓋細分市場的各個終端市場的復甦將有所不同。我們對足跡合理化和降低固定成本的關注仍然是 2024 年的首要任務。提醒一下，自 2022 年以來，我們在多個歐洲國家啟動了正式的成本削減計劃，其中包括法國的 2 個社會計劃。

We are reducing the Beauty segment's European workforce by about 5%. And as previously mentioned, the closing of a facility in France that serves closures is expected to be finalized by midyear. This is in addition to the facility that was closed last year in North America. Additionally, quarter-over-quarter, we have reduced selling, general and administrative of an SG&A -- as a percentage of sales by 50 basis points.

我們將美容部門的歐洲勞動力減少約 5%。如同先前所提到的，法國一家負責關閉服務的設施的關閉預計將在年中完成。這是繼去年關閉的北美工廠之外的另一個舉措。此外，與上一季相比，我們將銷售、一般和行政管理費用（SG&A）減少了 50 個基點，佔銷售額的百分比。

Looking ahead in the second half of the year, we plan to close our manufacturing operations in Argentina for beauty and for closures but maintain our pharma manufacturing operations in the country. We will continue to review and streamline our footprint to increase operational leverage while meeting market demand. Now moving to Slide 4, highlighting recent corporate awards and recognitions. We firmly believe operating in a sustainable manner and developing more sustainable product solution is an important competitive advantage for Aptar. As a reflection of our progress during the quarter, we were named one of Barron's most sustainable U.S. companies for the sixth consecutive year, ranked #29 out of 100 companies for 2024.

展望下半年，我們計劃關閉在阿根廷的美容和關閉製造業務，但保留我們在該國的製藥製造業務。我們將繼續審查和精簡我們的足跡，以提高營運槓桿，同時滿足市場需求。現在轉到投影片 4，重點介紹最近的企業獎項和認可。我們堅信，以可持續的方式運作並開發更永續的產品解決方案是 Aptar 的重要競爭優勢。為了反映我們在本季的進展，我們連續第六年被《巴倫周刊》評為最具永續發展能力的美國公司之一，在 2024 年 100 家公司中排名第 29 位。

CDP, formerly known as the Carbon Disclosure Project, also means that as a supplier engagement leader for the fourth consecutive year due to our contributions to emission reductions throughout the value chain, a recognition that is highly valued by many of our customers. Lastly, Capital magazine identified Aptar as one of the 2024 best employers in France where we are now #14 in the health care and pharmaceuticals category.

CDP，以前稱為碳揭露項目，也意味著我們連續第四年成為供應商參與領先者，因為我們對整個價值鏈的減排做出了貢獻，這一認可得到了我們許多客戶的高度重視。最後，《Capital》雜誌將 Aptar 評為 2024 年法國最佳雇主之一，目前我們在醫療保健和藥物類別中排名第 14 位。

Before I turn the call over to Bob to share further details on quarter 1, I want to speak about innovation and highlight recent technologies and product launches as shown on Slide 5. Starting with several launches in our Pharma segment, our Airless+ system is the drug delivery solution used to treat rosacea, recently approved by the National Medical Products Administration in China. Our proprietary ophthalmic squeeze dispenser is used for AbbVie's Refresh brand of an over-the-counter lubricant eye drop treatment in the U S.

在我將電話轉給鮑勃分享第一季的更多細節之前，我想談談創新並重點介紹幻燈片5 中所示的最新技術和產品發布。我們的無氣+ 系統是藥物用於治療紅斑痤瘡的輸送溶液最近獲得中國國家藥品監督管理局批准。我們專有的眼科擠壓分配器用於美國艾伯維 (AbbVie) 的 Refresh 品牌非處方潤滑眼藥水治療。

Next, our PureHale technology is used to dispense Frida Baby’s ultra-fine, natural sterile saline mist in children's cough and cold. Finally, in Turkey, our nasal spray pump is used to deliver a new allergic rhinitis treatment. Turning to Beauty, Coty’s new Marc Jacobs, Daisy Wild fragrance features our fragrance pump, custom overcap, and green colored dip-tube.

接下來，我們的 PureHale 技術用於分配 Frida Baby 的超細天然無菌鹽水霧，用於治療兒童咳嗽和感冒。最後，在土耳其，我們的鼻噴泵用於提供新的過敏性鼻炎治療方法。說到美容，Coty 的新款 Marc Jacobs、Daisy Wild 香水採用了我們的香水泵、客製化頂蓋和綠色汲取管。

Aptar’s recyclable Airless dispensing system is the delivery solution for Avene’s dermo-cosmetic rosacea lotion . Our reloadable airless technology is featured on a skin care launch by Chinese beauty brand, Zhiben. And our fully recyclable lotion pump is featured on a new men’s skin care line in the U.S.

Aptar 的可回收無氣分配系統是雅漾皮膚化妝品紅斑痤瘡乳液的輸送解決方案。我們的可重複裝載無氣技術在中國美容品牌知本推出的護膚品中得到了應用。我們完全可回收的乳液泵出現在美國的全新男士護膚系列中。

Moving to Closures. Our sports cap is the dispensing solution for PepsiCo's new Gatorade Water. And our mono-material, tamper evident closure is featured on the line of Voss water, both found here in the U.S. Our fully recyclable tube top is used for Unilever's St. Ives brand skin scrub. Finally, our tamper-evident, snap-top closure that features a customizable, in-molded scoop is featured on Nutrapharm’s protein supplement in Latin America.

