The following is a summary of the Avery Dennison Corporation (AVY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Avery Dennison's Q1 adjusted earnings per share stood at $2.29, up 6% sequentially and 35% year-over-year, mainly driven by rising volumes and productivity.
Sales saw an increase of 4% ex-currency, and a 3% organic growth.
Adjusted EBITDA margin expanded 270 basis points year-over-year, hitting 16.3%.
The company reported a strong free cash flow of $58 million and returned $81 million to shareholders through share repurchases and dividends in Q1.
Business Progress:
Label volume showed robust growth, especially in Europe and North America, with emerging markets also demonstrating strength, particularly India, the ASEAN region, and China.
Intelligent Labels saw a mid-to-high teens growth for Q1, backed by success in non-apparel categories.
Avery Dennison aims to achieve ~20% growth in the Intelligent Labels platform in 2024.
The company sees significant growth prospects in expanding Intelligent Label applications beyond the apparel sector to larger sectors like food and logistics.
The company continues to diversify and build resilience in its supply chain following previous labor strikes in Finland, with the aim of mitigating any future interruptions.
Avery Dennison maintains its full-year 2024 guidance for strong earnings growth, drawn by the normalization of label volumes, apparel volumes, significant growth in intelligent labels, and ongoing productivity actions.
More details: Avery Dennison IR
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