Avery Dennison Corporation has released preliminary, unaudited results for the second quarter that ended 29 June 2024.
The results showed year-over-year (YoY) growth in earnings per share (EPS) and adjusted EPS (non-generally accepted accounting practices/GAAP), alongside a modest increase in net sales.
The company also revised its full-year 2024 earnings guidance upwards.
Avery Dennison reported EPS of $2.18 for the second quarter, a 76% increase compared to the same period in 2023.
Adjusted EPS (non-GAAP) also increased by 26% to $2.42.
Net sales for the quarter reached $2.2bn, reflecting a 7% YoY rise.
Organic sales growth, excluding currency effects, was 7%.
As mentioned prior, the company also revised its full-year 2024 earnings guidance.
Reported EPS is now expected to be between $8.75 and $8.95, compared to the previously announced range of $8.60 to $9.10.
Adjusted EPS guidance was also raised to $9.30 to $9.50, from the prior range of $9.00 to $9.50.
“We delivered a strong second quarter, with significant earnings growth, driven by higher volume and productivity gains,” said Deon Stander, Avery Dennison president and CEO.
“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.”
Both Avery Dennison's Materials Group and Solutions Group contributed to the results.
Materials Group: Sales increased 5% to $1.5bn, with Label Materials experiencing mid-to-high single-digit organic growth.
Adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin rose to 17.9%.
Solutions Group: Sales for the Solutions Group grew 12% to $689m.
The company expects further margin improvement in the second half (H2) of 2024.
Avery Dennison also returned $177m to shareholders through dividends and share repurchases in H1 2024.
The company's net debt to adjusted EBITDA ratio remains at 2.2x.
Cost-saving measures are anticipated to generate approximately $36m in pretax savings for the full year.
Avery Dennison is also making a big push for sustainable packaging in 2024.
In March, the company announced the transition of its pharmaceutical liners to recycled polyethylene terephthalate.
Additionally, its CleanFlake technology, which helps remove labels for superior plastic recycling, has been recognised by the Association of Plastic Recyclers.
