APTARGROUP, INC. — Call Transcript 2026

Afternoon. I'm Gabe Hajde, Wells Fargo's paper and packaging analyst, joined by my colleagues today. I think maybe one of them might be in the room, Bailey Gordon, Richard Carlson as well. We'd like to welcome you today to AptarGroup. Representing the company is CFO Vanessa Kanu, who has been with the company for about 18 months. Also attending from Aptar is Mary Skafidas, in the room as well. As many of you may or may not know, Aptar is the global leader in dosing, dispensing, and protection technologies for drugs and consumer products. Pharmaceutical is by far its largest segment in EBITDA terms, with the other two segments being beauty and closures. Thank you all for attending again. This is intended to be a fireside chat. To the extent folks have questions in the room, don't hesitate to ask. With that introduction, Vanessa, I think you guys have a couple of slides and prepared remarks to go through. We have a presentation. Yeah. Which, let me just make sure this clicker works. Are you ready? Yeah. Love to hear everything about Aptar today. Okay, fantastic. Well, thank you, Gabe. Thanks, everyone, for joining us. Thank you for describing what we do. I think if I were to synthesize this, it really just means that we are an expert in the end user. We create experiences for patients, for consumers. At the core, we are a technology company. We own the IP of everything that we manufacture, so we're not a contract manufacturer. We're truly global, operating in about 20 countries across four regions. The lion's share for us being in Europe. As you can see here, for the year ended 2025, $3.8 billion in revenue, about 46% of that from pharma, beauty being 35%, and closures 19%. You can kind of see there as well what the split of our adjusted EBITDA is by segment. I'll also add, as you look at our segments across all of these end markets, we've got really good growing end markets and really good growth potential. We have a strong balance sheet. Our leverage is actually towards the lower end of many of our peers, if not most of them. Feeling very proud about that. Really, that strong balance sheet is also very helpful to us, particularly for our pharma customers, as you think through the long development cycles in pharma. Our customers want to make sure that they're dealing with a partner who is very financially strong and can stay through the course of those long development cycles as well. Also very proud of our capital allocation and return of capital to shareholders. In the last five years, we've returned about $1.2 billion to shareholders through dividends and through buybacks. Of course, we're very proud of our sustainability credentials. We get a lot of awards for sustainability. I won't go through all of them that you see on the slides here. Certainly, this is a differentiator for our customers, particularly in the consumer businesses and also for our employees, in terms of attraction and retention of our employees. This really just looks at technologies and industrial capabilities and how these are shared across our different end markets. When you look at the verticals here, you see the different end markets that we play in, and the horizontals kind of show you how we share these technology and technology platforms across our end markets. For example, whether it's dispensing fine mist pumps or frankly airless systems or even aerosol valves and bag-on-valve, you see how we share these technologies across different end markets that we serve. You look at the different industrial capabilities, precision injection molding, high-speed assembly, AI, and quality control. These are all areas where we share these capabilities across our entire footprint. You may also know that our pharma business was actually born from our beauty business, speaking also to the synergies that we share across our different end markets and platforms. I mentioned earlier that we're a technology company, and we own the IP of everything that we manufacture, and this really gives you a little more color around that. We've got about 7,300 patents across our portfolio. You see there pharma being just around two-thirds of that. For us, these patents are obviously know-how, trademarks, and patents. This is really important to us, and this is why we defend our patents when we need to, because clearly from our perspective, this is what differentiates us relative to a lot of our competition. Innovation is how we drive change and growth across all three of our segments. Frankly, it's also a lot of the times how we also reprice and price upwards, is through coming to market with new innovative solutions. Patents and IP being a key component of that. I mentioned earlier that we are in growing end markets, and I really like this slide because when you think about any market, the first question is, well, what are the secular trends in that market, right? When you look across our three businesses, pharma, beauty, and closures, you can see the size of our TAM on this slide. You can also see here, these are market growth rates, not Aptar growth rates. We are in a pharma packaging end market that's $165 billion, and the market growth is 7%. You can see what the market growth there is for beauty, as well as for closures. I will say, going back to my earlier comments around innovation, when you think about closures, for example, we have consistently grown better than market, higher than market, and that's through category conversion. The category conversion comes through driving innovation and new innovative products to the market. This is what makes us frankly excited about our long-term growth potential because we are in markets that do have secular tailwinds. Also, it's a highly diversified model. As we typically say, no single product is going to make or break our long-term target. Of course, on a shorter-term basis, you'll have some products be stronger contributors than others. When you look at the overall longer-term picture, no one product is going to make or break our overall long-term trajectory. I talked a bit earlier about capital deployment and $1.2 billion return to shareholders. When you look at our capital allocation, and you look at the last several years, typically about two-thirds of our capital has been reinvested back in our business. Why? We're a growing business, and we also get really good returns. These are investments, both organic capital investments as well as M&A. Really good returns, and of course, we preferentially allocate capital to pharma, given the higher growth, higher profitability profile of pharma relative to other segments. Of course, as I mentioned earlier, about a third of that being returned to shareholders, 32 years of annually increasing dividends. Of course, we also do some share buybacks. We've been very active in share buybacks, particularly over the past 12 to 14 months. Again, that remains a more discretionary element of our capital allocation framework. We already talked about sustainability and all the different awards that we see there. Just taking a little bit of a closer look at pharma. This is the growth engine of our business and will continue to be the growth engine of our business. We are differentiated here, not only through our very strong patent portfolio, but also the knowhow that we've built over the last 40 years. When you look at the key strengths, we've been so deeply involved in this market over the last 40 years through a lot of technical regulatory knowhow, and that's what we help our customers with. We help our customers through the life cycle, both from obviously from the very beginning, where we start earning service revenues right through to different parts of the drug development cycle. A lot of knowhow we've built here over the last 40 years, a lot of engineering and scientific knowhow. When you look at the customers that we serve, we are serving a lot of the big pharma companies and also delivering to their larger CMO partners as well. This shows drug sales by delivery route. We like this slide because it's a good way to characterize the end market. $1.7 trillion in the end market, oral being the largest part of that end market, followed by injectables. Respiratory, which is where a lot of our revenue comes from today, is a smaller part of the market, but actually a market that we do very well in. When you look at the margins across our portfolio, we actually make very strong margins in that part of the business, respiratory and nasal. We're also doing quite well in ophthalmic solutions. Our injectables business is growing really well, and doing quite well from a margin perspective as well. We also play a role in the oral route of delivery through our active material science portfolio. This gives you a sense for our historical growth trajectory, and I think it's important to level set on this because obviously, we've got some near-term headwinds with emergency medicine. We've quantified that to investors, these are near-term headwinds. When you look at over a longer period of time, we've got long-term target growth of 7%-11% in pharma. When you look at the last 10 years, you see here we've done 9% CAGR. Not every single quarter was in that range, not every single year was in that range, but it's a CAGR. This is why, again, when we look at our targets, these are long-term growth targets, and you'll see that they're very much anchored in our historical growth profile, which we've achieved, and also, in our pipeline, which we're very excited about. Speaking of the pharma pipeline, the pipeline here, you'll hear us say pharma is a pipeline business. It's a numbers game for us, right? There's a lot of attrition in the pharma cycle. We want a pipeline that is big, that is growing, and that as that pipeline converts, that obviously contributes to revenue growth. When you look at the pipeline over the last five years, it has grown significantly, not only in terms of scale, but also in terms of scope. The pipeline has become a lot more diversified. This shows you what the top 8 areas are, therapeutic areas are in our pipeline. I won't go through all of them, but you can see here it is fairly well diversified, which is very exciting to us because, again, no single product is going to make or break that long-term growth profile. Top three items, respiratory, biologics, and systemic nasal drug delivery, SNDD, which is essentially delivering medicines through the nose-to-brain, a very exciting area of growth for us in the future. We are seeing more and more drugs being administered nasally, which bodes very well for us given what I said earlier in terms of our participation and really our level of experience in nasally administered therapies. This slide is really important because it really shows you how we actually grow over the life cycle of a drug. In the early days, we typically provide services to our customers. We are earning revenues from the early days. Then it shows you what happens when the drug goes from originator to generic to over-the-counter. So you can see there how we generate revenue in those early days with the originator. The drug then goes off patent. It is the API that goes off patent. We are part of the Drug Master File, and so when the generic comes online, they tend to use our product as well. Why? Because if they don't, they have to go back through, because we are part of the Drug Master File, they have to go back through clinical trials. That adds a level of stickiness to our revenues, and our margin profile doesn't change when we go from originator to generic, which is pretty exciting. Then, of course, when the drug then goes over the counter, the market expands, volumes continue to expand, and our delivery devices are also part of that. And so volumes expand, we participate in that volume growth, and our margin profile doesn't change. It is actually the same and sometimes even better, depending on the particular product. So this tells you how our revenues tend to grow and compound over time. Again, this is just really adding more color to my earlier comments about how we support a number of our customers through the drug development life cycle. Again, this also speaks to all the different therapeutic areas that we are seeing growth in our pipeline, and the key message here is diversification. Diversification, no one product, no one area, and this is what really excites us, particularly in the nose-to-brain area. Very quickly touching on beauty, a $1.3 billion business. Beauty, we went through a de-stocking cycle, particularly with high-end fragrance in the last couple of years. We are now seeing growth again in beauty. We saw growth overall, 2% core sales growth in 2025. We ended 2025 with positive growth in Q4. We also just had good growth in Q1 of this year. As we've said on our last earnings call, we do expect to see strong growth in beauty also through the rest of 2026. We're very excited about that. We do have some short-term operational challenges that we talked about last quarter. We're impacted by a certain supplier, and we're working through some of those issues. We do expect the margins to improve, particularly as we get through the balance of 2026. You can see here, again, the diversification, not only geographically speaking, and by the way, the 60% that goes to Europe, our customers tend to ship that to other regions as well. That's just where we're shipping to the customers. They tend to actually ship that outward. A very globally diversified business for us, and you can see all the very large names and brands that you'll recognize in terms of the customers that we serve in beauty. Also a very diversified portfolio from fragrance pumps to airless systems to turnkey solutions that we provide for our customers. Last but not least, closures, which is a newer segment for us that was created just a few years ago by consolidating our food and beverage business and some personal care out of our beauty business. That business is doing quite well for us. We continue to have very good product growth in closures. Margins have generally been at the lower end of our long-term target range. We also had some operational challenges there in the last couple of quarters, which we are working through. We see good growth potential in closures and also the opportunity to get our margins more consistently in that long-term target range. Again, here, a very diversified portfolio, just looking at the breadth of all the different products that we bring to the market in this part of our business. Key takeaways, I think it's very clear the fundamentals of our pharma business, we've been very, very strong. What excites us is frankly, the pipeline. It's good that our growth historically has been consistent, but as we look outward, very excited about the breadth of the pipeline and the growth in the pipeline as well. Injectables is doing very well. You would have seen from the last few quarters of our earnings call, double-digit growth in injectables, and so we're excited about that. Innovation, a key driver of our growth, not only in the past, but also going forward. Of course, the strong balance sheet that I spoke to, which is something that we're very proud of because it gives us the flexibility to invest back into our business, but also return capital to our highly valued shareholders. With that, Gabe, let me stop there. That was a quick flyby. Thank you, Mary. That was more than a couple of slides. Appreciate, it's a general session, it's an equities conference here at Wells Fargo today. We recently got more constructive on the name March 20th, part of it was the strong balance sheet and the resilience of your pharma segment. There's a lot of detail in here that it's tough to walk through everything that you do for your customers. We'll start on the negatives first. You mentioned this emergency medicine de-stocking, that's been a little bit of a nagging issue. You talk about hitting singles and doubles. I've covered the stock now for close to 20 years. That's historically speaking been the case. That singles and doubles, you consistently deliver. NARCAN naloxone is a little bit of an exception to that. You kind of framed up for us that it was going to be down about 35%, maybe 40% this year, going from maybe 7% of revenue to 5% of revenue. Can you just talk about how that's kind of the cadence of that through the first half? Is it playing out the way you expected? From a profitability standpoint, I think it tends to be one of the more attractive areas within your portfolio. Operating leverage, de-leverage. Is there anything unique about that product relative to everything else that you'd like to call out for us? Maybe just stepping back, NARCAN naloxone, pharma generally has a pretty long cycle. It takes a while to bring these products to market. Let's talk about why we saw such rapid growth in a short amount of time. Clearly, we were in a crisis, opiate crisis, and the FDA accelerated the timelines. We saw a very large amount of growth over a much, much truncated cycle. It got to a point where we did start to see that inventory was likely building up. This is a channel that is very, very opaque. There's not a lot of data, third-party external data. You can't go to IQVIA, you can't go to Nielsen, you can't go to other credible sources of external data to say, "I'll just plug these numbers into my model and just see what it spits out," right? That's a very opaque channel. Frankly, what's the channel for this product? Hospitals, fire departments, libraries, and so on. There's not really one single source of information. We started to see that we thought inventory was building up, and of course, our customers, however, because we're B2B, kept on ordering, and of course, you're going to fulfill your customer's orders. You're not going to tell your customers, "No thanks, I'm going to hold your order because I think you might be building up inventory." They also had some of their data possibly incorrect. We suspected we were building up inventory, and we started to put our own information together, and shared these concerns. We were able to quantify it, to your point, Gabe, and we did quantify that Q4 of 2025 would be a pretty big impact, and we shared what that was. Then for 2026, we said it was about a $65 million full year headwind is what we expected. We also said roughly two-thirds of that would be the first-half impact, and about a third of that would be the second-half impact. We are so far tracking pretty close to those estimates. Partly good forecasting on our end, partly luck because we can't all take the credit for everything that goes well, but it's tracking pretty closely so far. That all bodes well. To your point, this is a very high-margin part of our portfolio, emergency medicine, saving lives, controlling the dosage, five nines of reliability, and quality. Of course, in pharma, these are the kinds of medicines that command a pretty high price point. Very high margins for us. As we experience these headwinds to the top line driven from NARCAN, of course, that is having an outsized impact to the bottom line. With all that being said, we're super proud of the fact that even in Q1, when we looked at the year-over-year impacts, pharma still was in its long-term target margin range. I think that also speaks to the strength of the rest of our portfolio. Also other mitigating factors that we're taking internally, just so that we're not seeing all of this flow straight through to the bottom line. I would agree with that. Just maybe specifically on emergency medicines or however you guys track that internally, would you consider that anecdotally, what we hear from first responders is that, unfortunately, it's still something that they're using on a day-to-day basis, and oftentimes they administer three at a time because you may not always necessarily get the response you want. Yeah After the first one. Just any sort of dialogue with customers that would suggest this will be a growing product line for Aptar, or is it too soon to tell? Certainly, we want to get through the destocking dynamics. We think that the destocking should be behind us at the end of this year. Back to my earlier points about we're tracking to that. The question is what happens after, right? There was a period of uncertainty around the funding climate, that seems to have stabilized. Funding is important for this product because it's largely funded by the government. That's how states and locals get the budget to buy these lifesaving products. Funding is really important and we had a period of early last year, there was a lot of uncertainty. Is it cut, is it not cut? Then we got some clarification from the administration. That climate is now stabilizing, and in fact, I think the funding expectations for 2027 are looking pretty healthy based on what we're seeing right now, which is good. Once we pass these destocking dynamics, unfortunately, the crisis is not behind us, right? The need for these lifesaving medications will continue. The originator in this space has certainly said publicly that they do expect this to be a high single to mid-single digit grower over time. For us, we think that's the right range once we're past this period. Fairly consistent with the portfolio overall. Yeah. Okay. Yeah. One question that I'm trying to ask all the companies that are at our conference, I think it's relevant. How would you compare this recent acceleration in input cost to what we observed during the pandemic or 2021, 2022 timeframe? Obviously, everyone's pretty laser-focused on oil, petrochemical derivatives, which are somewhat impactful for your business from a raw material standpoint. But obviously, day-to-day transportation. Those types of things, internal meetings or however you characterize it. How are you thinking about that? Then relationship with your customers, your ability to recover that. Yeah. I would say we're better organized. Having experienced it before, what's different this time is we're better organized. At least from our organization, we were able to hit the ground running relatively quickly because we had already developed this muscle internally through COVID, through other periods of inflation. Frankly, also through tariffs last year. Just name your inflation. There's been a lot of inflation in the last few years, right? Tariffs were similar to that extent. This time, we didn't see a lot in Q1. We started to see it towards the tail end of March. It didn't feature a lot in our commentary in our Q1 earnings. We did talk about it in terms of Q2 and beyond. We are seeing a significant amount of inflation. For us, the biggest impact is resin. Resin prices, particularly in our closure segment. Why closures? Well, closures just has a higher percentage of resin in the actual product itself compared to, say, pharma and beauty. Closures sees the biggest impact. In closures, we have indexation clauses in our contracts. We pass that on to customers. The company has also done a really good job learning from those earlier experiences, Gabe, where we're now passing that on a much shorter time lag than before. If you go back many years, you would've seen a bit of a time differential where we incurred the cost, but we didn't quite pass it through right away, you saw some margin degradation, then we caught up. I think it's a lot smoother this time. We've built up that muscle internally, which is great. In beauty and in pharma, where we don't quite have the same level of indexation, just again for reasons I just mentioned, we're actually passing those cost increases through as discrete line items, as surcharges. It's raw materials cost, but frankly, it's also transportation. Energy prices are higher across the board, which has ripple effects across a number of things, and we've been passing those through. Again, so far, so good. Nobody likes getting a price increase. I don't like getting a price increase. We're very transparent. Again, that's because we've built that muscle over time where we're showing them and sharing with our customers exactly why and where the cost increases are coming from. Nola, I think the muscle memory is an important distinction. What's interesting is, you see that over time these companies develop that, things have changed for sure, I think, in terms of how go-to-market used to be versus where it is today. That's good to hear. What we also hear is your product typically as a portion of the, whether it's the retail price on the shelf- Yeah or think about a drug, is typically a small fraction. They're focused on some other items. That's correct. Yep. You mentioned tariffs. I've got a different question about it. Just we kind of have this 150 days, I think now we're focused on Section 301 tariffs, is how we're going to get this through. As you look at the business, is there anything that jumps out at you, and I'm thinking more maybe in the closures or Beauty segment, where whether it's to get ahead of price increases, whether it's we've got some certainty on tariffs, where customers may be trying to sneakily build some inventory, or is that not something that- We haven't really seen that, we were watching for that, are people going to pre-buy? to get ahead of expected changes in tariffs. We were very acute in looking for this even last year, but also now. We don't really see that. We may have a couple of anecdotal cases where we've heard that, okay, maybe that could be a driver, but we have not seen this as anything sort of notable across the board. Not really any big impact there. Okay. I want to get to the exciting stuff, because Aptar is one of the few stocks in the group when you look over a long period of time that is a compounder, and it's been driven by the investment in pharma. You mentioned pipeline in your prepared remarks. Nasal delivery is a big part of that. Injectables is a big part of that. I think other folks, this isn't a healthcare conference, but to the extent that we're seeing more and more biologics and biosimilars that are out there in the marketplace for a variety of different treatments. When you look at the pipeline, and I'm looking at things that are out there in the public domain that we know about, Envy Mist, Cardemyst, neffy. It's easier from a patient compliance standpoint. Getting back to that 7%-11% growth, which seems to be sort of the linchpin for the stock. Are those the types of drugs and introductions, number one, are there other ones that I'm missing? Number two, you kind of gave us that flowchart, which almost looked like it was, I want to say 17-20 years when you kind of go from. I think it was 30 years. 30 years. Okay. As you look out at maybe over the next 12-18 months, we feel good that we can get back into that range, assuming a normalized backdrop, whatever that looks like. Yeah. Let me just maybe start with, the range is a long-term range. Yeah. It's not a 12-month range. Yep. Again, emergency medicine, you kind of get these one-time effects, but when you look out over a longer term period, we absolutely expect to continue that compounding that you just described. Honestly, Gabe, I think a lot of the examples you gave are just exactly the reasons why we're very excited. The examples you gave of neffy, Embymist, and so on, these are cases where an existing molecule was taken, where the molecule was delivered in a particular way. In the case of neffy, it's epinephrine, which we all know, you jam it into your thigh as an injection. Now being nasally delivered. You've got a big part of the population that may not necessarily, my children, to start with. They don't like needles. So they would be perfect case studies for why neffy, for example, is a very exciting development. Now, it takes time in pharma. It's not just you don't launch the product tomorrow, all of a sudden it grows like gangbusters. These things do take years to grow, insurance companies, adoption, and so on. This is a very exciting development for us. Some of the other items that you mentioned as well. Again, existing molecule, new method of delivery, nasal administration. It's a lot more efficacious. It's a lot more convenient. When you think about the broader population demographics, also other broader pressures across healthcare. Aging population, also, the cost of hospitalization is very, very high. It's one of the biggest problems that we have. This move towards self-administration, patient can treat themselves at home without a nurse or some kind of a supervision because you can administer through the nose versus having somebody help you with an injection, or God forbid you do it wrong, because you're so careful about your fears around needles and so on. This is a lot more convenient and efficacious. These are broader trends that actually work in our favor. We're also seeing more and more research around the nose-to-brain overall, and depression is a key area. Also, other diseases such as Parkinson's, Alzheimer's, all of these are areas being researched for nasal administration of the drugs. Very, very exciting for us. As I kind of shared that slice of the market that we play so well in, this is all just fantastic. This is exactly our sweet spot. At risk of. The highest in our portfolio. Right. As that grows, very good for our margins as well. I think you guys put out a press release on May 20th, and unfortunately, Gael's not here. He's CEO-elect. Yeah head of pharma. Maybe he can speak a little bit more eloquently about this. I think it was kind of like patent applications. Yep for pre-clinical data supporting intranasal delivery for, or pulmonary of GLP-1. Yep. semaglutide? Yeah. Which a lot of people are really excited about. Again, we're not at the healthcare conference. Just from the packaging guys' perspective, presumably patient compliance may go up. Maybe adoption could go up. There's a lot of, I guess, net benefits of that. Is this something where the molecule is already proven? Can you walk us through maybe some of the technical aspects? Is it a truncated timeline that we should think about? This is not going to deliver revenue tomorrow. Right It really speaks to our level of innovation. It comes back to the whole nasal administration, right? This is GLP-1 being delivered not only as an injectable, not only as an oral, but potentially, through the nose. Aptar, just given our knowhow in this space, we just filed patents on this to give us points a couple of weeks ago. We're very excited about this. Clearly, we're not a pharmaceutical company, so we're not going to start developing the drug to sell. There's so many different potential routes to market for this. Licensing, so many other opportunities that may come along with it. Of course, you got the device sale, as well. This really shows our innovation in this area, really leading in this area. Also, this is something that could unleash a lot of potential future revenue for us. The other aspect, it goes back to the nasal administration. It's also interesting, back to the innovation thing, as we talk about GLP-1, maybe getting a little bit less questions now, but a quarter or two ago it was all about what's going to happen to your injectables because now GLP-1s are going to be through oral. We always said, there will be a market, right? We don't see this as being cannibalistic to the injectables portfolio. We do think that it expands the market. There will be coexistence of oral solutions to injectable solutions. Now we're looking at potentially delivering GLP-1 through the nasal tract. Very exciting. This is exactly the area where Aptar is frankly leading the pack. I guess if we were in the business of tooting horns, you guys are the only company out there that could do all three. You have active packaging for oral- Yeah solid dose, right? You have injectables, and you also have the- 100%. Yeah. 100%. Very exciting. The other thing is, I would say, just as we're talking about injectables, GLP-1s are of course very important, but that's not the only driver of our injectables growth. Biologics are a huge driver of our injectables growth. When you looked at the slide on the pipeline just a few slides ago, we saw Biologics being a big part of that. In fact, I think it was the second biggest area in our pipeline, so we're very excited about that. While we will participate in GLP-1 growth, it's not the only driver of growth in our injectables business, Annex 1 also being a big driver. These are all areas, to your earlier question, Gabe, that we are quite excited about and we think supportive of that long term, 7%-11%. I want to ask a general corporate question and then maybe two on the other businesses. Stephan told us that he's going to be retiring in March. He was an outside CEO. Now, like I said, Gael, who heads up pharma, is an internal candidate. Just a fresh set of eyes. You've worked with him now, obviously. I think, at least maybe for me, it seemed like he was kind of being groomed. I think it's going to be a good internal promotion. Are there any things that you see that, during the Touya era- that might be in focus operationally, commercially, or anything like that you'd call out for us? Yeah. I mean, yes. First, we wish Stephan the best in his retirement. He chose to retire. He is very excited about his future plans with his wife. They fly planes. They go hiking. I mean, Frankly, the rest of us are just jealous about all the fun things he plans to do when he retires, but we are very happy for him. He certainly deserves it. Now we welcome Gael, and as you say, Gael is a very strong leader, very well-known and very well-respected within the organization. I think one of the unique things about Gael as well is not only is he an internal candidate, but he also knows all the segments very well. I think that is important. Obviously has run the pharma business for the last 10 years and has been quite successful in running the pharma business for the last 10 years. I think, Gael, I have worked with him very closely for the last 18 months since I joined the organization. Of course, even more closely now since the board made its succession decision, as he is now going through the transition with Stephan. You will find in Gael likes to study things. He is very much data-driven, very thoughtful, wants the facts, which as a CFO, goodness gracious, thank you. Yeah Let us talk facts. You will also see in Gael a very strong drive for innovation. I think you are going to see that from him as well. I think you are going to see, being somebody who has been with Aptar for a long time and loves the organization, a very strong focus on culture, values. I think that is going to be important. Also performance, right? Gael holds his team accountable. He is not looking for excuses. He is looking for, "Show me the data, show me where you are growing, and let us dig into the details." He is very detail-oriented, which again, I think for a CFO, I could not be more grateful for that, because I think those are all the attributes that will bode well as we go forward. Excited to have him on board, and looking forward to what potentially comes next. Data-driven. Data-driven. I like it, yep. Beauty, I think Q1 growth was in the 3% range. Margins, a tick below. You talked about having to re-qualify a supplier on some particular applications. Target is 15%-17%. You're pretty close. Do we need that? We're oh-so-close. That's the frustrating part, Gabe. Let's just call a spade a spade. Well. We're really close, yeah. You're close. I wanted to ask about, you mentioned de-stock, high-end fragrance versus kind of massage. Do we need that incremental volume bump to kind of get in that range, or are there things that we can do internally to get there? We've done a lot, which is my comment about the frustrating part is we've done so much, and we've come so close. Then, of course, we saw some of these operational challenges which set us back a little bit. That's my comment around just being frustrated. It really is within distance. Yep. If you look at the work we've done in beauty for the last couple of years, we've shut down 10 plants. We've right-sized the labor force to the tune of 10%, 11%, 12%. The organization has not sat back, has done a lot of work around cost management in beauty, and continues to do a lot of work around cost management in beauty. We did go through this de-stocking cycle, which obviously was a headwind to the top line, and in manufacturing, volumes matter. Right. Volumes matter for your absorption and all of those different things, right? We are excited that we're now seeing volume growth in beauty after that long period of de-stocking. We saw growth in Q4. We saw growth in Q1. The margins, they don't just rebound in your first quarter of growth, we do need to see this consistently, but we're absolutely optimistic that we will start to see improvement in the beauty margins, and we need to get through these short-term operational hiccups that you mentioned, like the fire and the new supplier and having to incur additional costs, that should all be behind us, we think, by the end of the first half. Hopefully, we're expecting to see sequential improvement in the margins as we go forward. Last question for you, similar line of questioning for closures, just kind of the path forward for profitability. Starting the year, I think, food and beverage, at least, customers were optimistic they could promote. We're hitting another wave of inflation. How should we think about that? Yeah. Closures, again, newer segment, as I mentioned earlier. We've been pretty good from a growth perspective in closures. Our products, again, the reported growth tends to, depending on rest and pass-through- and so on. If you kind of strip that out and just look at what's happened to the products revenue in closures, we've done pretty well. We've typically grown better than market, as I mentioned earlier, through innovation, converting categories, and so on. We actually expect that to continue. We're expecting 2026 to be a good growth year for closures. There again, as we kind of look at the last 12 to 18 months, we've been at the lower end of our target margin range. We have not been in the last couple of quarters because of some operational challenges, some maintenance issues that we've had to deal with. The closures team continues to work pretty diligently through those issues. There again, we did say that we expect that to continue into the first half. Again, we expect sequential improvement in the closures margins going forward. Perfect. I think that wraps it up. Unless there's any questions from the audience You asked all the questions. We tend to do that. Thank you very much. Thank you, Gabe. Thanks, everyone.

