Avery Dennison Corp. recently announced preliminary, unaudited results for its third quarter ended September 28, 2024. The company reported net sales of $2.2 billion, up 4%, Organic sales change (non-GAAP) was up 4%. Reported earnings per share (EPS) was $2.25, up 32% compared to the same quarter last year. Third-quarter 2024 adjusted EPS (non-GAAP) was $2.33, up 9%. 

“We delivered a strong third quarter with strong earnings growth, above expectations, driven by higher volume and productivity gains,” said Deon Stander, president and CEO. “Both our Materials and Solutions Groups delivered strong bottom-line growth. 

“In Intelligent Labels, we are delivering another year of strong growth and continue to see significant opportunity ahead. Adoption of our solutions in new categories is increasing, particularly in Food, as the value of our technology in helping address key industry challenges continues to resonate with customers. 

“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.

The company’s Materials Group reported sales increased 3% to $1.5 billion. Sales were up 4% ex. currency and on an organic basis. Label Materials sales were up low-to-mid single digits on an organic basis. Volume/mix was up mid-single digits, which was partially offset by deflation-related price reductions. Sales in the Graphics and Reflectives were up mid-single digits organically. Sales in Performance Tapes and Medical were up low single digits organically. Reported operating margin was 14.5%. Adjusted EBITDA margin (non-GAAP) of 17.0% comparable to prior year, as the benefits from higher volume/mix and productivity were partially offset by higher employee-related costs and the net impact of pricing and raw material input costs.

The company’s Solutions Group reported sales increased 7% to $686 million. Sales were up 7% ex. currency and 6% on an organic basis. Sales in high-value categories were up low single digits ex. currency. Strong growth in apparel and general retail in Intelligent labels, partially offset by logistics in Intelligent Labels and other high-value solutions. Sales were up mid-teens ex. currency in base solutions. Reported operating margin was 9.7%. Adjusted EBITDA margin was 17.9%, up 150 basis points, driven by benefits from productivity and higher volume, partially offset by higher employee-related costs and investments. 

Through the first three quarters of the year, the company realized approximately $50 million in pre-tax savings from restructuring, net of transition costs, and incurred approximately $26 million in pre-tax restructuring charges.

In its supplemental presentation materials, Third 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 $8.75 to $8.95 to $8.75 to $8.90. Excluding an estimated $0.60 per share impact of restructuring charges and other items, the company raised its guidance range for 2024 for adjusted earnings per share from $9.30 to $9.50 to $9.35 to $9.50.

For more details about Avery Dennison, visit www.averydennison.com.