轉向關閉。我們的運動帽是百事公司新款佳得樂水的分配解決方案。我們的單一材料、防篡改封口是 Voss 水系列的特色，兩者均產自美國。最後，我們的防竊啟按扣式封口配有可客製化的模內成型勺，是 Nutrapharm 在拉丁美洲的蛋白質補充劑的特色。

Now I would like to turn the call over to Bob.

現在我想把電話轉給鮑伯。

Thank you, Stephan, and good morning, everyone. Starting on Slide 6, I would like to summarize the quarter. Our reported sales increased 6%. This included a currency translation benefit of approximately 1%. Therefore, core sales grew 5%, primarily due to strong growth in Pharma's proprietary drug delivery systems, and improved injectable sales as well as in recovering North American market. As shown on Slide 7, we reported first quarter adjusted earnings per share of $1.26, which is a 31% increase over the prior year's adjusted EPS. During the quarter, we achieved adjusted EBITDA of $179 million, which increased from the prior year's first quarter by 16%, driven by expanding margins in all 3 segments. Improved operational performance and a lower tax rate led to a higher earnings per share result versus the range provided in our outlook.

謝謝你，史蒂芬，大家早安。從投影片 6 開始，我想總結一下這個季度。我們報告的銷售額成長了 6%。其中包括約 1% 的貨幣換算收益。因此，核心銷售額成長了 5%，這主要是由於 Pharma 專有給藥系統的強勁成長、注射銷售的改善以及北美市場的復甦。如投影片 7 所示，我們報告第一季調整後每股收益為 1.26 美元，比上年調整後每股收益成長 31%。在本季度，我們實現了 1.79 億美元的調整後 EBITDA，比去年第一季成長了 16%，這主要得益於所有 3 個部門的利潤率不斷擴大。營運績效的改善和稅率的降低導致每股收益高於我們展望中提供的範圍。

Turning to some of the details by segment for the quarter. Our Pharma segment's core sales increased 13% due to volume growth, especially in our proprietary drug delivery systems, and elastomeric components. Looking at sales in the Pharma segment by market, we will start breaking out our proprietary drug delivery systems, which performed extremely well in the quarter. Prescription core sales increased 10%, driven by strong sales of allergic rhinitis, asthma, central nervous system therapeutics and emergency medicines.

轉向本季按細分市場劃分的一些詳細資訊。由於銷售成長，我們製藥部門的核心銷售額成長了 13%，尤其是我們專有的藥物輸送系統和彈性體組件。按市場劃分的製藥領域的銷售情況，我們將開始突破我們的專有藥物輸送系統，該系統在本季度表現非常出色。受過敏性鼻炎、氣喘、中樞神經系統治療藥物和急救藥品強勁銷售的推動，核心處方藥銷售額成長了 10%。

Core sales for Consumer health care increased 2%, due to higher demand for nasal saline and nasal decongestants solutions, which more than offset the decline in dermal. Injectable Core sales increased 54% over the prior year quarter which was adversely impacted by an ERP system implementation, affecting operations and shipping days, which did not repeat.

由於對鼻鹽水和鼻腔減充血劑溶液的需求增加，消費者保健品的核心銷售額增加了 2%，這足以抵消真皮銷售額的下降。可注射核心銷售額比去年同期增長了 54%，這受到 ERP 系統實施的不利影響，影響了營運和運輸天數，但這種情況沒有重複。

We saw increases in several end markets, including elastomeric components for biologics and small molecules. Core sales for our active material science solutions improved in the quarter, increasing 2% with returning demand for our products used on probiotics and oral solid dose applications. Pharma's adjusted EBITDA margin was 32%, a more than 1 point improvement from the prior year's quarter.

我們看到幾個終端市場的成長，包括生物製劑和小分子的彈性體組件。隨著益生菌和口服固體劑量應用產品的需求回升，我們的活性材料科學解決方案的核心銷售額在本季度有所改善，增加了 2%。製藥公司調整後的 EBITDA 利潤率為 32%，比去年同期提高了 1 個百分點以上。

Turning to our Beauty segment. Core sales decreased 1% in the quarter. As anticipated, sales of our fragrance dispensing solutions slowed after a period of rapid growth in 2023. Volume growth for beauty increased but was offset by resin pass-throughs. Core sales for the beauty market were flat in the quarter. Overall, difficult comparisons for prestige and mass fragrance dispensing solutions in the prior year quarter contributed to the muted results. Regionally, sales in North America showed signs of recovery with strong facial skin care sales.

轉向我們的美容部分。本季核心銷售額下降 1%。正如預期的那樣，我們的香水分配解決方案的銷售在經歷了 2023 年的快速增長期後放緩。本季美容市場的核心銷售持平。總體而言，去年同期對高端香水分配解決方案和大眾香水分配解決方案的艱難比較導致了業績不佳。從地區來看，北美地區的銷售出現復甦跡象，臉部保養品銷售強勁。

Core sales for the personal care market decreased 4% due to widespread market softness, primarily due to the sun care applications. Home Care core sales increased 2%, driven by sales in North America and Europe.

由於防曬護理應用市場普遍疲軟，個人護理市場的核心銷售量下降了 4%。受北美和歐洲銷售的推動，家庭護理核心銷售額成長 2%。

This segment's adjusted EBITDA margin for the quarter was approximately 13%. The margin improvement was due to improved operational performance, along with our continued focus on cost management. The Closures segment's core sales increased by 1% compared with the prior year's quarter due to an improving North American market with increased personal care and home care sales.