Speaker 1: Afternoon. I'm Gabe Hajde, Wells Fargo's paper and packaging analyst, joined by my colleagues today. I think maybe one of them might be in the room, Bailey Gordon, Richard Carlson as well. We'd like to welcome you today to AptarGroup. Representing the company is CFO Vanessa Kanu, who has been with the company for about 18 months. Also attending from Aptar is Mary Skafidas, in the room as well. As many of you may or may not know, Aptar is the global leader in dosing, dispensing, and protection technologies for drugs and consumer products. Pharmaceutical is by far its largest segment in EBITDA terms, with the other two segments being beauty and closures. Thank you all for attending again. This is intended to be a fireside chat. To the extent folks have questions in the room, don't hesitate to ask. Afternoon. afternoon I'm Gabe Hajde, Wells Fargo's paper and packaging analyst, joined by my colleagues today. i'm gabe hajde wells fargo's paper and packaging analyst joined by my colleagues today I think maybe one of them might be in the room, Bailey Gordon, Richard Carlson as well. i think maybe one of them might be in the room bailey gordon richard carlson as well We'd like to welcome you today to AptarGroup. we'd like to welcome you today to aptargroup Representing the company is CFO Vanessa Kanu, who has been with the company for about 18 months. representing the company is cfo vanessa kanu who has been with the company for about 18 months Also attending from Aptar is Mary Skafidas, in the room as well. also attending from aptar is mary skafidas in the room as well As many of you may or may not know, Aptar is the global leader in dosing, dispensing, and protection technologies for drugs and consumer products. as many of you may or may not know aptar is the global leader in dosing dispensing and protection technologies for drugs and consumer products Pharmaceutical is by far its largest segment in EBITDA terms, with the other two segments being beauty and closures. pharmaceutical is by far its largest segment in ebitda terms with the other two segments being beauty and closures Thank you all for attending again. thank you all for attending again This is intended to be a fireside chat. this is intended to be a fireside chat To the extent folks have questions in the room, don't hesitate to ask. to the extent folks have questions in the room don't hesitate to ask With that introduction, Vanessa, I think you guys have a couple of slides and prepared remarks to go through. With that introduction, Vanessa, I think you guys have a couple of slides and prepared remarks to go through. with that introduction vanessa i think you guys have a couple of slides and prepared remarks to go through

Speaker 2: We have a presentation. We have a presentation. we have a presentation

Speaker 1: Yeah. Yeah. yeah

Speaker 2: Which, let me just make sure this clicker works. Are you ready? Which, let me just make sure this clicker works. which let me just make sure this clicker works Are you ready? are you ready

Speaker 1: Yeah. Love to hear everything about Aptar today. Yeah. yeah Love to hear everything about Aptar today. love to hear everything about aptar today

