Demand for fragrance and cosmetics packaging boosts Aptar results

Dispensing systems provider Aptar has reported a big rise in both sales and operating profit during the second quarter, on the back of increased demand for fragrance and cosmetics packaging.

The company reported that sales were up by 19 percent to $522.9m, from $440.5m during the same period last year, despite currency effects negatively impacting the result by 3 per cent as the US Dollar declined against a number of leading foreign currencies.

Net income increased by 65 percent, from $28.47m to $42.76m, which the company said reflected both the increase in sales and the cost cutting measures it implemented last year.

Sales for the first six months of the year increased by 18 percent, from $872.3m to $1.03bn, while net income rose by 55.7 percent to $85.85m.

Beauty sales drive the results

During the second quarter, sales for the company's biggest division, beauty and home, increased from $213.94m to $263.72m, representing growth of 23 percent.

Aptar is also present in the market for dispensing systems for pharmaceuticals and the food and beverage industries, but it singled out personal care as a driving force behind the gains.

“Demand was particularly strong from the fragrance, cosmetic, and personal care markets and appears to be a blend of increased consumer consumption and the absence of inventory de-stocking that occurred last year,” said company CEO and president Peter Pfeiffer.

Cost cutting puts company in stronger position

He also described the performance in both the food and beverage and pharmaceutical industries during the quarter as ‘quite good’.

“Our decision to reduce certain costs during the economic downturn last year without sacrificing critical research or capacity was the right move,” Pfeiffer said. “We put ourselves in a position to take advantage of rising demand as our customers' businesses regained their momentum."

Looking ahead to the full year, the company said it believes it will be likely to gain further ground from the benefits of cost savings, together with continued gains in sales momentum as well as the likelihood of benefits from future currency translations.