Aptargroup, Inc. (NYSE: ATR)

AptarGroup, Inc., often referred to as Aptar, is a prominent player in the design and manufacturing of drug and consumer product dosing, dispensing, and protection technologies. The company operates across various end markets, including pharmaceutical, beauty, food, beverage, personal care, and home care. With a presence in 20 countries and approximately 13,800 dedicated employees, Aptar caters to a diverse range of customers, many of whom are leading brands globally.

Aptar's primary offerings include dispensing pumps, closures, aerosol valves, elastomeric primary packaging components, active material science solutions, and digital health solutions. These products are designed to offer innovative benefits to customers, such as enhanced shelf appeal, convenience, cleanliness, and accurate dosage for various products.

The company's business is segmented into three market-focused divisions: Aptar Pharma, Aptar Beauty, and Aptar Closures. Aptar Pharma, the largest segment, accounts for 44% of net sales and 47% of total assets in 2023, serving the pharmaceutical and healthcare markets. This segment provides products such as nasal drug delivery spray pumps, metered dose inhaler valves, and injectable primary packaging components.

Aptar Beauty, the second-largest segment, accounts for 36% of net sales and 32% of total assets in 2023, catering to the beauty, personal care, and home care markets. This segment offers products such as pumps, airless systems, and valves for fragrance, facial skincare, color cosmetics, and other applications.

Aptar Closures, the smallest segment, accounts for 20% of net sales and 17% of total assets in 2023, serving the food, beverage, personal care, and home care markets. This segment provides dispensing closures and other products.

Aptar's competitive advantages include its focus on innovation, technical expertise, and global presence. The company boasts a strong record of developing new and innovative products and leverages its technical proficiency in areas like injection molding, robotics, and clean-room facilities to produce high-quality products efficiently.

Aptar's customers include many of the world's leading brands, and the company maintains a diverse customer base with no single customer or group of affiliated customers accounting for more than 5% of net sales. Its international presence is substantial, with operations spanning across Asia, Europe, Latin America, and North America.

In terms of sustainability, Aptar is dedicated to minimizing its environmental impact and promoting sustainable practices throughout its operations. The company has made significant investments in research and development, focusing on the creation of new and innovative products that are more sustainable and eco-friendly.

Aptar's manufacturing processes primarily involve plastic injection molding, automated assembly, elastomer and silicone formulation and finishing, and to a limited extent, metal anodization and vacuum metallization of plastic components. Historically, these processes have had a minimal environmental impact, and the company believes it adheres to current environmental standards in all material respects.

To further reduce its environmental footprint, Aptar has established science-based targets, including a Scope 1 and Scope 2 emissions reduction goal consistent with the requirements to keep global warming below 2° Celsius by 2030, and a Scope 3 reduction goal aligned with the requirements to keep global warming at 2° Celsius by 2030. The company has also pledged to increase annual sourcing of renewable electricity to 100% by 2030.

Aptar has garnered several recognitions for its sustainability efforts, including being named one of Barron's 100 Most Sustainable Companies for 2022 and one of America's Climate Leaders by USA Today. The company has also been recognized by CDP for its climate change and water management practices.