該部門本季調整後 EBITDA 利潤率約為 13%。利潤率的提高歸因於營運績效的改善以及我們對成本管理的持續關注。由於北美市場的改善以及個人護理和家庭護理銷售額的增加，瓶蓋部門的核心銷售額與去年同期相比增長了 1%。

The positive impact from the improving North American market was offset by lower beverage sales in Europe as customers continue to transition to a new environmentally friendly closure. When looking at sales by market for closures, food core sales increased 3%. This includes strong tooling sales in North America for food closure capacity expansions in the first quarter. Strong growth in our dry spices and food protection products contributed positively to the results, while North America and Europe led regionally.

由於客戶繼續轉向新的環保瓶蓋，歐洲飲料銷售的下降抵消了北美市場改善的正面影響。以市場劃分的瓶蓋銷售額來看，食品核心銷售額成長了 3%。這包括第一季北美用於食品封口產能擴張的強勁工具銷售。我們的乾香料和食品保護產品的強勁成長對業績做出了積極貢獻，而北美和歐洲在該地區處於領先地位。

Beverage core sales decreased 4%, primarily due to market timing around customer conversions to tethered caps in compliance with European regulations. Core sales for personal care closures increased 2% after an extended period of decline. Regionally, rebounding demand in North America and Latin America had a positive impact on the quarter. In our fourth category, which includes beauty, home care and health care, core sales decreased 5%, due mainly to a decrease in beauty closures. The segment's adjusted EBITDA margin was 15% for the quarter, a slight increase over the same period last year.

飲料核心銷售量下降 4%，主要是由於客戶根據歐洲法規轉換為限制上限的市場時機。個人護理瓶蓋的核心銷售額在經歷了長期下降後增加了 2%。從地區來看，北美和拉丁美洲的需求反彈對該季度產生了積極影響。在我們的第四個類別（包括美容、家庭護理和醫療保健）中，核心銷售額下降了 5%，主要是由於美容店關門數量減少。該部門本季調整後 EBITDA 利潤率為 15%，較去年同期略有成長。

In Q1 2024, cash flow from operations was approximately $92 million. Free cash flow was approximately $17 million for the quarter. In the first quarter of 2024, we had capital expenditures of approximately $76 million, the majority of which were in our Pharma segment for capacity expansions in North America, Europe, and Asia. Reported depreciation and amortization expense increased 9% over the prior year quarter to approximately $64 million or 7% of sales.

2024 年第一季度，營運現金流約為 9,200 萬美元。本季自由現金流約 1700 萬美元。 2024 年第一季度，我們的資本支出約為 7,600 萬美元，其中大部分用於製藥部門，用於北美、歐洲和亞洲的產能擴張。報告的折舊和攤銷費用比去年同期增加 9%，達到約 6,400 萬美元，佔銷售額的 7%。

Moving to Slide 8, which summarizes our outlook for the second quarter. We anticipate our strong momentum to continue and expect second quarter adjusted earnings per share, excluding any restructuring expenses, acquisition costs, and changes in the unrealized fair value of equity investments to be in the range of $1.30 to $1.38 per share. The estimated tax rate range for the second quarter is 22% to 24%. We are expecting currencies to have a small positive impact compared to the prior year quarter.

現在轉到幻燈片 8，它總結了我們對第二季度的展望。我們預計我們的強勁勢頭將持續下去，並預計第二季調整後每股收益（不包括任何重組費用、收購成本和股權投資未實現公允價值變化）將在每股 1.30 美元至 1.38 美元之間。第二季的預計稅率範圍為22%至24%。我們預計與去年同期相比，貨幣將產生較小的正面影響。

We currently estimate depreciation and amortization for 2024 to be between $260 million to $270 million. We expect our capital expenditures in 2024, net of any government grants to be between $280 million and $300 million, with the majority of capital allocated toward our Pharma segment. In closing, we continue to have a strong balance sheet with a leverage ratio of approximately 1.4, which allows us to continue to invest in the business, pursue strategic opportunities and continue to return value to shareholders in the form of dividends and repurchases. In addition to our cash dividend payments to shareholders, which totaled approximately $27 million in the quarter, we repurchased about 86,000 shares for approximately $12 million.

我們目前預計 2024 年的折舊和攤提將在 2.6 億至 2.7 億美元之間。我們預計 2024 年的資本支出（扣除任何政府補助）將在 2.8 億至 3 億美元之間，其中大部分資本分配給我們的製藥部門。最後，我們繼續擁有強大的資產負債表，槓桿率約為1.4，這使我們能夠繼續投資於業務，尋求策略機會，並繼續以股息和回購的形式向股東回報價值。除了本季向股東支付的現金股利（總計約 2,700 萬美元）外，我們還以約 1,200 萬美元的價格回購了約 86,000 股股票。

At this time, Stephan will provide a few closing comments before we move to Q&A.

此時，在我們進入問答環節之前，史蒂芬將提供一些結束語。

Thanks, Bob. In closing, following a very strong start in quarter 1. We see our momentum continuing in quarter 2 and the balance of the year. Demand for our proprietary drug delivery systems will continue in the second quarter as well demand for elastomeric components for biologics. As a reminder, we expect our proprietary drug delivery systems to grow within our long-term core sales target range of 7% to 11% for the full year. We see demand for our consumer dispensing, especially for our closure technology to build in quarter 2 as the North American market continues to recover from this [destocking].