Speaker 2: Okay, fantastic. Well, thank you, Gabe. Thanks, everyone, for joining us. Thank you for describing what we do. I think if I were to synthesize this, it really just means that we are an expert in the end user. We create experiences for patients, for consumers. At the core, we are a technology company. We own the IP of everything that we manufacture, so we're not a contract manufacturer. We're truly global, operating in about 20 countries across four regions. The lion's share for us being in Europe. As you can see here, for the year ended 2025, $3.8 billion in revenue, about 46% of that from pharma, beauty being 35%, and closures 19%. You can kind of see there as well what the split of our adjusted EBITDA is by segment. Okay, fantastic. okay fantastic Well, thank you, Gabe. well thank you gabe Thanks, everyone, for joining us. thanks everyone for joining us Thank you for describing what we do. thank you for describing what we do I think if I were to synthesize this, it really just means that we are an expert in the end user. i think if i were to synthesize this it really just means that we are an expert in the end user We create experiences for patients, for consumers. we create experiences for patients for consumers At the core, we are a technology company. at the core we are a technology company We own the IP of everything that we manufacture, so we're not a contract manufacturer. we own the ip of everything that we manufacture so we're not a contract manufacturer We're truly global, operating in about 20 countries across four regions. we're truly global operating in about 20 countries across four regions The lion's share for us being in Europe. the lion's share for us being in europe As you can see here, for the year ended 2025, $3.8 billion in revenue, about 46% of that from pharma, beauty being 35%, and closures 19%. as you can see here for the year ended 2025 $3.8 billion in revenue about 46% of that from pharma beauty being 35% and closures 19% You can kind of see there as well what the split of our adjusted EBITDA is by segment. you can kind of see there as well what the split of our adjusted ebitda is by segment I'll also add, as you look at our segments across all of these end markets, we've got really good growing end markets and really good growth potential. We have a strong balance sheet. Our leverage is actually towards the lower end of many of our peers, if not most of them. Feeling very proud about that. Really, that strong balance sheet is also very helpful to us, particularly for our pharma customers, as you think through the long development cycles in pharma. Our customers want to make sure that they're dealing with a partner who is very financially strong and can stay through the course of those long development cycles as well. Also very proud of our capital allocation and return of capital to shareholders. In the last five years, we've returned about $1.2 billion to shareholders through dividends and through buybacks. I'll also add, as you look at our segments across all of these end markets, we've got really good growing end markets and really good growth potential. i'll also add as you look at our segments across all of these end markets we've got really good growing end markets and really good growth potential We have a strong balance sheet. we have a strong balance sheet Our leverage is actually towards the lower end of many of our peers, if not most of them. our leverage is actually towards the lower end of many of our peers if not most of them Feeling very proud about that. feeling very proud about that Really, that strong balance sheet is also very helpful to us, particularly for our pharma customers, as you think through the long development cycles in pharma. really that strong balance sheet is also very helpful to us particularly for our pharma customers as you think through the long development cycles in pharma Our customers want to make sure that they're dealing with a partner who is very financially strong and can stay through the course of those long development cycles as well. our customers want to make sure that they're dealing with a partner who is very financially strong and can stay through the course of those long development cycles as well Also very proud of our capital allocation and return of capital to shareholders. also very proud of our capital allocation and return of capital to shareholders In the last five years, we've returned about $1.2 billion to shareholders through dividends and through buybacks. in the last five years we've returned about $1.2 billion to shareholders through dividends and through buybacks Of course, we're very proud of our sustainability credentials. We get a lot of awards for sustainability. I won't go through all of them that you see on the slides here. Certainly, this is a differentiator for our customers, particularly in the consumer businesses and also for our employees, in terms of attraction and retention of our employees. This really just looks at technologies and industrial capabilities and how these are shared across our different end markets. When you look at the verticals here, you see the different end markets that we play in, and the horizontals kind of show you how we share these technology and technology platforms across our end markets. For example, whether it's dispensing fine mist pumps or frankly airless systems or even aerosol valves and bag-on-valve, you see how we share these technologies across different end markets that we serve. Of course, we're very proud of our sustainability credentials. of course we're very proud of our sustainability credentials We get a lot of awards for sustainability. we get a lot of awards for sustainability I won't go through all of them that you see on the slides here. i won't go through all of them that you see on the slides here Certainly, this is a differentiator for our customers, particularly in the consumer businesses and also for our employees, in terms of attraction and retention of our employees. certainly this is a differentiator for our customers particularly in the consumer businesses and also for our employees in terms of attraction and retention of our employees This really just looks at technologies and industrial capabilities and how these are shared across our different end markets. this really just looks at technologies and industrial capabilities and how these are shared across our different end markets When you look at the verticals here, you see the different end markets that we play in, and the horizontals kind of show you how we share these technology and technology platforms across our end markets. when you look at the verticals here you see the different end markets that we play in and the horizontals kind of show you how we share these technology and technology platforms across our end markets For example, whether it's dispensing fine mist pumps or frankly airless systems or even aerosol valves and bag-on-valve, you see how we share these technologies across different end markets that we serve. for example whether it's dispensing fine mist pumps or frankly airless systems or even aerosol valves and bag-on-valve you see how we share these technologies across different end markets that we serve You look at the different industrial capabilities, precision injection molding, high-speed assembly, AI, and quality control. These are all areas where we share these capabilities across our entire footprint. You may also know that our pharma business was actually born from our beauty business, speaking also to the synergies that we share across our different end markets and platforms. I mentioned earlier that we're a technology company, and we own the IP of everything that we manufacture, and this really gives you a little more color around that. We've got about 7,300 patents across our portfolio. You see there pharma being just around two-thirds of that. For us, these patents are obviously know-how, trademarks, and patents. You look at the different industrial capabilities, precision injection molding, high-speed assembly, AI, and quality control. you look at the different industrial capabilities precision injection molding high-speed assembly ai and quality control These are all areas where we share these capabilities across our entire footprint. these are all areas where we share these capabilities across our entire footprint You may also know that our pharma business was actually born from our beauty business, speaking also to the synergies that we share across our different end markets and platforms. you may also know that our pharma business was actually born from our beauty business speaking also to the synergies that we share across our different end markets and platforms I mentioned earlier that we're a technology company, and we own the IP of everything that we manufacture, and this really gives you a little more color around that. i mentioned earlier that we're a technology company and we own the ip of everything that we manufacture and this really gives you a little more color around that We've got about 7,300 patents across our portfolio. we've got about 7,300 patents across our portfolio You see there pharma being just around two-thirds of that. you see there pharma being just around two-thirds of that For us, these patents are obviously know-how, trademarks, and patents. for us these patents are obviously know-how trademarks and patents This is really important to us, and this is why we defend our patents when we need to, because clearly from our perspective, this is what differentiates us relative to a lot of our competition. Innovation is how we drive change and growth across all three of our segments. Frankly, it's also a lot of the times how we also reprice and price upwards, is through coming to market with new innovative solutions. Patents and IP being a key component of that. I mentioned earlier that we are in growing end markets, and I really like this slide because when you think about any market, the first question is, well, what are the secular trends in that market, right? When you look across our three businesses, pharma, beauty, and closures, you can see the size of our TAM on this slide. This is really important to us, and this is why we defend our patents when we need to, because clearly from our perspective, this is what differentiates us relative to a lot of our competition. this is really important to us and this is why we defend our patents when we need to because clearly from our perspective this is what differentiates us relative to a lot of our competition Innovation is how we drive change and growth across all three of our segments. innovation is how we drive change and growth across all three of our segments Frankly, it's also a lot of the times how we also reprice and price upwards, is through coming to market with new innovative solutions. frankly it's also a lot of the times how we also reprice and price upwards is through coming to market with new innovative solutions Patents and IP being a key component of that. patents and ip being a key component of that I mentioned earlier that we are in growing end markets, and I really like this slide because when you think about any market, the first question is, well, what are the secular trends in that market, right? i mentioned earlier that we are in growing end markets and i really like this slide because when you think about any market the first question is well what are the secular trends in that market right When you look across our three businesses, pharma, beauty, and closures, you can see the size of our TAM on this slide. when you look across our three businesses pharma beauty and closures you can see the size of our tam on this slide You can also see here, these are market growth rates, not Aptar growth rates. We are in a pharma packaging end market that's $165 billion, and the market growth is 7%. You can see what the market growth there is for beauty, as well as for closures. I will say, going back to my earlier comments around innovation, when you think about closures, for example, we have consistently grown better than market, higher than market, and that's through category conversion. The category conversion comes through driving innovation and new innovative products to the market. This is what makes us frankly excited about our long-term growth potential because we are in markets that do have secular tailwinds. Also, it's a highly diversified model. As we typically say, no single product is going to make or break our long-term target. You can also see here, these are market growth rates, not Aptar growth rates. you can also see here these are market growth rates not aptar growth rates We are in a pharma packaging end market that's $165 billion, and the market growth is 7%. we are in a pharma packaging end market that's $165 billion and the market growth is 7% You can see what the market growth there is for beauty, as well as for closures. you can see what the market growth there is for beauty as well as for closures I will say, going back to my earlier comments around innovation, when you think about closures, for example, we have consistently grown better than market, higher than market, and that's through category conversion. i will say going back to my earlier comments around innovation when you think about closures for example we have consistently grown better than market higher than market and that's through category conversion The category conversion comes through driving innovation and new innovative products to the market. the category conversion comes through driving innovation and new innovative products to the market This is what makes us frankly excited about our long-term growth potential because we are in markets that do have secular tailwinds. this is what makes us frankly excited about our long-term growth potential because we are in markets that do have secular tailwinds Also, it's a highly diversified model. also it's a highly diversified model As we typically say, no single product is going to make or break our long-term target. as we typically say no single product is going to make or break our long-term target Of course, on a shorter-term basis, you'll have some products be stronger contributors than others. When you look at the overall longer-term picture, no one product is going to make or break our overall long-term trajectory. I talked a bit earlier about capital deployment and $1.2 billion return to shareholders. When you look at our capital allocation, and you look at the last several years, typically about two-thirds of our capital has been reinvested back in our business. Why? We're a growing business, and we also get really good returns. These are investments, both organic capital investments as well as M&A. Really good returns, and of course, we preferentially allocate capital to pharma, given the higher growth, higher profitability profile of pharma relative to other segments. Of course, on a shorter-term basis, you'll have some products be stronger contributors than others. of course on a shorter-term basis you'll have some products be stronger contributors than others When you look at the overall longer-term picture, no one product is going to make or break our overall long-term trajectory. I talked a bit earlier about capital deployment and $1.2 billion return to shareholders. when you look at the overall longer-term picture no one product is going to make or break our overall long-term trajectory. i talked a bit earlier about capital deployment and $1.2 billion return to shareholders When you look at our capital allocation, and you look at the last several years, typically about two-thirds of our capital has been reinvested back in our business. when you look at our capital allocation and you look at the last several years typically about two-thirds of our capital has been reinvested back in our business Why? why We're a growing business, and we also get really good returns. we're a growing business and we also get really good returns These are investments, both organic capital investments as well as M&A. these are investments both organic capital investments as well as m&a Really good returns, and of course, we preferentially allocate capital to pharma, given the higher growth, higher profitability profile of pharma relative to other segments. really good returns and of course we preferentially allocate capital to pharma given the higher growth higher profitability profile of pharma relative to other segments Of course, as I mentioned earlier, about a third of that being returned to shareholders, 32 years of annually increasing dividends. Of course, we also do some share buybacks. We've been very active in share buybacks, particularly over the past 12 to 14 months. Again, that remains a more discretionary element of our capital allocation framework. We already talked about sustainability and all the different awards that we see there. Just taking a little bit of a closer look at pharma. This is the growth engine of our business and will continue to be the growth engine of our business. We are differentiated here, not only through our very strong patent portfolio, but also the knowhow that we've built over the last 40 years. Of course, as I mentioned earlier, about a third of that being returned to shareholders, 32 years of annually increasing dividends. of course as i mentioned earlier about a third of that being returned to shareholders 32 years of annually increasing dividends Of course, we also do some share buybacks. of course we also do some share buybacks We've been very active in share buybacks, particularly over the past 12 to 14 months. we've been very active in share buybacks particularly over the past 12 to 14 months Again, that remains a more discretionary element of our capital allocation framework. again that remains a more discretionary element of our capital allocation framework We already talked about sustainability and all the different awards that we see there. we already talked about sustainability and all the different awards that we see there Just taking a little bit of a closer look at pharma. just taking a little bit of a closer look at pharma This is the growth engine of our business and will continue to be the growth engine of our business. this is the growth engine of our business and will continue to be the growth engine of our business We are differentiated here, not only through our very strong patent portfolio, but also the knowhow that we've built over the last 40 years. we are differentiated here not only through our very strong patent portfolio but also the knowhow that we've built over the last 40 years When you look at the key strengths, we've been so deeply involved in this market over the last 40 years through a lot of technical regulatory knowhow, and that's what we help our customers with. We help our customers through the life cycle, both from obviously from the very beginning, where we start earning service revenues right through to different parts of the drug development cycle. A lot of knowhow we've built here over the last 40 years, a lot of engineering and scientific knowhow. When you look at the customers that we serve, we are serving a lot of the big pharma companies and also delivering to their larger CMO partners as well. This shows drug sales by delivery route. We like this slide because it's a good way to characterize the end market. When you look at the key strengths, we've been so deeply involved in this market over the last 40 years through a lot of technical regulatory knowhow, and that's what we help our customers with. when you look at the key strengths we've been so deeply involved in this market over the last 40 years through a lot of technical regulatory knowhow and that's what we help our customers with We help our customers through the life cycle, both from obviously from the very beginning, where we start earning service revenues right through to different parts of the drug development cycle. we help our customers through the life cycle both from obviously from the very beginning where we start earning service revenues right through to different parts of the drug development cycle A lot of knowhow we've built here over the last 40 years, a lot of engineering and scientific knowhow. a lot of knowhow we've built here over the last 40 years a lot of engineering and scientific knowhow When you look at the customers that we serve, we are serving a lot of the big pharma companies and also delivering to their larger CMO partners as well. when you look at the customers that we serve we are serving a lot of the big pharma companies and also delivering to their larger cmo partners as well This shows drug sales by delivery route. this shows drug sales by delivery route We like this slide because it's a good way to characterize the end market. we like this slide because it's a good way to characterize the end market $1.7 trillion in the end market, oral being the largest part of that end market, followed by injectables. Respiratory, which is where a lot of our revenue comes from today, is a smaller part of the market, but actually a market that we do very well in. When you look at the margins across our portfolio, we actually make very strong margins in that part of the business, respiratory and nasal. We're also doing quite well in ophthalmic solutions. Our injectables business is growing