“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.”

Results by Segment

The Materials Group reported a sales increase of 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. The 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, and Performance Tapes and Medical were down low single-digits organically.

Reported operating margin for the Materials Group 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.

In the 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 for the Solutions Group was up 70 basis points sequentially; the company expects margin to continue to improve in the second half of 2024.

Other

In the first half of the year, the company realized approximately $36 million in pre-tax savings from restructuring, net of transition costs, and incurred approximately $13 million in pre-tax restructuring charges.

In its supplemental presentation materials, “Second Quarter 2024 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2024 financial results. Based on the factors listed and other assumptions, the company has revised its guidance range for 2024 reported earnings per share from $8.60 to $9.10 to $8.75 to $8.95.

Excluding an estimated $0.55 per share impact of restructuring charges and other items, the company raised its guidance range for 2024 for adjusted earnings per share from $9.00 to $9.50 to $9.30 to $9.50.

Additional information about Avery Dennison is available at www.averydennison.com.