謝謝，鮑伯。最後，繼第一季強勁的開局之後。對我們專有的藥物傳輸系統的需求以及對生物製劑彈性體組件的需求將在第二季度持續。提醒一下，我們預計我們的專有給藥系統將在全年 7% 至 11% 的長期核心銷售目標範圍內成長。隨著北美市場繼續從[去庫存]中復甦，我們看到了對我們的消費者配藥的需求，特別是對我們在第二季度建立的封閉技術的需求。

Improving EBITDA margins through cost management and operational performance continues to be a strong focus. With that, I would like to open the call up for your questions.

透過成本管理和營運績效提高 EBITDA 利潤仍然是一個重點。至此，我想開始電話詢問您的問題。

(Operator Instructions) The first question comes from the line of George Staphos with Bank of America.

（操作員說明） 第一個問題來自美國銀行的 George Staphos 線。

Stephan, you mentioned again that you expect pharma to grow in its normal core growth range of 7% to 11%. And that's -- terrific given the comparisons, obviously, saying and doing are 2 different things, but taking that at base value, how should we expect the various end markets or product categories really to trend this year within that 7% to 11%. That's my first question. Second question to you both. In terms of the timing issues that you mentioned in terms of beverage closures in Europe, should we be worried at all about what the implications are longer term for plastics and beverages in Europe? Yes, you're benefiting from the tethered closure, but is the tide going out to sea, so to speak, and that's something else you're going to have to worry about longer term.

Stephan，您再次提到您預計製藥業將在 7% 至 11% 的正常核心成長範圍內成長。顯然，考慮到比較，這真是太棒了，說和做是兩件不同的事情，但以基本價值來看，我們應該如何期望今年各種終端市場或產品類別的趨勢真正在7% 到11%之內。這是我的第一個問題。第二個問題問你們兩個。就您提到的歐洲飲料關閉的時間問題而言，我們是否應該擔心這對歐洲塑膠和飲料的長期影響？是的，你從繫繩封閉中受益，但是可以說，潮水會出海，這是你必須擔心的長期問題。

Thanks, George, and we could hear you just fine. Look, within pharma, the proprietary drug dispensing solutions are growing really, really nicely and we don't see that to change for the year. And then, of course, in biologics, we are rebounding from the situation with last year, plus we see continued good growth. For us, the COVID hangover was not significant in injectables, so we just benefit from the growth. .

謝謝，喬治，我們可以很好地聽到你的聲音。看，在製藥業，專有藥物配藥解決方案的成長非常非常好，我們認為今年這種情況不會改變。當然，在生物製品方面，我們正在從去年的情況中反彈，而且我們看到了持續的良好成長。對我們來說，新冠疫情對注射劑的影響並不顯著，因此我們只是從成長中受益。 。

Now the year-over-year comparisons for every quarter is going to be a bit -- scary, sorry, for the technical term. But overall, we see good growth in injectables as well, same for active material solutions returning to growth. So it's really broad-based, led by the proprietary drug dispensing solutions, and that obviously bodes well for the business.

現在，每個季度的同比比較對於技術術語來說會有點可怕，抱歉。但總體而言，我們看到注射劑也出現了良好的增長，活性材料解決方案也恢復了增長。因此，它的基礎非常廣泛，以專有藥物配藥解決方案為主導，這顯然對業務來說是個好兆頭。

Now in terms of beverage, look, right now, everybody is transitioning to the tethered caps. There is some inventory effect. There's some technical effect of getting machines adjusted to the new caps. But overall, we don't see any concern to the beverage business. I think we have passed plastic peak panic even in Europe now that may not be true for some capitalist. But overall, the reality of carbon footprint and total life cycle analysis in prevails, you saw Unilever also pushing out their goals to 2030. I think there's just a general pragmatism that returns.

現在就飲料而言，你看，現在每個人都在轉向帶有繫繩的瓶蓋。存在一定的庫存效應。讓機器適應新的上限會產生一些技術效果。但總體而言，我們認為飲料業務沒有任何擔憂。我認為，即使在歐洲，我們現在也已經過了塑膠高峰恐慌期，但對某些資本家來說可能並非如此。但總的來說，碳足跡和全生命週期分析的現實佔了上風，你看到聯合利華也將他們的目標推遲到 2030 年。

The next question comes from the line of Ghansham Panjabi with Baird.

下一個問題來自 Ghansham Panjabi 和 Baird 的對話。

Obviously, very, very strong growth in pharma, and I know the reasons for that in terms of the base effect from last year. Did the operating margins come in, in line with what you thought they would? I'm just asking because last year, in the first quarter, obviously, margins were down on a year-over-year basis. And you have built up very nice operating leverage over that level, but I just thought there would be a little bit more [mean aversion] just given the extent of growth? And maybe a parallel question. Is that mix related just because of injectables having that sort of outsized growth?

顯然，製藥業的成長非常非常強勁，我從去年的基本效應中知道了原因。營業利益率是否符合您的預期？我之所以這麼問，是因為去年第一季的利潤率顯然比去年同期下降了。你們已經在這個水準上建立了非常好的營運槓桿，但我只是認為考慮到成長的程度，還會有更多的[平均厭惡]？也許還有一個平行的問題。這種混合是否僅僅因為注射劑有如此巨大的增長而相關？

I would say pretty much in line with expectations. Remember that when injectable grows much faster, and 50% is much faster, that has a negative mix impact on overall pharma. And therefore, you don't see bigger expansion than you might have liked. So overall, this is -- fully in line. The other point I would make, if there's one business, we keep reinvesting in, including cost is, it's of course, pharma. We keep reinvesting in innovation and new business development. So margins are in line with what we expected.