really well, and doing quite well from a margin perspective as well. We also play a role in the oral route of delivery through our active material science portfolio. This gives you a sense for our historical growth trajectory, and I think it's important to level set on this because obviously, we've got some near-term headwinds with emergency medicine. $1.7 trillion in the end market, oral being the largest part of that end market, followed by injectables. $1.7 trillion in the end market oral being the largest part of that end market followed by injectables Respiratory, which is where a lot of our revenue comes from today, is a smaller part of the market, but actually a market that we do very well in. respiratory which is where a lot of our revenue comes from today is a smaller part of the market but actually a market that we do very well in When you look at the margins across our portfolio, we actually make very strong margins in that part of the business, respiratory and nasal. when you look at the margins across our portfolio we actually make very strong margins in that part of the business respiratory and nasal We're also doing quite well in ophthalmic solutions. we're also doing quite well in ophthalmic solutions Our injectables business is growing really well, and doing quite well from a margin perspective as well. our injectables business is growing really well and doing quite well from a margin perspective as well We also play a role in the oral route of delivery through our active material science portfolio. we also play a role in the oral route of delivery through our active material science portfolio This gives you a sense for our historical growth trajectory, and I think it's important to level set on this because obviously, we've got some near-term headwinds with emergency medicine. this gives you a sense for our historical growth trajectory and i think it's important to level set on this because obviously we've got some near-term headwinds with emergency medicine We've quantified that to investors, these are near-term headwinds. When you look at over a longer period of time, we've got long-term target growth of 7%-11% in pharma. When you look at the last 10 years, you see here we've done 9% CAGR. Not every single quarter was in that range, not every single year was in that range, but it's a CAGR. This is why, again, when we look at our targets, these are long-term growth targets, and you'll see that they're very much anchored in our historical growth profile, which we've achieved, and also, in our pipeline, which we're very excited about. Speaking of the pharma pipeline, the pipeline here, you'll hear us say pharma is a pipeline business. It's a numbers game for us, right? There's a lot of attrition in the pharma cycle. We've quantified that to investors, these are near-term headwinds. we've quantified that to investors these are near-term headwinds When you look at over a longer period of time, we've got long-term target growth of 7%-11% in pharma. when you look at over a longer period of time we've got long-term target growth of 7%-11% in pharma When you look at the last 10 years, you see here we've done 9% CAGR. when you look at the last 10 years you see here we've done 9% cagr Not every single quarter was in that range, not every single year was in that range, but it's a CAGR. not every single quarter was in that range not every single year was in that range but it's a cagr This is why, again, when we look at our targets, these are long-term growth targets, and you'll see that they're very much anchored in our historical growth profile, which we've achieved, and also, in our pipeline, which we're very excited about. this is why again when we look at our targets these are long-term growth targets and you'll see that they're very much anchored in our historical growth profile which we've achieved and also in our pipeline which we're very excited about Speaking of the pharma pipeline, the pipeline here, you'll hear us say pharma is a pipeline business. speaking of the pharma pipeline the pipeline here you'll hear us say pharma is a pipeline business It's a numbers game for us, right? it's a numbers game for us right There's a lot of attrition in the pharma cycle. there's a lot of attrition in the pharma cycle We want a pipeline that is big, that is growing, and that as that pipeline converts, that obviously contributes to revenue growth. When you look at the pipeline over the last five years, it has grown significantly, not only in terms of scale, but also in terms of scope. The pipeline has become a lot more diversified. This shows you what the top 8 areas are, therapeutic areas are in our pipeline. I won't go through all of them, but you can see here it is fairly well diversified, which is very exciting to us because, again, no single product is going to make or break that long-term growth profile. Top three items, respiratory, biologics, and systemic nasal drug delivery, SNDD, which is essentially delivering medicines through the nose-to-brain, a very exciting area of growth for us in the future. We want a pipeline that is big, that is growing, and that as that pipeline converts, that obviously contributes to revenue growth. we want a pipeline that is big that is growing and that as that pipeline converts that obviously contributes to revenue growth When you look at the pipeline over the last five years, it has grown significantly, not only in terms of scale, but also in terms of scope. when you look at the pipeline over the last five years it has grown significantly not only in terms of scale but also in terms of scope The pipeline has become a lot more diversified. the pipeline has become a lot more diversified This shows you what the top 8 areas are, therapeutic areas are in our pipeline. this shows you what the top 8 areas are therapeutic areas are in our pipeline I won't go through all of them, but you can see here it is fairly well diversified, which is very exciting to us because, again, no single product is going to make or break that long-term growth profile. i won't go through all of them but you can see here it is fairly well diversified which is very exciting to us because again no single product is going to make or break that long-term growth profile Top three items, respiratory, biologics, and systemic nasal drug delivery, SNDD, which is essentially delivering medicines through the nose-to-brain, a very exciting area of growth for us in the future. top three items respiratory biologics and systemic nasal drug delivery sndd which is essentially delivering medicines through the nose-to-brain a very exciting area of growth for us in the future We are seeing more and more drugs being administered nasally, which bodes very well for us given what I said earlier in terms of our participation and really our level of experience in nasally administered therapies. This slide is really important because it really shows you how we actually grow over the life cycle of a drug. In the early days, we typically provide services to our customers. We are earning revenues from the early days. Then it shows you what happens when the drug goes from originator to generic to over-the-counter. So you can see there how we generate revenue in those early days with the originator. The drug then goes off patent. It is the API that goes off patent. We are part of the Drug Master File, and so when the generic comes online, they tend to use our product as well. Why? We are seeing more and more drugs being administered nasally, which bodes very well for us given what I said earlier in terms of our participation and really our level of experience in nasally administered therapies. we are seeing more and more drugs being administered nasally which bodes very well for us given what i said earlier in terms of our participation and really our level of experience in nasally administered therapies This slide is really important because it really shows you how we actually grow over the life cycle of a drug. this slide is really important because it really shows you how we actually grow over the life cycle of a drug In the early days, we typically provide services to our customers. in the early days we typically provide services to our customers We are earning revenues from the early days. we are earning revenues from the early days Then it shows you what happens when the drug goes from originator to generic to over-the-counter. then it shows you what happens when the drug goes from originator to generic to over-the-counter So you can see there how we generate revenue in those early days with the originator. so you can see there how we generate revenue in those early days with the originator The drug then goes off patent. the drug then goes off patent It is the API that goes off patent. it is the api that goes off patent We are part of the Drug Master File, and so when the generic comes online, they tend to use our product as well. we are part of the drug master file and so when the generic comes online they tend to use our product as well Why? why Because if they don't, they have to go back through, because we are part of the Drug Master File, they have to go back through clinical trials. That adds a level of stickiness to our revenues, and our margin profile doesn't change when we go from originator to generic, which is pretty exciting. Then, of course, when the drug then goes over the counter, the market expands, volumes continue to expand, and our delivery devices are also part of that. And so volumes expand, we participate in that volume growth, and our margin profile doesn't change. It is actually the same and sometimes even better, depending on the particular product. So this tells you how our revenues tend to grow and compound over time. Because if they don't, they have to go back through, because we are part of the Drug Master File, they have to go back through clinical trials. because if they don't they have to go back through because we are part of the drug master file they have to go back through clinical trials That adds a level of stickiness to our revenues, and our margin profile doesn't change when we go from originator to generic, which is pretty exciting. that adds a level of stickiness to our revenues and our margin profile doesn't change when we go from originator to generic which is pretty exciting Then, of course, when the drug then goes over the counter, the market expands, volumes continue to expand, and our delivery devices are also part of that. then of course when the drug then goes over the counter the market expands volumes continue to expand and our delivery devices are also part of that And so volumes expand, we participate in that volume growth, and our margin profile doesn't change. and so volumes expand we participate in that volume growth and our margin profile doesn't change It is actually the same and sometimes even better, depending on the particular product. it is actually the same and sometimes even better depending on the particular product So this tells you how our revenues tend to grow and compound over time. so this tells you how our revenues tend to grow and compound over time Again, this is just really adding more color to my earlier comments about how we support a number of our customers through the drug development life cycle. Again, this also speaks to all the different therapeutic areas that we are seeing growth in our pipeline, and the key message here is diversification. Diversification, no one product, no one area, and this is what really excites us, particularly in the nose-to-brain area. Very quickly touching on beauty, a $1.3 billion business. Beauty, we went through a de-stocking cycle, particularly with high-end fragrance in the last couple of years. We are now seeing growth again in beauty. We saw growth overall, 2% core sales growth in 2025. We ended 2025 with positive growth in Q4. We also just had good growth in Q1 of this year. Again, this is just really adding more color to my earlier comments about how we support a number of our customers through the drug development life cycle. again this is just really adding more color to my earlier comments about how we support a number of our customers through the drug development life cycle Again, this also speaks to all the different therapeutic areas that we are seeing growth in our pipeline, and the key message here is diversification. Diversification, no one product, no one area, and this is what really excites us, particularly in the nose-to-brain area. again this also speaks to all the different therapeutic areas that we are seeing growth in our pipeline and the key message here is diversification. diversification no one product no one area and this is what really excites us particularly in the nose-to-brain area Very quickly touching on beauty, a $1.3 billion business. very quickly touching on beauty, a $1.3 billion business Beauty, we went through a de-stocking cycle, particularly with high-end fragrance in the last couple of years. beauty we went through a de-stocking cycle particularly with high-end fragrance in the last couple of years We are now seeing growth again in beauty. we are now seeing growth again in beauty We saw growth overall, 2% core sales growth in 2025. we saw growth overall 2% core sales growth in 2025 We ended 2025 with positive growth in Q4. we ended 2025 with positive growth in q4 We also just had good growth in Q1 of this year. we also just had good growth in q1 of this year As we've said on our last earnings call, we do expect to see strong growth in beauty also through the rest of 2026. We're very excited about that. We do have some short-term operational challenges that we talked about last quarter. We're impacted by a certain supplier, and we're working through some of those issues. We do expect the margins to improve, particularly as we get through the balance of 2026. You can see here, again, the diversification, not only geographically speaking, and by the way, the 60% that goes to Europe, our customers tend to ship that to other regions as well. That's just where we're shipping to the customers. They tend to actually ship that outward. As we've said on our last earnings call, we do expect to see strong growth in beauty also through the rest of 2026. as we've said on our last earnings call we do expect to see strong growth in beauty also through the rest of 2026 We're very excited about that. we're very excited about that We do have some short-term operational challenges that we talked about last quarter. we do have some short-term operational challenges that we talked about last quarter We're impacted by a certain supplier, and we're working through some of those issues. we're impacted by a certain supplier and we're working through some of those issues We do expect the margins to improve, particularly as we get through the balance of 2026. we do expect the margins to improve particularly as we get through the balance of 2026 You can see here, again, the diversification, not only geographically speaking, and by the way, the 60% that goes to Europe, our customers tend to ship that to other regions as well. you can see here again the diversification not only geographically speaking and by the way the 60% that goes to europe our customers tend to ship that to other regions as well That's just where we're shipping to the customers. that's just where we're shipping to the customers They tend to actually ship that outward. they tend to actually ship that outward A very globally diversified business for us, and you can see all the very large names and brands that you'll recognize in terms of the customers that we serve in beauty. Also a very diversified portfolio from fragrance pumps to airless systems to turnkey solutions that we provide for our customers. Last but not least, closures, which is a newer segment for us that was created just a few years ago by consolidating our food and beverage business and some personal care out of our beauty business. That business is doing quite well for us. We continue to have very good product growth in closures. Margins have generally been at the lower end of our long-term target range. We also had some operational challenges there in the last couple of quarters, which we are working through. A very globally diversified business for us, and you can see all the very large names and brands that you'll recognize in terms of the customers that we serve in beauty. a very globally diversified business for us and you can see all the very large names and brands that you'll recognize in terms of the customers that we serve in beauty Also a very diversified portfolio from fragrance pumps to airless systems to turnkey solutions that we provide for our customers. also a very diversified portfolio from fragrance pumps to airless systems to turnkey solutions that we provide for our customers Last but not least, closures, which is a newer segment for us that was created just a few years ago by consolidating our food and beverage business and some personal care out of our beauty business. last but not least closures which is a newer segment for us that was created just a few years ago by consolidating our food and beverage business and some personal care out of our beauty business That business is doing quite well for us. that business is doing quite well for us We continue to have very good product growth in closures. we continue to have very good product growth in closures Margins have generally been at the lower end of our long-term target range. margins have generally been at the lower end of our long-term target range We also had some operational challenges there in the last couple of quarters, which we are working through. we also had some operational challenges there in the last couple of quarters which we are working through We see good growth potential in closures and also the opportunity to get our margins more consistently in that long-term target range. Again, here, a very diversified portfolio, just looking at the breadth of all the different products that we bring to the market in this part of our business. Key takeaways, I think it's very clear the fundamentals of our pharma business, we've been very, very strong. What excites us is frankly, the pipeline. It's good that our growth historically has been consistent, but as we look outward, very excited about the breadth of the pipeline and the growth in the pipeline as well. Injectables is doing very well. You would have seen from the last few quarters of our earnings call, double-digit growth in injectables, and so we're excited about that. We see good growth potential in closures and also the opportunity to get our margins more consistently in that long-term target range. we see good growth potential in closures and also the opportunity to get our margins more consistently in that long-term target range Again, here, a very diversified portfolio, just looking at the breadth of all the different products that we bring to the market in this part of our business. again here a very diversified portfolio just looking at the breadth of all the different products that we bring to the market in this part of our business Key takeaways, I think it's very clear the fundamentals of our pharma business, we've been very, very strong. key takeaways i think it's very clear the fundamentals of our pharma business we've been very very strong What excites us is frankly, the pipeline. what excites us is frankly the pipeline It's good that our growth historically has been consistent, but as we look outward, very excited about the breadth of the pipeline and the growth in the pipeline as well. it's good that our growth historically has been consistent but as we look outward very excited about the breadth of the pipeline and the growth in the pipeline as well Injectables is doing very well. injectables is doing very well You would have seen from the last few quarters of our earnings call, double-digit growth in injectables, and so we're excited about that. you would have seen from the last few quarters of our earnings call double-digit growth in injectables and so we're excited about that Innovation, a key driver of our growth, not only in the past, but also going forward. Of course, the strong balance sheet that I spoke to, which is something that we're very proud of because it gives us the flexibility to invest back into our business, but also return capital to our highly valued shareholders. With that, Gabe, let me stop there. That was a quick flyby. Thank you, Mary. That was more than a couple of slides. Innovation, a key driver of our growth, not only in the past, but also going forward. innovation a key driver of our growth not only in the past but also going forward Of course, the strong balance sheet that I spoke to, which is something that we're very proud of because it gives us the flexibility to invest back into our business, but also return capital to our highly valued shareholders. of course the strong balance sheet that i spoke to which is something that we're very proud of because it gives us the flexibility to invest back into our business but also return capital to our highly valued shareholders With that, Gabe, let me stop there. with that gabe let me stop there That was a quick flyby. that was a quick flyby Thank you, Mary. thank you mary That was more than a couple of slides. that was more than a couple of slides

