AptarGroup, Inc.

Ladies and gentlemen, thank you for standing by, and welcome to APTA's 2025 Second Quarter Results Conference Call. At this time, all participants are in listen-only mode. Later, we will conduct a question and answer session. Introducing today's conference call is Ms. Mary Scafidis, Senior Vice President, Investor Relations and Communications. Please go ahead, Mary.

Thank you. Hello, everyone, and thanks for being with us today. Our speakers for the call are Stefan Tanda, our president and CEO, and Vanessa Canu, our executive vice president and CFO. A press release and accompanying slide deck have been posted on our website under the investor relations page. During this call, we will be discussing certain non-GAAP financial measures. These measures are reconciled to the most directly comparable GAAP financial measure, and the reconciliations are set forth in the press release. please refer to the press release disseminated yesterday for reconciliations of non-GAAP measures to the most comparable GAAP measures discussed during this earnings call. As always, we will also post a replay of this call on our website. I would now like to turn the call over to Stefan. Stefan, over to you.

Thank you, Mary, and good morning, everyone. We appreciate you joining us on the call today. I will begin my remarks by highlighting our second quarter results Later in the call, Vanessa Canu, our CFO, will provide additional details on key drivers for the quarter. Starting on slide three, we delivered a strong second quarter, exceeding the high end of our guidance range, delivering an adjusted earnings per share of $1.66, an increase of 18% over the prior year quarter. Each of our segments contributed to our growth in the quarter. core sales increased driven by our pharma enclosure segments. We saw solid demand for our pharma segments proprietary drug delivery systems used for emergency medicines, asthma, COPD, and ophthalmic treatments. Additionally, strong sales of elastomeric components for injectables and active materials, as well as royalties, helped drive our strong results. Demand for dispensing closures for sauces, salad dressings, and functional drinks also contributed positively to our quarterly results. Three of our divisions in pharma showed robust core sales growth this quarter. Prescription delivered a core sales increase of 8%, injectables 9%, and active material science solutions grew core sales by 11%. The exception was our consumer healthcare division. which continue to be impacted by softer demand for dispensing technologies in nasal saline and nasal deconditions. Consumer healthcare's two largest regions are Europe and North America. While sales in North America grew nicely, Europe has not yet recovered from the excess inventory due to a weaker cold and flu season. The visibility into future European demand for cold and cough medication has not improved meaningfully. A few weeks ago, we announced the acquisition of Mod3 Pharma's clinical trial manufacturing capabilities. This expands AptoPharma's services into highly specific CDMO fields, supporting Phase I and Phase II GMP fill-and-finish services for orally inhaled needle drug products, an area we view as a significant unmet market need. We believe this added capability will help accelerate adoption of our proprietary drug delivery devices and further strengthen our position as a preferred partner in early-stage development. As a result of this acquisition, we now operate an FDA-inspected, state-of-the-art facility in New Jersey featuring CGMP clean rooms, high-potency API suites, biologic capabilities, and advanced small-scale fill finish technologies fully aligned with our drug delivery portfolio. The acquisition is also expected to enable future expansion into dermal, ophthalmic, injectable, and packaging solutions powered by our active material science division. Our closure segment had a great quarter. Bringing closures under one roof appears to be really paying off. Core sales have been spurred by a solid innovation pipeline, enabling the segment to grow faster than the industry, while also improving utilization rates and managing costs to expand margins. We're energized by the future of the segment and the opportunities ahead. Now let me touch on beauty. Cost management is a well-developed muscle in the segment, and the beauty industry remains resilient and poised for sustained growth, driven by regional expansion, product innovation, and evolving consumer preferences. While Prestige Beauty has faced headwinds from trade uncertainties, which are slowing demand recovery despite a few encouraging signs, our growth in prestige fragrance is helping to offset some of that softness. Additionally, continued momentum in personal care supported by a broad and globally relevant portfolio reinforces the resilience of the segments. To further enhance the competitiveness of our industrial footprint, earlier this week, we executed a previously agreed-upon call option to increase the ownership in our BTY joint venture to 80%. While the JV assets are based in China and serve the broader Asia region, BTY brings highly specialized custom decoration capabilities that will also be leveraged at our flagship beauty facility in Oyonnax, France. Moving to slide four, I'm proud to highlight recent corporate awards and recognitions. At the end of the quarter, APTA was named one of Time Magazine's World's Most Sustainable Companies for the second year in a row. For this recognition, over 5,000 of the world's largest and most influential companies are assessed based on revenue, market capitalization, and public prominence. Only the top 10% were recognized with an award. following the end of the quarter after it was again named to CDP Suppliers Engagement Assessment A-list for the 2024 disclosure cycle. This CDP assessment evaluates companies on their performance on governance, targets, scope three emissions, and value chain engagement. Turning to innovation, I want to now highlight just a few recent technologies and product launches as shown in slide five. A recent innovation, the lateral control system with a shorter nozzle and easy one-push button actuation for precise dosing, is the dispensing solution of choice for Halion's nasal Theraflu brand congestion relief in the U.S. This is Theraflu's first nasal decongestion product. I also wanted to cover a topic that spans both beauty and pharma markets, the combined dermocosmetics and medical aesthetics market, have been growing double digits over the past five years. According to IQVIA, these markets are expected to keep growing two to three points above the beauty market's average growth rate. We are addressing this fast-rising market with a range of solutions tailored to the needs of derma cosmetic brands. Our recently launched Pharma Beauty Derma Series features a curated selection of high-performance packaging and dispensing solutions adapted perfectly to the specifications of the dermal cosmetic market. Before I turn the call over to Vanessa to share further details of the quarter, I want to highlight that we continue to ramp up share purchases. For the first six months of the year, we repurchased approximately 1 million shares for about $150 million and returned about $210 million to shareholders through both dividends and share repurchases. Now I would like to turn the call over to Vanessa.