我想說非常符合預期。請記住，當注射劑成長得更快時，50% 的成長速度要快得多，這會對整個製藥業產生負面的混合影響。因此，您不會看到比您希望的更大的擴展。總的來說，這是完全一致的。我要說的另一點是，如果有一個業務，我們會繼續進行再投資，包括成本，那當然是製藥業。我們不斷對創新和新業務開發進行再投資。因此，利潤率符合我們的預期。

Okay, sure. And then for fragrance, just to expand on your sort of outlook for the rest of the year. I mean, obviously, comparisons are going to be difficult. We've talked about that in the past. Are you expecting growth to still remain positive for that segment? What's -- the customer sentiment at this point specific to that market?

好吧，當然。然後是香水，只是為了擴展您對今年剩餘時間的展望。我的意思是，顯然，比較會很困難。我們過去已經討論過這個問題。您是否預期該細分市場仍將保持積極成長？目前該市場特有的客戶情緒是什麼？

Yes. Sentiment remains positive. Of course, the comparison quarter 1, in particular, given the boom of launches last year is difficult, but we would expect fragrance to continue to end the year somewhere in the 3% to 6% range. We see the regions continuing to perform well. And as a reminder, what we sell in Europe ends up all over the world, especially in this segment and also some good strength in Latin America. So overall, I think the 3% to 6% makes sense.

是的。市場情緒依然樂觀。當然，考慮到去年的上市熱潮，比較第一季的情況尤其困難，但我們預計香水在今年年底將繼續保持在 3% 至 6% 的範圍內。我們看到這些地區繼續表現良好。提醒一下，我們在歐洲銷售的產品最終銷往世界各地，特別是在這一領域，在拉丁美洲也有一些良好的實力。所以總的來說，我認為3%到6%是有道理的。

The next question comes from the line of Daniel Rizzo with Jefferies.

下一個問題來自 Daniel Rizzo 和 Jefferies 的對話。

You mentioned that the capacity expansions in pharma are coming to an end. I was just wondering, post that, what your capacity utilization would be with those segments? And I don't know at what point you would think you would have to expand further, like what we can expect, I guess, over the next 5 years?

您提到製藥業的產能擴張即將結束。我只是想知道，這些部分的產能利用率是多少？我不知道什麼時候您會認為您必須進一步擴張，就像我們在未來 5 年內所期望的那樣？

Yes. I think we are done with big new buildings. And again, if you come on the trip with us later this year, you will see it. I mean it's a phenomenal state-of-the-art new building. We're done with that kind of -- but within the building, we can further create capacity. So certainly, we have ample capacity -- as this new capacity is being validated and then the capacity increments if they need it down the road in the 5-year period, they will be more of a smaller increments as we increase cavity counts, as we further automate within the existing building. I mean, we may add another wing in Congress, but that's nothing like what we had to do in Granville.

是的。我認為我們已經完成了大型新建築的建設。再說一次，如果你今年晚些時候和我們一起旅行，你會看到它。我的意思是，這是一座非凡的、最先進的新建築。我們已經完成了這種工作，但在大樓內，我們可以進一步創造能力。所以當然，我們有充足的產能——因為這個新產能正在得到驗證，然後如果他們在五年內需要它，產能就會增加，隨著我們增加腔數，它們將是更小的增量，因為我們在現有建築內進一步自動化。我的意思是，我們可能會在國會增加另一個側翼，但這與我們在格蘭維爾所做的完全不同。

When you do the expansions within the facility, is it easier or in terms of getting approval or making sure it makes -- inspections that you (inaudible)?

當您在設施內進行擴建時，是否更容易獲得批准或確保進行檢查（聽不清楚）？

Of course, every new tool has to be validated. Every new machine has to be validated. But it is in the context of an ecosystem where the crew is fully -- up to speed, and that can be happening in the ordinary course. It's not a massive, big investment like the new Granville 2 facility. I mean, we've made investments all along. We didn't make a big deal out of it. As we upgraded per se, as we upgraded Granville 1, but the Granville 2 is really massive.

當然，每個新工具都必須經過驗證。每台新機器都必須經過驗證。但這是在一個生態系統的背景下，船員們完全跟上進度，而且這可以在正常過程中發生。這不像新的 Granville 2 設施那樣是一項巨大的投資。我的意思是，我們一直在進行投資。我們並沒有小題大作。當我們升級本身時，當我們升級 Granville 1 時，但 Granville 2 確實很大。

The next question comes from the line of Matt Larew with William Blair.

下一個問題來自馬特·拉魯（Matt Larew）和威廉·布萊爾（William Blair）的對話。

I wanted to circle back to injectables. And just get your updated thoughts on participation rate. And really now that we've emerged from the pandemic, your assessment of how customers in the space view referencing sole source or multisource arrangements and perhaps within multisource, if there's a greater preference to spread volume. And to the extent your participation rate has improved, just how important your expanding global footprint has been to those discussions?