Speaker 1: Appreciate, it's a general session, it's an equities conference here at Wells Fargo today. We recently got more constructive on the name March 20th, part of it was the strong balance sheet and the resilience of your pharma segment. There's a lot of detail in here that it's tough to walk through everything that you do for your customers. We'll start on the negatives first. You mentioned this emergency medicine de-stocking, that's been a little bit of a nagging issue. You talk about hitting singles and doubles. I've covered the stock now for close to 20 years. That's historically speaking been the case. Appreciate, it's a general session, it's an equities conference here at Wells Fargo today. appreciate it's a general session it's an equities conference here at wells fargo today We recently got more constructive on the name March 20th, part of it was the strong balance sheet and the resilience of your pharma segment. we recently got more constructive on the name march 20th part of it was the strong balance sheet and the resilience of your pharma segment There's a lot of detail in here that it's tough to walk through everything that you do for your customers. there's a lot of detail in here that it's tough to walk through everything that you do for your customers We'll start on the negatives first. we'll start on the negatives first You mentioned this emergency medicine de-stocking, that's been a little bit of a nagging issue. you mentioned this emergency medicine de-stocking that's been a little bit of a nagging issue You talk about hitting singles and doubles. you talk about hitting singles and doubles I've covered the stock now for close to 20 years. i've covered the stock now for close to 20 years That's historically speaking been the case. that's historically speaking been the case That singles and doubles, you consistently deliver. NARCAN naloxone is a little bit of an exception to that. That singles and doubles, you consistently deliver. that singles and doubles you consistently deliver NARCAN naloxone is a little bit of an exception to that. narcan naloxone is a little bit of an exception to that You kind of framed up for us that it was going to be down about 35%, maybe 40% this year, going from maybe 7% of revenue to 5% of revenue. Can you just talk about how that's kind of the cadence of that through the first half? Is it playing out the way you expected? From a profitability standpoint, I think it tends to be one of the more attractive areas within your portfolio. Operating leverage, de-leverage. Is there anything unique about that product relative to everything else that you'd like to call out for us? You kind of framed up for us that it was going to be down about 35%, maybe 40% this year, going from maybe 7% of revenue to 5% of revenue. you kind of framed up for us that it was going to be down about 35% maybe 40% this year going from maybe 7% of revenue to 5% of revenue Can you just talk about how that's kind of the cadence of that through the first half? can you just talk about how that's kind of the cadence of that through the first half Is it playing out the way you expected? is it playing out the way you expected From a profitability standpoint, I think it tends to be one of the more attractive areas within your portfolio. from a profitability standpoint i think it tends to be one of the more attractive areas within your portfolio Operating leverage, de-leverage. operating leverage de-leverage Is there anything unique about that product relative to everything else that you'd like to call out for us? is there anything unique about that product relative to everything else that you'd like to call out for us

Speaker 2: Maybe just stepping back, NARCAN naloxone, pharma generally has a pretty long cycle. It takes a while to bring these products to market. Let's talk about why we saw such rapid growth in a short amount of time. Clearly, we were in a crisis, opiate crisis, and the FDA accelerated the timelines. We saw a very large amount of growth over a much, much truncated cycle. It got to a point where we did start to see that inventory was likely building up. This is a channel that is very, very opaque. There's not a lot of data, third-party external data. You can't go to IQVIA, you can't go to Nielsen, you can't go to other credible sources of external data to say, "I'll just plug these numbers into my model and just see what it spits out," right? Maybe just stepping back, NARCAN naloxone, pharma generally has a pretty long cycle. maybe just stepping back narcan naloxone pharma generally has a pretty long cycle It takes a while to bring these products to market. it takes a while to bring these products to market Let's talk about why we saw such rapid growth in a short amount of time. let's talk about why we saw such rapid growth in a short amount of time Clearly, we were in a crisis, opiate crisis, and the FDA accelerated the timelines. clearly we were in a crisis opiate crisis and the fda accelerated the timelines We saw a very large amount of growth over a much, much truncated cycle. we saw a very large amount of growth over a much much truncated cycle It got to a point where we did start to see that inventory was likely building up. it got to a point where we did start to see that inventory was likely building up This is a channel that is very, very opaque. this is a channel that is very very opaque There's not a lot of data, third-party external data. there's not a lot of data third-party external data You can't go to IQVIA, you can't go to Nielsen, you can't go to other credible sources of external data to say, "I'll just plug these numbers into my model and just see what it spits out," right? you can't go to iqvia you can't go to nielsen you can't go to other credible sources of external data to say "i'll just plug these numbers into my model and just see what it spits out," right That's a very opaque channel. Frankly, what's the channel for this product? Hospitals, fire departments, libraries, and so on. There's not really one single source of information. We started to see that we thought inventory was building up, and of course, our customers, however, because we're B2B, kept on ordering, and of course, you're going to fulfill your customer's orders. You're not going to tell your customers, "No thanks, I'm going to hold your order because I think you might be building up inventory." They also had some of their data possibly incorrect. That's a very opaque channel. that's a very opaque channel Frankly, what's the channel for this product? frankly what's the channel for this product Hospitals, fire departments, libraries, and so on. hospitals fire departments libraries and so on There's not really one single source of information. there's not really one single source of information We started to see that we thought inventory was building up, and of course, our customers, however, because we're B2B, kept on ordering, and of course, you're going to fulfill your customer's orders. we started to see that we thought inventory was building up and of course our customers however because we're b2b kept on ordering and of course you're going to fulfill your customer's orders You're not going to tell your customers, "No thanks, I'm going to hold your order because I think you might be building up inventory." They also had some of their data possibly incorrect. you're not going to tell your customers "no thanks i'm going to hold your order because i think you might be building up inventory." they also had some of their data possibly incorrect We suspected we were building up inventory, and we started to put our own information together, and shared these concerns. We were able to quantify it, to your point, Gabe, and we did quantify that Q4 of 2025 would be a pretty big impact, and we shared what that was. Then for 2026, we said it was about a $65 million full year headwind is what we expected. We also said roughly two-thirds of that would be the first-half impact, and about a third of that would be the second-half impact. We are so far tracking pretty close to those estimates. Partly good forecasting on our end, partly luck because we can't all take the credit for everything that goes well, but it's tracking pretty closely so far. That all bodes well. We suspected we were building up inventory, and we started to put our own information together, and shared these concerns. we suspected we were building up inventory and we started to put our own information together and shared these concerns We were able to quantify it, to your point, Gabe, and we did quantify that Q4 of 2025 would be a pretty big impact, and we shared what that was. we were able to quantify it to your point gabe and we did quantify that q4 of 2025 would be a pretty big impact and we shared what that was Then for 2026, we said it was about a $65 million full year headwind is what we expected. then for 2026 we said it was about a $65 million full year headwind is what we expected We also said roughly two-thirds of that would be the first-half impact, and about a third of that would be the second-half impact. we also said roughly two-thirds of that would be the first-half impact and about a third of that would be the second-half impact We are so far tracking pretty close to those estimates. we are so far tracking pretty close to those estimates Partly good forecasting on our end, partly luck because we can't all take the credit for everything that goes well, but it's tracking pretty closely so far. partly good forecasting on our end partly luck because we can't all take the credit for everything that goes well but it's tracking pretty closely so far That all bodes well. that all bodes well To your point, this is a very high-margin part of our portfolio, emergency medicine, saving lives, controlling the dosage, five nines of reliability, and quality. Of course, in pharma, these are the kinds of medicines that command a pretty high price point. Very high margins for us. As we experience these headwinds to the top line driven from NARCAN, of course, that is having an outsized impact to the bottom line. With all that being said, we're super proud of the fact that even in Q1, when we looked at the year-over-year impacts, pharma still was in its long-term target margin range. I think that also speaks to the strength of the rest of our portfolio. Also other mitigating factors that we're taking internally, just so that we're not seeing all of this flow straight through to the bottom line. To your point, this is a very high-margin part of our portfolio, emergency medicine, saving lives, controlling the dosage, five nines of reliability, and quality. to your point this is a very high-margin part of our portfolio emergency medicine saving lives controlling the dosage five nines of reliability and quality Of course, in pharma, these are the kinds of medicines that command a pretty high price point. of course in pharma these are the kinds of medicines that command a pretty high price point Very high margins for us. very high margins for us As we experience these headwinds to the top line driven from NARCAN, of course, that is having an outsized impact to the bottom line. as we experience these headwinds to the top line driven from narcan of course that is having an outsized impact to the bottom line With all that being said, we're super proud of the fact that even in Q1, when we looked at the year-over-year impacts, pharma still was in its long-term target margin range. with all that being said we're super proud of the fact that even in q1 when we looked at the year-over-year impacts pharma still was in its long-term target margin range I think that also speaks to the strength of the rest of our portfolio. i think that also speaks to the strength of the rest of our portfolio Also other mitigating factors that we're taking internally, just so that we're not seeing all of this flow straight through to the bottom line. also other mitigating factors that we're taking internally just so that we're not seeing all of this flow straight through to the bottom line

Speaker 1: I would agree with that. Just maybe specifically on emergency medicines or however you guys track that internally, would you consider that anecdotally, what we hear from first responders is that, unfortunately, it's still something that they're using on a day-to-day basis, and oftentimes they administer three at a time because you may not always necessarily get the response you want. I would agree with that. i would agree with that Just maybe specifically on emergency medicines or however you guys track that internally, would you consider that anecdotally, what we hear from first responders is that, unfortunately, it's still something that they're using on a day-to-day basis, and oftentimes they administer three at a time because you may not always necessarily get the response you want. just maybe specifically on emergency medicines or however you guys track that internally would you consider that anecdotally what we hear from first responders is that unfortunately it's still something that they're using on a day-to-day basis and oftentimes they administer three at a time because you may not always necessarily get the response you want

