04.30.24
Avery Dennison announced preliminary, unaudited results for its first quarter ended March 30, 2024. First quarter net sales were $2.2 billion, up 4%. Organic sales change (non-GAAP) were up 3%.
“We are off to a strong start to the year. In the first quarter we delivered significant earnings growth, driven by higher volume and productivity gains,” said Deon Stander, president and CEO.
“Materials Group delivered significant volume growth and margin expansion, as downstream inventory destocking subsided and volumes continued to normalize. Solutions Group delivered strong top-line growth, driven by high-value categories, despite apparel imports continuing to be below demand.
“In Intelligent Labels, we are targeting to deliver another year of significant growth in 2024, as the apparel industry normalizes and we accelerate the adoption of our solutions that help address key industry challenges, further advancing our leadership position at the intersection of the physical and digital,” added Stander.
The Materials Group reported sales increased 2% to $1.5 billion. Sales were up 2% ex. currency and on an organic basis. Label Materials sales were up mid-single digits on an organic basis.
The Solutions Group reported sales increased 8% to $655 million. Sales were up 10% ex. currency and 6% on an organic basis. Sales in high-value categories were up low double-digits on an organic basis. Sales were up low-single digits organically in base solutions.
Apparel imports remain below demand; continue to anticipate the apparel industry to normalize in mid-2024. Reported operating margin was 8.6%. Adjusted EBITDA margin was 16.1%, up 40 basis points, driven by productivity initiatives and higher volume, par-tially offset by higher employee-related costs and investments.
“We are off to a strong start to the year. In the first quarter we delivered significant earnings growth, driven by higher volume and productivity gains,” said Deon Stander, president and CEO.
“Materials Group delivered significant volume growth and margin expansion, as downstream inventory destocking subsided and volumes continued to normalize. Solutions Group delivered strong top-line growth, driven by high-value categories, despite apparel imports continuing to be below demand.
“In Intelligent Labels, we are targeting to deliver another year of significant growth in 2024, as the apparel industry normalizes and we accelerate the adoption of our solutions that help address key industry challenges, further advancing our leadership position at the intersection of the physical and digital,” added Stander.
The Materials Group reported sales increased 2% to $1.5 billion. Sales were up 2% ex. currency and on an organic basis. Label Materials sales were up mid-single digits on an organic basis.
The Solutions Group reported sales increased 8% to $655 million. Sales were up 10% ex. currency and 6% on an organic basis. Sales in high-value categories were up low double-digits on an organic basis. Sales were up low-single digits organically in base solutions.
Apparel imports remain below demand; continue to anticipate the apparel industry to normalize in mid-2024. Reported operating margin was 8.6%. Adjusted EBITDA margin was 16.1%, up 40 basis points, driven by productivity initiatives and higher volume, par-tially offset by higher employee-related costs and investments.