我想回到注射劑。並了解您對參與率的最新想法。事實上，現在我們已經擺脫了大流行，您對該領域的客戶如何看待參考單一來源或多來源安排以及可能在多來源內（如果更傾向於傳播量）的評估。如果您的參與率有所提高，那麼您不斷擴大的全球足跡對這些討論有多重要？

Yes. We could spend hours on that question. Look, fundamentally, just to back up, you have -- fix basic SKUs, you have plungers, you have stoppers, you have needle shields, and they can be coated or uncoated. Now there are many more, depending on the level of quality assurance, the level of data that you provide. So as we said, the pandemic has really helped us to demonstrate to the industry that our capabilities are equivalent to the market leader. That allows that we participate in every new project in a new molecule, long-term biologic project, people don't start having dual sourcing.

是的。我們可以花幾個小時來回答這個問題。看，從根本上來說，只是為了備份，你有——修復基本的 SKU，你有柱塞，你有塞子，你有針護罩，它們可以有塗層或無塗層。現在還有更多，具體取決於品質保證等級和您提供的數據水平。正如我們所說，這次疫情確實幫助我們向產業證明了我們的能力與市場領導者相當。這使得我們能夠參與新分子、長期生物項目中的每一個新項目，人們不會開始進行雙重採購。

They pick the horse, they're going to ride. If you have a massive, big product like we were with the COVID vaccines, people did want to have a second source just for security of supply. You don't want to run out of a COVID vaccine. That's all behind us. In general, I can say our product pipeline for biologics is very strong, and keeps building. And whether people choose us or other providers has a lot of factors.

他們選好馬，就要去騎馬。如果你有像我們的新冠疫苗那樣的大規模產品，人們確實希望有第二個來源，只是為了供應安全。您不想用完新冠疫苗。這一切都在我們身後了。總的來說，我可以說我們的生物製品產品線非常強大，並且正在不斷建造。人們選擇我們還是其他提供者有很多因素。

Technical capability, obviously, is an important 1 that's almost a qualifier, but then it has to do with geographic footprint -- ability to provide the support for a particular biologic molecule or vaccine in a particular geography. And then what is not talked about that much, but also a very important business model. We fundamentally have a business model with some other people. We are not getting into the auto-injector business. We are not competing with our customers. And sometimes, customers prefer to deal with somebody who's not competing with them. So those all play a factor, and absolutely having -- the ability to supply in region for region is critical.

顯然，技術能力是一個重要的因素，幾乎是一個限定條件，但它與地理足跡有關——在特定地理位置為特定生物分子或疫苗提供支援的能力。然後還有什麼就不講那麼多了，也是非常重要的商業模式。我們基本上與其他一些人有一個商業模式。我們不會涉足自動注射器業務。我們不與我們的客戶競爭。有時，客戶更願意與不與他們競爭的人打交道。因此，這些都是一個因素，而且絕對具有——為地區提供服務的能力至關重要。

Okay. As a follow-up, just wanted to check on emergency medicine and if you've seen any sort of change in demand for the Narcan product would be one. And then obviously, there's maybe an opportunity on the nasal delivery of epinephrine, which could start to develop in the back half of the year. So just curious for your assessment of what that opportunity might look like.

好的。作為後續行動，我只是想檢查一下急救藥物，如果您發現納洛酮產品的需求發生任何變化，那就是其中之一。顯然，鼻腔輸送腎上腺素可能有機會，這可能會在今年下半年開始發展。所以只是想知道您對這個機會的評估。

Sure. Let's talk Narcan first. We've spoken before about the importance of the over-the-counter approval. Now it's not -- it turns out it's not so important for people walking into a CVS or Walgreens or Rite Aid, and picking up Narcan that business is not so meaningful. But what it has allowed is for states to make bulk purchases of Narcan and then to distribute that in the states to harm reduction agencies to schools, police stations and so on, and disburse the settlement money each state has received and will be receiving for the next 10 to 20 years.

當然。我們先來說說納洛酮。我們之前已經談過場外審批的重要性。現在情況並非如此——事實證明，對於走進 CVS、沃爾格林或 Rite Aid 並拿起麻醉藥的人來說，這並不那麼重要，這項業務沒有那麼有意義。但它允許各州批量購買納洛酮，然後將其分發到各州的學校、警察局等減害機構，並支付各州已經收到和將要收到的和解金。

So it has greatly facilitated much broader distribution into schools, into community centers into prime responders. And who knows maybe 1 day, we all have a set of Narcan our homes. So that's really helping the Narcan distribution. On epinephrine, we're all very excited about it, but I would caution in the end product launches day 1, and no single product changes the game for us. But of course, in totality, they start to build. A lot will depend on what is the reimbursement philosophy of the health insurers and the payers. But certainly, we think this product makes a ton of sense. And if patients are really excited about it, eventually it should receive good reception.

因此，它極大地促進了更廣泛的分發到學校、社區中心和主要響應者。誰知道也許有一天，我們的家都會擁有一套納洛酮。所以這確實對納洛酮的分佈有幫助。關於腎上腺素，我們都對此感到非常興奮，但我會在最終產品發布的第一天提醒大家，沒有任何單一產品可以改變我們的遊戲規則。但當然，總體而言，它們開始建構。很大程度取決於健康保險公司和付款人的報銷理念。但當然，我們認為這個產品很有意義。如果患者真的對此感到興奮，最終它應該會受到良好的歡迎。

The next question comes from the line of George Staphos with Bank of America.

下一個問題來自美國銀行的喬治‧斯塔福斯 (George Staphos)。

Bob, just looking at net cash from operations, it was down a touch from first quarter '23. There probably was just some timing effects here, but could you remind us what was going on in terms of CFO being a little bit lower this first quarter versus last quarter? And then if you could talk more broadly about your goals for SG&A as a percentage of sales, this year, if you care to update us. Obviously, you have, progress in the first quarter. What should we expect for this year?