Speaker 2: Yeah Yeah yeah

Speaker 1: After the first one. Just any sort of dialogue with customers that would suggest this will be a growing product line for Aptar, or is it too soon to tell? After the first one. after the first one Just any sort of dialogue with customers that would suggest this will be a growing product line for Aptar, or is it too soon to tell? just any sort of dialogue with customers that would suggest this will be a growing product line for aptar or is it too soon to tell

Speaker 2: Certainly, we want to get through the destocking dynamics. We think that the destocking should be behind us at the end of this year. Back to my earlier points about we're tracking to that. The question is what happens after, right? There was a period of uncertainty around the funding climate, that seems to have stabilized. Funding is important for this product because it's largely funded by the government. That's how states and locals get the budget to buy these lifesaving products. Funding is really important and we had a period of early last year, there was a lot of uncertainty. Is it cut, is it not cut? Then we got some clarification from the administration. Certainly, we want to get through the destocking dynamics. certainly we want to get through the destocking dynamics We think that the destocking should be behind us at the end of this year. we think that the destocking should be behind us at the end of this year Back to my earlier points about we're tracking to that. back to my earlier points about we're tracking to that The question is what happens after, right? the question is what happens after right There was a period of uncertainty around the funding climate, that seems to have stabilized. there was a period of uncertainty around the funding climate that seems to have stabilized Funding is important for this product because it's largely funded by the government. funding is important for this product because it's largely funded by the government That's how states and locals get the budget to buy these lifesaving products. that's how states and locals get the budget to buy these lifesaving products Funding is really important and we had a period of early last year, there was a lot of uncertainty. funding is really important and we had a period of early last year there was a lot of uncertainty Is it cut, is it not cut? is it cut is it not cut Then we got some clarification from the administration. then we got some clarification from the administration That climate is now stabilizing, and in fact, I think the funding expectations for 2027 are looking pretty healthy based on what we're seeing right now, which is good. Once we pass these destocking dynamics, unfortunately, the crisis is not behind us, right? The need for these lifesaving medications will continue. The originator in this space has certainly said publicly that they do expect this to be a high single to mid-single digit grower over time. For us, we think that's the right range once we're past this period. That climate is now stabilizing, and in fact, I think the funding expectations for 2027 are looking pretty healthy based on what we're seeing right now, which is good. that climate is now stabilizing and in fact i think the funding expectations for 2027 are looking pretty healthy based on what we're seeing right now which is good Once we pass these destocking dynamics, unfortunately, the crisis is not behind us, right? once we pass these destocking dynamics unfortunately the crisis is not behind us right The need for these lifesaving medications will continue. the need for these lifesaving medications will continue The originator in this space has certainly said publicly that they do expect this to be a high single to mid-single digit grower over time. the originator in this space has certainly said publicly that they do expect this to be a high single to mid-single digit grower over time For us, we think that's the right range once we're past this period. for us we think that's the right range once we're past this period

Speaker 1: Fairly consistent with the portfolio overall. Fairly consistent with the portfolio overall. fairly consistent with the portfolio overall

Speaker 2: Yeah. Yeah. yeah

Speaker 1: Okay. Okay. okay

Speaker 2: Yeah. Yeah. yeah

Speaker 1: One question that I'm trying to ask all the companies that are at our conference, I think it's relevant. How would you compare this recent acceleration in input cost to what we observed during the pandemic or 2021, 2022 timeframe? Obviously, everyone's pretty laser-focused on oil, petrochemical derivatives, which are somewhat impactful for your business from a raw material standpoint. But obviously, day-to-day transportation. One question that I'm trying to ask all the companies that are at our conference, I think it's relevant. one question that i'm trying to ask all the companies that are at our conference i think it's relevant How would you compare this recent acceleration in input cost to what we observed during the pandemic or 2021, 2022 timeframe? how would you compare this recent acceleration in input cost to what we observed during the pandemic or 2021 2022 timeframe Obviously, everyone's pretty laser-focused on oil, petrochemical derivatives, which are somewhat impactful for your business from a raw material standpoint. obviously everyone's pretty laser-focused on oil petrochemical derivatives which are somewhat impactful for your business from a raw material standpoint But obviously, day-to-day transportation. but obviously day-to-day transportation Those types of things, internal meetings or however you characterize it. How are you thinking about that? Then relationship with your customers, your ability to recover that. Those types of things, internal meetings or however you characterize it. those types of things internal meetings or however you characterize it How are you thinking about that? how are you thinking about that Then relationship with your customers, your ability to recover that. then relationship with your customers your ability to recover that

Speaker 2: Yeah. I would say we're better organized. Having experienced it before, what's different this time is we're better organized. At least from our organization, we were able to hit the ground running relatively quickly because we had already developed this muscle internally through COVID, through other periods of inflation. Frankly, also through tariffs last year. Yeah. yeah I would say we're better organized. i would say we're better organized Having experienced it before, what's different this time is we're better organized. having experienced it before what's different this time is we're better organized At least from our organization, we were able to hit the ground running relatively quickly because we had already developed this muscle internally through COVID, through other periods of inflation. at least from our organization we were able to hit the ground running relatively quickly because we had already developed this muscle internally through covid through other periods of inflation Frankly, also through tariffs last year. frankly also through tariffs last year Just name your inflation. There's been a lot of inflation in the last few years, right? Tariffs were similar to that extent. This time, we didn't see a lot in Q1. We started to see it towards the tail end of March. It didn't feature a lot in our commentary in our Q1 earnings. We did talk about it in terms of Q2 and beyond. We are seeing a significant amount of inflation. For us, the biggest impact is resin. Resin prices, particularly in our closure segment. Why closures? Well, closures just has a higher percentage of resin in the actual product itself compared to, say, pharma and beauty. Closures sees the biggest impact. In closures, we have indexation clauses in our contracts. We pass that on to customers. Just name your inflation. just name your inflation There's been a lot of inflation in the last few years, right? there's been a lot of inflation in the last few years right Tariffs were similar to that extent. tariffs were similar to that extent This time, we didn't see a lot in Q1. this time we didn't see a lot in q1 We started to see it towards the tail end of March. we started to see it towards the tail end of march It didn't feature a lot in our commentary in our Q1 earnings. it didn't feature a lot in our commentary in our q1 earnings We did talk about it in terms of Q2 and beyond. we did talk about it in terms of q2 and beyond We are seeing a significant amount of inflation. we are seeing a significant amount of inflation For us, the biggest impact is resin. for us the biggest impact is resin Resin prices, particularly in our closure segment. resin prices particularly in our closure segment Why closures? why closures Well, closures just has a higher percentage of resin in the actual product itself compared to, say, pharma and beauty. well closures just has a higher percentage of resin in the actual product itself compared to say pharma and beauty Closures sees the biggest impact. closures sees the biggest impact In closures, we have indexation clauses in our contracts. in closures we have indexation clauses in our contracts We pass that on to customers. we pass that on to customers The company has also done a really good job learning from those earlier experiences, Gabe, where we're now passing that on a much shorter time lag than before. If you go back many years, you would've seen a bit of a time differential where we incurred the cost, but we didn't quite pass it through right away, you saw some margin degradation, then we caught up. I think it's a lot smoother this time. We've built up that muscle internally, which is great. In beauty and in pharma, where we don't quite have the same level of indexation, just again for reasons I just mentioned, we're actually passing those cost increases through as discrete line items, as surcharges. It's raw materials cost, but frankly, it's also transportation. The company has also done a really good job learning from those earlier experiences, Gabe, where we're now passing that on a much shorter time lag than before. the company has also done a really good job learning from those earlier experiences gabe where we're now passing that on a much shorter time lag than before If you go back many years, you would've seen a bit of a time differential where we incurred the cost, but we didn't quite pass it through right away, you saw some margin degradation, then we caught up. if you go back many years you would've seen a bit of a time differential where we incurred the cost but we didn't quite pass it through right away you saw some margin degradation then we caught up I think it's a lot smoother this time. i think it's a lot smoother this time We've built up that muscle internally, which is great. we've built up that muscle internally which is great In beauty and in pharma, where we don't quite have the same level of indexation, just again for reasons I just mentioned, we're actually passing those cost increases through as discrete line items, as surcharges. in beauty and in pharma where we don't quite have the same level of indexation just again for reasons i just mentioned we're actually passing those cost increases through as discrete line items as surcharges It's raw materials cost, but frankly, it's also transportation. it's raw materials cost but frankly it's also transportation Energy prices are higher across the board, which has ripple effects across a number of things, and we've been passing those through. Again, so far, so good. Nobody likes getting a price increase. I don't like getting a price increase. We're very transparent. Again, that's because we've built that muscle over time where we're showing them and sharing with our customers exactly why and where the cost increases are coming from. Energy prices are higher across the board, which has ripple effects across a number of things, and we've been passing those through. energy prices are higher across the board which has ripple effects across a number of things and we've been passing those through Again, so far, so good. again so far, so good Nobody likes getting a price increase. nobody likes getting a price increase I don't like getting a price increase. i don't like getting a price increase We're very transparent. we're very transparent Again, that's because we've built that muscle over time where we're showing them and sharing with our customers exactly why and where the cost increases are coming from. again that's because we've built that muscle over time where we're showing them and sharing with our customers exactly why and where the cost increases are coming from

Speaker 1: Nola, I think the muscle memory is an important distinction. What's interesting is, you see that over time these companies develop that, things have changed for sure, I think, in terms of how go-to-market used to be versus where it is today. That's good to hear. What we also hear is your product typically as a portion of the, whether it's the retail price on the shelf- Nola, I think the muscle memory is an important distinction. nola i think the muscle memory is an important distinction What's interesting is, you see that over time these companies develop that, things have changed for sure, I think, in terms of how go-to-market used to be versus where it is today. what's interesting is you see that over time these companies develop that things have changed for sure i think in terms of how go-to-market used to be versus where it is today That's good to hear. that's good to hear What we also hear is your product typically as a portion of the, whether it's the retail price on the shelf- what we also hear is your product typically as a portion of the whether it's the retail price on the shelf-

Speaker 2: Yeah Yeah yeah

Speaker 1: or think about a drug, is typically a small fraction. They're focused on some other items. or think about a drug, is typically a small fraction. or think about a drug is typically a small fraction They're focused on some other items. they're focused on some other items

Speaker 2: That's correct. Yep. That's correct. that's correct Yep. yep

Speaker 1: You mentioned tariffs. I've got a different question about it. Just we kind of have this 150 days, I think now we're focused on Section 301 tariffs, is how we're going to get this through. As you look at the business, is there anything that jumps out at you, and I'm thinking more maybe in the closures or Beauty segment, where whether it's to get ahead of price increases, whether it's we've got some certainty on tariffs, where customers may be trying to sneakily build some inventory, or is that not something that- You mentioned tariffs. you mentioned tariffs I've got a different question about it. i've got a different question about it Just we kind of have this 150 days, I think now we're focused on Section 301 tariffs, is how we're going to get this through. just we kind of have this 150 days i think now we're focused on section 301 tariffs is how we're going to get this through As you look at the business, is there anything that jumps out at you, and I'm thinking more maybe in the closures or Beauty segment, where whether it's to get ahead of price increases, whether it's we've got some certainty on tariffs, where customers may be trying to sneakily build some inventory, or is that not something that- as you look at the business is there anything that jumps out at you and i'm thinking more maybe in the closures or beauty segment where whether it's to get ahead of price increases whether it's we've got some certainty on tariffs where customers may be trying to sneakily build some inventory or is that not something that-

Speaker 2: We haven't really seen that, we were watching for that, are people going to pre-buy? We haven't really seen that, we were watching for that, are people going to pre-buy? we haven't really seen that we were watching for that are people going to pre-buy to get ahead of expected changes in tariffs. We were very acute in looking for this even last year, but also now. We don't really see that. We may have a couple of anecdotal cases where we've heard that, okay, maybe that could be a driver, but we have not seen this as anything sort of notable across the board. Not really any big impact there. to get ahead of expected changes in tariffs. to get ahead of expected changes in tariffs We were very acute in looking for this even last year, but also now. we were very acute in looking for this even last year but also now We don't really see that. we don't really see that We may have a couple of anecdotal cases where we've heard that, okay, maybe that could be a driver, but we have not seen this as anything sort of notable across the board. we may have a couple of anecdotal cases where we've heard that okay maybe that could be a driver but we have not seen this as anything sort of notable across the board Not really any big impact there. not really any big impact there

Speaker 1: Okay. I want to get to the exciting stuff, because Aptar is one of the few stocks in the group when you look over a long period of time that is a compounder, and it's been driven by the investment in pharma. You mentioned pipeline in your prepared remarks. Nasal delivery is a big part of that. Injectables is a big part of that. I think other folks, this isn't a healthcare conference, but to the extent that we're seeing more and more biologics and biosimilars that are out there in the marketplace for a variety of different treatments. When you look at the pipeline, and I'm looking at things that are out there in the public domain that we know about, Envy Mist, Cardemyst, neffy. It's easier from a patient compliance standpoint. Okay. okay I want to get to the exciting stuff, because Aptar is one of the few stocks in the group when you look over a long period of time that is a compounder, and it's been driven by the investment in pharma. i want to get to the exciting stuff because aptar is one of the few stocks in the group when you look over a long period of time that is a compounder and it's been driven by the investment in pharma You mentioned pipeline in your prepared remarks. you mentioned pipeline in your prepared remarks Nasal delivery is a big part of that. nasal delivery is a big part of that Injectables is a big part of that. injectables is a big part of that I think other folks, this isn't a healthcare conference, but to the extent that we're seeing more and more biologics and biosimilars that are out there in the marketplace for a variety of different treatments. i think other folks this isn't a healthcare conference but to the extent that we're seeing more and more biologics and biosimilars that are out there in the marketplace for a variety of different treatments When you look at the pipeline, and I'm looking at things that are out there in the public domain that we know about, Envy Mist, Cardemyst, neffy. when you look at the pipeline and i'm looking at things that are out there in the public domain that we know about envy mist cardemyst neffy It's easier from a patient compliance standpoint. it's easier from a patient compliance standpoint Getting back to that 7%-11% growth, which seems to be sort of the linchpin for the stock. Are those the types of drugs and introductions, number one, are there other ones that I'm missing? Number two, you kind of gave us that flowchart, which almost looked like it was, I want to say 17-20 years when you kind of go from. Getting back to that 7%-11% growth, which seems to be sort of the linchpin for the stock. getting back to that 7%-11% growth which seems to be sort of the linchpin for the stock Are those the types of drugs and introductions, number one, are there other ones that I'm missing? are those the types of drugs and introductions number one are there other ones that i'm missing Number two, you kind of gave us that flowchart, which almost looked like it was, I want to say 17-20 years when you kind of go from. number two you kind of gave us that flowchart which almost looked like it was i want to say 17-20 years when you kind of go from

