07.29.22
Avery Dennison announced preliminary, unaudited results for its second quarter ended July 2, 2022.The company reported that 2Q22 net sales increased 11.7% to $2.3 billion, with organic sales growth (non-GAAP) of 11.3%.
“We once again delivered strong financial results amidst a dynamic environment, with earnings above expectations,” said Mitch Butier, Avery Dennison chairman and CEO. “LGM and RBIS delivered impressive earnings growth and momentum in Intelligent Labels is further accelerating.
“Our strong performance comes at a challenging time as supply chains remain tight, inflationary pressures are significant and COVID-19 continues. Despite these challenges and a significant currency translation headwind, we have raised our guidance for the year,” said Butier. “The strategic foundations we have laid enable us to generate superior value creation through a balance of GDP-plus growth and top-quartile returns over the long-term.
Label and Graphic Materials reported that sales increased 8% to $1.5 billion. Sales were up 14% ex. currency and 15% on an organic basis. Reported operating margin decreased 140 basis points to 15.2%. Adjusted EBITDA margin (non-GAAP) increased 50 basis points to 17.1%, as the benefits from the net impact of pricing, freight and raw material costs, productivity and mix more than offset higher employee-related costs and lower volume.
Retail Branding and Information Solutions reported sales increased 24% to $658 million. Sales were up 27% ex. currency and 5% on an organic basis. Growth was strong in the high value product categories, including Intelligent Labels and external embellishments.
Reported operating margin increased 490 basis points to 12.9%. Adjusted EBITDA margin increased 220 basis points to 19% as the combined benefit from higher organic volume and acquisitions was partially offset by growth investments and higher employee-related costs.
Industrial and Healthcare Materials reported sales increased 1% to $198 million. Sales were up 5% ex. currency and 7% on an organic basis, reflecting a mid-single digit increase in industrial categories and a high-teens increase in healthcare categories. Reported operating margin decreased 120 basis points to 10.3%. Adjusted EBITDA margin increased 190 basis points sequentially to 13.7%.
“We once again delivered strong financial results amidst a dynamic environment, with earnings above expectations,” said Mitch Butier, Avery Dennison chairman and CEO. “LGM and RBIS delivered impressive earnings growth and momentum in Intelligent Labels is further accelerating.
“Our strong performance comes at a challenging time as supply chains remain tight, inflationary pressures are significant and COVID-19 continues. Despite these challenges and a significant currency translation headwind, we have raised our guidance for the year,” said Butier. “The strategic foundations we have laid enable us to generate superior value creation through a balance of GDP-plus growth and top-quartile returns over the long-term.
Label and Graphic Materials reported that sales increased 8% to $1.5 billion. Sales were up 14% ex. currency and 15% on an organic basis. Reported operating margin decreased 140 basis points to 15.2%. Adjusted EBITDA margin (non-GAAP) increased 50 basis points to 17.1%, as the benefits from the net impact of pricing, freight and raw material costs, productivity and mix more than offset higher employee-related costs and lower volume.
Retail Branding and Information Solutions reported sales increased 24% to $658 million. Sales were up 27% ex. currency and 5% on an organic basis. Growth was strong in the high value product categories, including Intelligent Labels and external embellishments.
Reported operating margin increased 490 basis points to 12.9%. Adjusted EBITDA margin increased 220 basis points to 19% as the combined benefit from higher organic volume and acquisitions was partially offset by growth investments and higher employee-related costs.
Industrial and Healthcare Materials reported sales increased 1% to $198 million. Sales were up 5% ex. currency and 7% on an organic basis, reflecting a mid-single digit increase in industrial categories and a high-teens increase in healthcare categories. Reported operating margin decreased 120 basis points to 10.3%. Adjusted EBITDA margin increased 190 basis points sequentially to 13.7%.