鮑勃，僅查看營運淨現金，與 23 年第一季相比略有下降。這裡可能只是存在一些時間效應，但您能否提醒我們，第一季財務長人數比上一季略低是怎麼回事？然後，如果您願意向我們通報最新情況，您可以更廣泛地談談您今年的 SG&A 佔銷售額的百分比目標。顯然，第一季取得了進展。今年我們該期待什麼？

Thanks, George. The slight decrease in the cash flow from operations, I think it was primarily due to more working capital, in particular, in some of the inventory areas and also in receivables. Remember, the first quarter was a little bit strange because you had the holiday weekend right at the quarter end. So our receivable balance was a bit higher than what we'd normally expect, but then all those were collected once we got into April. So I wouldn't -- look too much into that. And then when we look at the SG&A as a percentage of sales, we haven't really changed our target. We expect to be at a run rate of 15.1% by the fourth quarter. That's not for the full year, of course, that's kind of run rate going out, and we haven't really modified -- where we stand on that.

謝謝，喬治。營運現金流略有下降，我認為這主要是由於營運資金增加，特別是在某些庫存領域和應收帳款方面。請記住，第一季有點奇怪，因為季度末正好有假日週末。因此，我們的應收帳款餘額比我們通常預期的要高一些，但進入四月後，所有這些都被收回了。所以我不會對此進行過多的研究。然後，當我們將 SG&A 佔銷售額的百分比來看時，我們並沒有真正改變我們的目標。我們預計第四季的運作率為 15.1%。當然，這不是全年的情況，而是運行率，我們還沒有真正改變我們的立場。

The next question comes from the line of Gabe Hajde with Wells Fargo.

下一個問題來自富國銀行的 Gabe Hajde。

Two quick ones. Remind me, again, you guys are carrying $0.01 to $0.02 of commercialization start-up costs in pharma associated with the injectables ramp. Is that true? And then would we see that flip next year -- or go away, I guess, maybe how to think about that? .

兩個快的。再次提醒我，你們在製藥業承擔了 0.01 至 0.02 美元的商業化啟動成本，這些成本與注射劑的成長有關。真的嗎？然後我們明年會看到這種轉變——或者消失，我想，也許如何思考這個問題？ 。

Yes, I think you got it right...

是的，我認為你說得對......

$0.01 to $0.02 is kind of where we're looking at for this year. And yes, in theory, then you'll have that go away and then we'll have to see where we are from a fixed cost absorption in a new plant as business comes in for next year.

0.01 美元到 0.02 美元是我們今年的目標。是的，從理論上講，然後你就會擺脫這種情況，然後我們將不得不看看隨著明年業務的到來，新工廠的固定成本吸收情況如何。

Okay. And then one I recent -- there's been a lot of ground covered on the CapEx side, but maybe bigger picture looking out over the next few years. Can you remind us what maintenance CapEx kind of looks like? I have a note here in our model, 125 to 150. You mentioned adding some pharma capacity, I think, in 3 key regions. And so I guess as a portion of the targeted spend this year, can you break out what's still the injectables investment carryover versus maybe what's new in pharma.

好的。然後是我最近的一個——資本支出方面有很多內容，但也許是未來幾年的更大前景。您能否提醒我們維護資本支出是什麼樣的？我在我們的模型中做了一個註釋，125 到 150。因此，我想，作為今年目標支出的一部分，您能否列出注射劑投資結轉與製藥領域的新增投資之間的差異。

Okay. I don't know if I have in front of me what the runout is on the injectables rollout, but on your maintenance number, $125 million to $150 million. I think as we talked before, it's sometimes difficult for us to really categorize, between a maintenance of investment and, call it, a productivity improvement or cost savings, right? Very rarely will we invest like-for-like, meaning that if we're replacing an old mold or replacing an old assembly line.

好的。我不知道我是否知道注射劑推出的支出是多少，但就維護金額而言，1.25 億至 1.5 億美元。我認為正如我們之前談到的，有時我們很難真正對投資維持和所謂的生產力提高或成本節約進行分類，對嗎？我們很少會進行同類投資，這意味著我們要更換舊模具或更換舊組裝線。

We're typically doing it with a more efficient, higher output type of thing. So we would say that between true maintenance of business, and some of those in-betweeners that cover also productivity and cost savings, 45% to 50% is of total CapEx would be in the ballpark. So I think you're $125 to $150 million is in the right range.

我們通常使用更有效率、更高輸出類型的東西來做到這一點。因此，我們可以說，在真正的業務維護和一些涵蓋生產力和成本節約的中間因素之間，總資本支出的 45% 到 50% 是在大概範圍內。所以我認為 125 到 1.5 億美元是在適當的範圍內。

Okay. And some of the discrete projects that you have going on this year, I heard you say not on injectables, but the capacity expansions, is it just safe to say that maybe everything that you're spending above that $150 million this year is mostly pharma related?

好的。今年你正在進行的一些離散項目，我聽說你說的不是注射劑，而是產能擴張，可以肯定地說，也許你今年花費超過 1.5 億美元的所有支出都主要是製藥相關的？

Yes. I mean we've talked a little bit but we do have some capacity increases in some other isolated areas. But yes, I think that's a fair bet that a lot of -- the excess above the big rollouts are predominantly in the pharma area.