Speaker 2: I think it was 30 years. I think it was 30 years. i think it was 30 years

Speaker 1: 30 years. Okay. As you look out at maybe over the next 12-18 months, we feel good that we can get back into that range, assuming a normalized backdrop, whatever that looks like. 30 years. 30 years Okay. okay As you look out at maybe over the next 12-18 months, we feel good that we can get back into that range, assuming a normalized backdrop, whatever that looks like. as you look out at maybe over the next 12-18 months we feel good that we can get back into that range assuming a normalized backdrop whatever that looks like

Speaker 2: Yeah. Let me just maybe start with, the range is a long-term range. Yeah. yeah Let me just maybe start with, the range is a long-term range. let me just maybe start with the range is a long-term range

Speaker 1: Yeah. Yeah. yeah

Speaker 2: It's not a 12-month range. It's not a 12-month range. it's not a 12-month range

Speaker 1: Yep. Yep. yep

Speaker 2: Again, emergency medicine, you kind of get these one-time effects, but when you look out over a longer term period, we absolutely expect to continue that compounding that you just described. Honestly, Gabe, I think a lot of the examples you gave are just exactly the reasons why we're very excited. The examples you gave of neffy, Embymist, and so on, these are cases where an existing molecule was taken, where the molecule was delivered in a particular way. In the case of neffy, it's epinephrine, which we all know, you jam it into your thigh as an injection. Now being nasally delivered. You've got a big part of the population that may not necessarily, my children, to start with. They don't like needles. So they would be perfect case studies for why neffy, for example, is a very exciting development. Again, emergency medicine, you kind of get these one-time effects, but when you look out over a longer term period, we absolutely expect to continue that compounding that you just described. again emergency medicine you kind of get these one-time effects but when you look out over a longer term period we absolutely expect to continue that compounding that you just described Honestly, Gabe, I think a lot of the examples you gave are just exactly the reasons why we're very excited. honestly gabe i think a lot of the examples you gave are just exactly the reasons why we're very excited The examples you gave of neffy, Embymist, and so on, these are cases where an existing molecule was taken, where the molecule was delivered in a particular way. the examples you gave of neffy embymist and so on these are cases where an existing molecule was taken where the molecule was delivered in a particular way In the case of neffy, it's epinephrine, which we all know, you jam it into your thigh as an injection. in the case of neffy it's epinephrine which we all know you jam it into your thigh as an injection Now being nasally delivered. now being nasally delivered You've got a big part of the population that may not necessarily, my children, to start with. you've got a big part of the population that may not necessarily my children to start with They don't like needles. they don't like needles So they would be perfect case studies for why neffy, for example, is a very exciting development. so they would be perfect case studies for why neffy for example is a very exciting development Now, it takes time in pharma. It's not just you don't launch the product tomorrow, all of a sudden it grows like gangbusters. These things do take years to grow, insurance companies, adoption, and so on. This is a very exciting development for us. Some of the other items that you mentioned as well. Again, existing molecule, new method of delivery, nasal administration. It's a lot more efficacious. It's a lot more convenient. When you think about the broader population demographics, also other broader pressures across healthcare. Aging population, also, the cost of hospitalization is very, very high. It's one of the biggest problems that we have. Now, it takes time in pharma. now it takes time in pharma It's not just you don't launch the product tomorrow, all of a sudden it grows like gangbusters. it's not just you don't launch the product tomorrow all of a sudden it grows like gangbusters These things do take years to grow, insurance companies, adoption, and so on. these things do take years to grow insurance companies adoption and so on This is a very exciting development for us. this is a very exciting development for us Some of the other items that you mentioned as well. some of the other items that you mentioned as well Again, existing molecule, new method of delivery, nasal administration. again existing molecule new method of delivery nasal administration It's a lot more efficacious. it's a lot more efficacious It's a lot more convenient. it's a lot more convenient When you think about the broader population demographics, also other broader pressures across healthcare. when you think about the broader population demographics also other broader pressures across healthcare Aging population, also, the cost of hospitalization is very, very high. aging population also the cost of hospitalization is very very high It's one of the biggest problems that we have. it's one of the biggest problems that we have This move towards self-administration, patient can treat themselves at home without a nurse or some kind of a supervision because you can administer through the nose versus having somebody help you with an injection, or God forbid you do it wrong, because you're so careful about your fears around needles and so on. This is a lot more convenient and efficacious. These are broader trends that actually work in our favor. We're also seeing more and more research around the nose-to-brain overall, and depression is a key area. Also, other diseases such as Parkinson's, Alzheimer's, all of these are areas being researched for nasal administration of the drugs. Very, very exciting for us. As I kind of shared that slice of the market that we play so well in, this is all just fantastic. This is exactly our sweet spot. This move towards self-administration, patient can treat themselves at home without a nurse or some kind of a supervision because you can administer through the nose versus having somebody help you with an injection, or God forbid you do it wrong, because you're so careful about your fears around needles and so on. this move towards self-administration patient can treat themselves at home without a nurse or some kind of a supervision because you can administer through the nose versus having somebody help you with an injection or god forbid you do it wrong because you're so careful about your fears around needles and so on This is a lot more convenient and efficacious. this is a lot more convenient and efficacious These are broader trends that actually work in our favor. these are broader trends that actually work in our favor We're also seeing more and more research around the nose-to-brain overall, and depression is a key area. we're also seeing more and more research around the nose-to-brain overall and depression is a key area Also, other diseases such as Parkinson's, Alzheimer's, all of these are areas being researched for nasal administration of the drugs. also other diseases such as parkinson's alzheimer's all of these are areas being researched for nasal administration of the drugs Very, very exciting for us. very very exciting for us As I kind of shared that slice of the market that we play so well in, this is all just fantastic. as i kind of shared that slice of the market that we play so well in this is all just fantastic This is exactly our sweet spot. this is exactly our sweet spot

Speaker 1: At risk of. At risk of. at risk of

Speaker 2: The highest in our portfolio. The highest in our portfolio. the highest in our portfolio

Speaker 1: Right. Right. right

Speaker 2: As that grows, very good for our margins as well. As that grows, very good for our margins as well. as that grows very good for our margins as well

Speaker 1: I think you guys put out a press release on May 20th, and unfortunately, Gael's not here. He's CEO-elect. I think you guys put out a press release on May 20th, and unfortunately, Gael's not here. i think you guys put out a press release on may 20th and unfortunately gael's not here He's CEO-elect. he's ceo-elect

Speaker 2: Yeah Yeah yeah

Speaker 1: head of pharma. Maybe he can speak a little bit more eloquently about this. I think it was kind of like patent applications. head of pharma. head of pharma Maybe he can speak a little bit more eloquently about this. maybe he can speak a little bit more eloquently about this I think it was kind of like patent applications. i think it was kind of like patent applications

Speaker 2: Yep Yep yep

Speaker 1: for pre-clinical data supporting intranasal delivery for, or pulmonary of GLP-1. for pre-clinical data supporting intranasal delivery for, or pulmonary of GLP-1. for pre-clinical data supporting intranasal delivery for or pulmonary of glp-1

Speaker 2: Yep. semaglutide? Yeah. Yep. semaglutide? yep semaglutide Yeah. yeah

Speaker 1: Which a lot of people are really excited about. Again, we're not at the healthcare conference. Just from the packaging guys' perspective, presumably patient compliance may go up. Maybe adoption could go up. There's a lot of, I guess, net benefits of that. Is this something where the molecule is already proven? Can you walk us through maybe some of the technical aspects? Is it a truncated timeline that we should think about? Which a lot of people are really excited about. which a lot of people are really excited about Again, we're not at the healthcare conference. again we're not at the healthcare conference Just from the packaging guys' perspective, presumably patient compliance may go up. just from the packaging guys' perspective presumably patient compliance may go up Maybe adoption could go up. maybe adoption could go up There's a lot of, I guess, net benefits of that. there's a lot of i guess net benefits of that Is this something where the molecule is already proven? is this something where the molecule is already proven Can you walk us through maybe some of the technical aspects? can you walk us through maybe some of the technical aspects Is it a truncated timeline that we should think about? is it a truncated timeline that we should think about

Speaker 2: This is not going to deliver revenue tomorrow. This is not going to deliver revenue tomorrow. this is not going to deliver revenue tomorrow

Speaker 1: Right Right right

Speaker 2: It really speaks to our level of innovation. It comes back to the whole nasal administration, right? This is GLP-1 being delivered not only as an injectable, not only as an oral, but potentially, through the nose. Aptar, just given our knowhow in this space, we just filed patents on this to give us points a couple of weeks ago. We're very excited about this. Clearly, we're not a pharmaceutical company, so we're not going to start developing the drug to sell. There's so many different potential routes to market for this. Licensing, so many other opportunities that may come along with it. Of course, you got the device sale, as well. This really shows our innovation in this area, really leading in this area. Also, this is something that could unleash a lot of potential future revenue for us. It really speaks to our level of innovation. it really speaks to our level of innovation It comes back to the whole nasal administration, right? it comes back to the whole nasal administration right This is GLP-1 being delivered not only as an injectable, not only as an oral, but potentially, through the nose. this is glp-1 being delivered not only as an injectable not only as an oral but potentially through the nose Aptar, just given our knowhow in this space, we just filed patents on this to give us points a couple of weeks ago. aptar just given our knowhow in this space we just filed patents on this to give us points a couple of weeks ago We're very excited about this. we're very excited about this Clearly, we're not a pharmaceutical company, so we're not going to start developing the drug to sell. clearly we're not a pharmaceutical company so we're not going to start developing the drug to sell There's so many different potential routes to market for this. there's so many different potential routes to market for this Licensing, so many other opportunities that may come along with it. licensing so many other opportunities that may come along with it Of course, you got the device sale, as well. of course you got the device sale as well This really shows our innovation in this area, really leading in this area. this really shows our innovation in this area really leading in this area Also, this is something that could unleash a lot of potential future revenue for us. also this is something that could unleash a lot of potential future revenue for us The other aspect, it goes back to the nasal administration. It's also interesting, back to the innovation thing, as we talk about GLP-1, maybe getting a little bit less questions now, but a quarter or two ago it was all about what's going to happen to your injectables because now GLP-1s are going to be through oral. We always said, there will be a market, right? We don't see this as being cannibalistic to the injectables portfolio. We do think that it expands the market. There will be coexistence of oral solutions to injectable solutions. Now we're looking at potentially delivering GLP-1 through the nasal tract. Very exciting. This is exactly the area where Aptar is frankly leading the pack. The other aspect, it goes back to the nasal administration. the other aspect it goes back to the nasal administration It's also interesting, back to the innovation thing, as we talk about GLP-1, maybe getting a little bit less questions now, but a quarter or two ago it was all about what's going to happen to your injectables because now GLP-1s are going to be through oral. it's also interesting back to the innovation thing as we talk about glp-1 maybe getting a little bit less questions now but a quarter or two ago it was all about what's going to happen to your injectables because now glp-1s are going to be through oral We always said, there will be a market, right? we always said there will be a market right We don't see this as being cannibalistic to the injectables portfolio. we don't see this as being cannibalistic to the injectables portfolio We do think that it expands the market. we do think that it expands the market There will be coexistence of oral solutions to injectable solutions. there will be coexistence of oral solutions to injectable solutions Now we're looking at potentially delivering GLP-1 through the nasal tract. now we're looking at potentially delivering glp-1 through the nasal tract Very exciting. very exciting This is exactly the area where Aptar is frankly leading the pack. this is exactly the area where aptar is frankly leading the pack

Speaker 1: I guess if we were in the business of tooting horns, you guys are the only company out there that could do all three. You have active packaging for oral- I guess if we were in the business of tooting horns, you guys are the only company out there that could do all three. i guess if we were in the business of tooting horns you guys are the only company out there that could do all three You have active packaging for oral- you have active packaging for oral-

Speaker 2: Yeah Yeah yeah

Speaker 1: solid dose, right? You have injectables, and you also have the- solid dose, right? solid dose right You have injectables, and you also have the- you have injectables and you also have the-

Speaker 2: 100%. 100%. 100%

Speaker 1: Yeah. Yeah. yeah

Speaker 2: 100%. Very exciting. The other thing is, I would say, just as we're talking about injectables, GLP-1s are of course very important, but that's not the only driver of our injectables growth. Biologics are a huge driver of our injectables growth. When you looked at the slide on the pipeline just a few slides ago, we saw Biologics being a big part of that. In fact, I think it was the second biggest area in our pipeline, so we're very excited about that. While we will participate in GLP-1 growth, it's not the only driver of growth in our injectables business, Annex 1 also being a big driver. These are all areas, to your earlier question, Gabe, that we are quite excited about and we think supportive of that long term, 7%-11%. 100%. 100% Very exciting. very exciting The other thing is, I would say, just as we're talking about injectables, GLP-1s are of course very important, but that's not the only driver of our injectables growth. the other thing is i would say just as we're talking about injectables glp-1s are of course very important but that's not the only driver of our injectables growth Biologics are a huge driver of our injectables growth. biologics are a huge driver of our injectables growth When you looked at the slide on the pipeline just a few slides ago, we saw Biologics being a big part of that. when you looked at the slide on the pipeline just a few slides ago we saw biologics being a big part of that In fact, I think it was the second biggest area in our pipeline, so we're very excited about that. in fact i think it was the second biggest area in our pipeline so we're very excited about that While we will participate in GLP-1 growth, it's not the only driver of growth in our injectables business, Annex 1 also being a big driver. while we will participate in glp-1 growth it's not the only driver of growth in our injectables business annex 1 also being a big driver These are all areas, to your earlier question, Gabe, that we are quite excited about and we think supportive of that long term, 7%-11%. these are all areas to your earlier question gabe that we are quite excited about and we think supportive of that long term 7%-11%

