“We delivered a strong second quarter, with significant earnings growth, driven by higher volume and productivity gains,” said Deon Stander, president and CEO. “Both our Materials and Solutions Groups delivered strong top- and bottom-line growth.
“In Intelligent Labels, we are targeting to deliver another year of significant growth, as apparel volumes normalize and new categories adopt our solutions that help address key industry challenges.
“We have raised our full-year outlook for adjusted earnings per share. We continue to remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation for all our stakeholders,” added Stander.
“Once again, I want to thank our entire team for their continued resilience, focus on excellence and commitment to addressing the unique challenges at hand.”
Second Quarter 2024 Results by Segment
Materials Group
*Reported sales increased 5% to $1.5 billion. Sales were up 6% ex. currency and on an organic basis.
-Label Materials sales were up mid-to-high single-digits on an organic basis.
**Volume/mix was up low double-digits, which was partially offset by deflation-related price reductions.
-Graphics and Reflectives were up low single-digits organically.
-Performance Tapes and Medical were down low single-digits organically.
*Reported operating margin was 14.4%. Adjusted EBITDA margin (non-GAAP) was 17.9%, up 220 basis points driven by higher volume/mix and benefits from productivity, partially offset by higher employee-related costs.
Solutions Group
*Reported sales increased 12% to $689 million. Sales were up 14% ex. currency and 11% on an organic basis.
-Sales in high-value categories were up low double-digits ex. currency.
-Sales were up mid-to-high teens ex. currency in base solutions.
*Reported operating margin was 9.3%. Adjusted EBITDA margin was 16.8%, up 100 basis points, driven by higher volume and benefits from productivity, partially offset by higher employee-related costs and investments.
-Margin was up 70 basis points sequentially; the company expects margin to continue to improve in the second half of 2024.
details at: https://www.investors.averydennison.com/news-releases/news-release-details/avery-dennison-announces-second-quarter-2024-results