是的。我的意思是我們已經談過一些，但我們確實在其他一些偏遠地區增加了一些容量。但是，是的，我認為這是一個公平的賭注，大量部署之外的多餘部分主要集中在製藥領域。

If you look at the growth in proprietary drug dispensing systems, it's so strong, and obviously, think about the product like Narcan, you don't want to run out of capacity. So you need to expand ahead of the curve, and we're having a keen looking there and do not hesitate to expand capacity.

如果你看看專有藥物配藥系統的成長，你會發現它是如此強勁，顯然，想想像納洛酮這樣的產品，你不想耗盡產能。因此，您需要提前擴張，我們對此有著敏銳的洞察力，並且毫不猶豫地擴大產能。

Thank you. There are currently no additional questions registered. So I would now like to pass the conference back to Stephan Tanda for any closing comments. .

謝謝。目前沒有登記任何其他問題。因此，我現在想將會議轉回給史蒂芬·坦達（Stephan Tanda）徵求結束意見。 。

Great. Well, thanks for the questions. As you see, we are fully executing on the ambitious plans that we shared with you last September at the Investor Day with a strong focus both on the top line and on delivering structural and ongoing productivity gains. This is all to ensure our bottom line grows faster than our top line. You have seen that play out throughout 2023, and we're now off to a very strong start in 2024, and we see that momentum continuing into quarter 2 and the balance of the year.

偉大的。嗯，謝謝你的提問。正如您所看到的，我們正在全面執行去年 9 月投資者日與您分享的雄心勃勃的計劃，重點關注營收以及實現結構性和持續的生產力提升。這一切都是為了確保我們的利潤成長快於收入。您已經看到了這種情況在 2023 年的表現，現在我們在 2024 年有了一個非常強勁的開局，我們看到這種勢頭將持續到第二季​​度和今年的剩餘時間。

Our order books and project pipelines remain strong. Our customer is engaging very positively with our innovations and the overall value that we can bring to their brands and drug products, including our overall sustainability contributions. A significant number of the productivity and cost reduction efforts are well underway in all regions. We mentioned a few on the call, and they will keep adding to the bottom line throughout 2024 and 2025.

我們的訂單和項目管道仍然強勁。我們的客戶非常積極地參與我們的創新以及我們可以為其品牌和藥品帶來的整體價值，包括我們對永續發展的整體貢獻。所有地區都在大力開展提高生產力和降低成本的工作。我們在電話會議中提到了一些，他們將在 2024 年和 2025 年繼續增加利潤。

In addition, our teams are energized to find additional productivity opportunities. This is becoming a point of pride in the company and taking root into our culture. We are increasing the competitiveness of our regional footprint with all the actions in Europe, Asia, and North America. And now you've also heard about Argentina and we expand capacity in Mexico.

此外，我們的團隊充滿活力地尋找額外的生產力機會。這正在成為公司的驕傲，並紮根於我們的文化中。我們正在透過歐洲、亞洲和北美的所有行動來提高我們區域足跡的競爭力。現在您也聽說了阿根廷，我們擴大了墨西哥的產能。

As Bob said, our strong balance sheet allows us to continue to invest in growth, productivity, and we also find the both sized acquisitions, and partnerships, and have a solid track record of delivering value for shareholders. So when you consider all the puts and takes for the coming period, proprietary drug delivery systems will continue to grow even after a year of double-digit growth, and we expect them to remain inside our overall pharma target growth, and our growth target.

正如鮑伯所說，我們強大的資產負債表使我們能夠繼續投資於成長和生產力，我們還發現了規模收購和合作夥伴關係，並在為股東創造價值方面擁有良好的記錄。因此，當您考慮未來一段時間的所有看跌期權時，即使在經歷了一年的兩位數增長之後，專有藥物輸送系統仍將繼續增長，我們預計它們將保持在我們的整體製藥目標增長和我們的成長目標之內。

Injectables has a strong pipeline and has additional capacities coming online and validated through the year will be -- able to serve this demand. Digital health, we haven't talked about, but is continuing to improve with project wins. Fragrance will continue to grow after a year of double-digit growth, albeit at the lower rate. The destocking in North America for Beauty and Closures is coming to an end.

Injectables 擁有強大的產品線，並擁有額外的產能，並在今年內上線和驗證，將能夠滿足這一需求。數位健康，我們還沒有談論過，但隨著專案的成功，數位健康正在不斷改善。在經歷了一年的兩位數增長之後，香水將繼續增長，儘管增速較低。北美美容和瓶蓋的去庫存即將結束。

And our Latin America team is executing very well against -- actually, a generally very positive economic background, but of course, with the exception of Argentina, which we are addressing. We haven't talked about Asia, but China is progressively recovering and India is pulling very strongly.

事實上，我們的拉丁美洲團隊在整體非常積極的經濟背景下表現得非常好，但當然，我們正在解決的阿根廷除外。我們還沒有談論亞洲，但中國正在逐步復甦，印度的拉動也非常強勁。

And as we talk, SG&A expenses and overall manufacturing fixed cost as a percentage of sales are coming down. So all of this makes us very energized for '24, and we're looking forward to discuss more with you on the road.

正如我們所說，SG&A 費用和整體製造固定成本佔銷售額的百分比正在下降。所有這些都讓我們對 24 年充滿活力，我們期待在路上與您進行更多討論。

This concludes today's conference call. Thank you all for your participation. You may now disconnect your lines.

今天的電話會議到此結束。感謝大家的參與。現在您可以斷開線路。