Speaker 1: I want to ask a general corporate question and then maybe two on the other businesses. Stephan told us that he's going to be retiring in March. He was an outside CEO. Now, like I said, Gael, who heads up pharma, is an internal candidate. Just a fresh set of eyes. You've worked with him now, obviously. I think, at least maybe for me, it seemed like he was kind of being groomed. I think it's going to be a good internal promotion. Are there any things that you see that, during the Touya era- that might be in focus operationally, commercially, or anything like that you'd call out for us? I want to ask a general corporate question and then maybe two on the other businesses. i want to ask a general corporate question and then maybe two on the other businesses Stephan told us that he's going to be retiring in March. stephan told us that he's going to be retiring in march He was an outside CEO. he was an outside ceo Now, like I said, Gael, who heads up pharma, is an internal candidate. now like i said gael who heads up pharma is an internal candidate Just a fresh set of eyes. just a fresh set of eyes You've worked with him now, obviously. you've worked with him now obviously I think, at least maybe for me, it seemed like he was kind of being groomed. i think at least maybe for me it seemed like he was kind of being groomed I think it's going to be a good internal promotion. i think it's going to be a good internal promotion Are there any things that you see that, during the Touya era- that might be in focus operationally, commercially, or anything like that you'd call out for us? are there any things that you see that during the touya era- that might be in focus operationally commercially or anything like that you'd call out for us

Speaker 2: Yeah. I mean, yes. First, we wish Stephan the best in his retirement. He chose to retire. He is very excited about his future plans with his wife. They fly planes. They go hiking. I mean, Frankly, the rest of us are just jealous about all the fun things he plans to do when he retires, but we are very happy for him. He certainly deserves it. Now we welcome Gael, and as you say, Gael is a very strong leader, very well-known and very well-respected within the organization. I think one of the unique things about Gael as well is not only is he an internal candidate, but he also knows all the segments very well. I think that is important. Yeah. yeah I mean, yes. i mean yes First, we wish Stephan the best in his retirement. first we wish stephan the best in his retirement He chose to retire. he chose to retire He is very excited about his future plans with his wife. he is very excited about his future plans with his wife They fly planes. they fly planes They go hiking. they go hiking I mean, Frankly, the rest of us are just jealous about all the fun things he plans to do when he retires, but we are very happy for him. i mean frankly the rest of us are just jealous about all the fun things he plans to do when he retires but we are very happy for him He certainly deserves it. he certainly deserves it Now we welcome Gael, and as you say, Gael is a very strong leader, very well-known and very well-respected within the organization. now we welcome gael and as you say gael is a very strong leader very well-known and very well-respected within the organization I think one of the unique things about Gael as well is not only is he an internal candidate, but he also knows all the segments very well. i think one of the unique things about gael as well is not only is he an internal candidate but he also knows all the segments very well I think that is important. i think that is important Obviously has run the pharma business for the last 10 years and has been quite successful in running the pharma business for the last 10 years. I think, Gael, I have worked with him very closely for the last 18 months since I joined the organization. Of course, even more closely now since the board made its succession decision, as he is now going through the transition with Stephan. You will find in Gael likes to study things. Obviously has run the pharma business for the last 10 years and has been quite successful in running the pharma business for the last 10 years. obviously has run the pharma business for the last 10 years and has been quite successful in running the pharma business for the last 10 years I think, Gael, I have worked with him very closely for the last 18 months since I joined the organization. i think gael i have worked with him very closely for the last 18 months since i joined the organization Of course, even more closely now since the board made its succession decision, as he is now going through the transition with Stephan. of course even more closely now since the board made its succession decision as he is now going through the transition with stephan You will find in Gael likes to study things. you will find in gael likes to study things He is very much data-driven, very thoughtful, wants the facts, which as a CFO, goodness gracious, thank you. He is very much data-driven, very thoughtful, wants the facts, which as a CFO, goodness gracious, thank you. he is very much data-driven very thoughtful wants the facts which as a cfo goodness gracious thank you

Speaker 1: Yeah Yeah yeah

Speaker 2: Let us talk facts. You will also see in Gael a very strong drive for innovation. I think you are going to see that from him as well. I think you are going to see, being somebody who has been with Aptar for a long time and loves the organization, a very strong focus on culture, values. I think that is going to be important. Also performance, right? Gael holds his team accountable. He is not looking for excuses. He is looking for, "Show me the data, show me where you are growing, and let us dig into the details." He is very detail-oriented, which again, I think for a CFO, I could not be more grateful for that, because I think those are all the attributes that will bode well as we go forward. Excited to have him on board, and looking forward to what potentially comes next. Let us talk facts. let us talk facts You will also see in Gael a very strong drive for innovation. you will also see in gael a very strong drive for innovation I think you are going to see that from him as well. i think you are going to see that from him as well I think you are going to see, being somebody who has been with Aptar for a long time and loves the organization, a very strong focus on culture, values. i think you are going to see being somebody who has been with aptar for a long time and loves the organization a very strong focus on culture values I think that is going to be important. i think that is going to be important Also performance, right? also performance right Gael holds his team accountable. gael holds his team accountable He is not looking for excuses. he is not looking for excuses He is looking for, "Show me the data, show me where you are growing, and let us dig into the details." He is very detail-oriented, which again, I think for a CFO, I could not be more grateful for that, because I think those are all the attributes that will bode well as we go forward. he is looking for "show me the data show me where you are growing and let us dig into the details." he is very detail-oriented which again i think for a cfo i could not be more grateful for that because i think those are all the attributes that will bode well as we go forward Excited to have him on board, and looking forward to what potentially comes next. excited to have him on board and looking forward to what potentially comes next

Speaker 1: Data-driven. Data-driven. data-driven

Speaker 2: Data-driven. Data-driven. data-driven

Speaker 1: I like it, yep. Beauty, I think Q1 growth was in the 3% range. Margins, a tick below. You talked about having to re-qualify a supplier on some particular applications. I like it, yep. i like it yep Beauty, I think Q1 growth was in the 3% range. beauty i think q1 growth was in the 3% range Margins, a tick below. margins a tick below You talked about having to re-qualify a supplier on some particular applications. you talked about having to re-qualify a supplier on some particular applications Target is 15%-17%. You're pretty close. Do we need that? Target is 15%-17%. target is 15%-17% You're pretty close. you're pretty close Do we need that? do we need that

Speaker 2: We're oh-so-close. That's the frustrating part, Gabe. Let's just call a spade a spade. We're oh-so-close. we're oh-so-close That's the frustrating part, Gabe. that's the frustrating part gabe Let's just call a spade a spade. let's just call a spade a spade

Speaker 1: Well. Well. well

Speaker 2: We're really close, yeah. We're really close, yeah. we're really close yeah

Speaker 1: You're close. I wanted to ask about, you mentioned de-stock, high-end fragrance versus kind of massage. Do we need that incremental volume bump to kind of get in that range, or are there things that we can do internally to get there? You're close. you're close I wanted to ask about, you mentioned de-stock, high-end fragrance versus kind of massage. i wanted to ask about you mentioned de-stock high-end fragrance versus kind of massage Do we need that incremental volume bump to kind of get in that range, or are there things that we can do internally to get there? do we need that incremental volume bump to kind of get in that range or are there things that we can do internally to get there

Speaker 2: We've done a lot, which is my comment about the frustrating part is we've done so much, and we've come so close. Then, of course, we saw some of these operational challenges which set us back a little bit. That's my comment around just being frustrated. It really is within distance. We've done a lot, which is my comment about the frustrating part is we've done so much, and we've come so close. we've done a lot which is my comment about the frustrating part is we've done so much and we've come so close Then, of course, we saw some of these operational challenges which set us back a little bit. then of course we saw some of these operational challenges which set us back a little bit That's my comment around just being frustrated. that's my comment around just being frustrated It really is within distance. it really is within distance

Speaker 1: Yep. Yep. yep

Speaker 2: If you look at the work we've done in beauty for the last couple of years, we've shut down 10 plants. We've right-sized the labor force to the tune of 10%, 11%, 12%. The organization has not sat back, has done a lot of work around cost management in beauty, and continues to do a lot of work around cost management in beauty. We did go through this de-stocking cycle, which obviously was a headwind to the top line, and in manufacturing, volumes matter. If you look at the work we've done in beauty for the last couple of years, we've shut down 10 plants. if you look at the work we've done in beauty for the last couple of years we've shut down 10 plants We've right-sized the labor force to the tune of 10%, 11%, 12%. we've right-sized the labor force to the tune of 10% 11% 12% The organization has not sat back, has done a lot of work around cost management in beauty, and continues to do a lot of work around cost management in beauty. the organization has not sat back has done a lot of work around cost management in beauty and continues to do a lot of work around cost management in beauty We did go through this de-stocking cycle, which obviously was a headwind to the top line, and in manufacturing, volumes matter. we did go through this de-stocking cycle which obviously was a headwind to the top line and in manufacturing volumes matter

Speaker 1: Right. Right. right

Speaker 2: Volumes matter for your absorption and all of those different things, right? We are excited that we're now seeing volume growth in beauty after that long period of de-stocking. We saw growth in Q4. We saw growth in Q1. The margins, they don't just rebound in your first quarter of growth, we do need to see this consistently, but we're absolutely optimistic that we will start to see improvement in the beauty margins, and we need to get through these short-term operational hiccups that you mentioned, like the fire and the new supplier and having to incur additional costs, that should all be behind us, we think, by the end of the first half. Hopefully, we're expecting to see sequential improvement in the margins as we go forward. Volumes matter for your absorption and all of those different things, right? volumes matter for your absorption and all of those different things right We are excited that we're now seeing volume growth in beauty after that long period of de-stocking. we are excited that we're now seeing volume growth in beauty after that long period of de-stocking We saw growth in Q4. we saw growth in q4 We saw growth in Q1. we saw growth in q1 The margins, they don't just rebound in your first quarter of growth, we do need to see this consistently, but we're absolutely optimistic that we will start to see improvement in the beauty margins, and we need to get through these short-term operational hiccups that you mentioned, like the fire and the new supplier and having to incur additional costs, that should all be behind us, we think, by the end of the first half. the margins they don't just rebound in your first quarter of growth we do need to see this consistently but we're absolutely optimistic that we will start to see improvement in the beauty margins and we need to get through these short-term operational hiccups that you mentioned like the fire and the new supplier and having to incur additional costs that should all be behind us we think by the end of the first half Hopefully, we're expecting to see sequential improvement in the margins as we go forward. hopefully we're expecting to see sequential improvement in the margins as we go forward

Speaker 1: Last question for you, similar line of questioning for closures, just kind of the path forward for profitability. Starting the year, I think, food and beverage, at least, customers were optimistic they could promote. We're hitting another wave of inflation. How should we think about that? Last question for you, similar line of questioning for closures, just kind of the path forward for profitability. last question for you similar line of questioning for closures just kind of the path forward for profitability Starting the year, I think, food and beverage, at least, customers were optimistic they could promote. starting the year i think food and beverage at least customers were optimistic they could promote We're hitting another wave of inflation. we're hitting another wave of inflation How should we think about that? how should we think about that

Speaker 2: Yeah. Closures, again, newer segment, as I mentioned earlier. We've been pretty good from a growth perspective in closures. Our products, again, the reported growth tends to, depending on rest and pass-through- Yeah. yeah Closures, again, newer segment, as I mentioned earlier. closures again newer segment as i mentioned earlier We've been pretty good from a growth perspective in closures. we've been pretty good from a growth perspective in closures Our products, again, the reported growth tends to, depending on rest and pass-through- our products again the reported growth tends to depending on rest and pass-through- and so on. If you kind of strip that out and just look at what's happened to the products revenue in closures, we've done pretty well. We've typically grown better than market, as I mentioned earlier, through innovation, converting categories, and so on. We actually expect that to continue. We're expecting 2026 to be a good growth year for closures. There again, as we kind of look at the last 12 to 18 months, we've been at the lower end of our target margin range. We have not been in the last couple of quarters because of some operational challenges, some maintenance issues that we've had to deal with. The closures team continues to work pretty diligently through those issues. There again, we did say that we expect that to continue into the first half. and so on. and so on If you kind of strip that out and just look at what's happened to the products revenue in closures, we've done pretty well. if you kind of strip that out and just look at what's happened to the products revenue in closures we've done pretty well We've typically grown better than market, as I mentioned earlier, through innovation, converting categories, and so on. we've typically grown better than market as i mentioned earlier through innovation converting categories and so on We actually expect that to continue. we actually expect that to continue We're expecting 2026 to be a good growth year for closures. we're expecting 2026 to be a good growth year for closures There again, as we kind of look at the last 12 to 18 months, we've been at the lower end of our target margin range. there again as we kind of look at the last 12 to 18 months we've been at the lower end of our target margin range We have not been in the last couple of quarters because of some operational challenges, some maintenance issues that we've had to deal with. we have not been in the last couple of quarters because of some operational challenges some maintenance issues that we've had to deal with The closures team continues to work pretty diligently through those issues. the closures team continues to work pretty diligently through those issues There again, we did say that we expect that to continue into the first half. there again we did say that we expect that to continue into the first half Again, we expect sequential improvement in the closures margins going forward. Again, we expect sequential improvement in the closures margins going forward. again we expect sequential improvement in the closures margins going forward

Speaker 1: Perfect. I think that wraps it up. Unless there's any questions from the audience Perfect. perfect I think that wraps it up. i think that wraps it up Unless there's any questions from the audience unless there's any questions from the audience

Speaker 2: You asked all the questions. You asked all the questions. you asked all the questions

Speaker 1: We tend to do that. Thank you very much. We tend to do that. we tend to do that Thank you very much. thank you very much

Speaker 2: Thank you, Gabe. Thanks, everyone. Thank you, Gabe. thank you gabe Thanks, everyone. thanks everyone