Avery Dennison Corp. recently announced preliminary, unaudited results for its first quarter ended April 3, 2021. The company's net sales increased 19.1% to nearly $2.1 billion; sales growth ex. currency was 10.9%, while organic sales growth was 8.8%.
"We are off to a strong start to the year, with earnings growth well above expectations, driven by higher volume and productivity gains across the portfolio," said Mitch Butier, president and CEO. "All three of our operating segments delivered strong sales growth and significant margin expansion. Our strong performance comes at a time when the global health crisis is resurging in many parts of the world and supply chains are tightening. The current environment further reinforces our determination to remain vigilant in ensuring the health and well-being of our employees, delivering for our customers, supporting our communities, and creating value for our shareholders.
"We have raised our full-year outlook for adjusted earnings per share, reflecting the strong performance in the first quarter, and a higher organic growth assumption for the balance of the year. 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.
"Once again, I want to thank our entire team for their tireless efforts to keep one another safe while delivering for our customers during this challenging period, bringing a whole new level of agility and dedication to address the unique challenges at hand."
Reported sales in the Label and Graphic Materials segment increased 17.3% to $1.38 billion. Sales were up 8.4% ex. currency and 7.6% on an organic basis. Label and Packaging Materials sales were up approximately 7% from prior year on an organic basis, with strong growth in both the high-value product categories and the base business. Sales increased by approximately 9% organically in the combined Graphics and Reflective Solutions businesses. On an organic basis, sales were up low-single digits in North America and Western Europe, and up mid-teens in emerging markets.
Retail Branding and Information Solutions saw reported sales increase 20.1% to $483 million. Sales were up 15.0% ex. currency and 9.3% on an organic basis, reflecting strong growth in both the high-value categories and the base business. Intelligent Labels were up approximately 40% ex. currency with the benefit of the Smartrac acquisition, and up approximately 20% organically.
Reported sales in the Industrial and Healthcare Materials segment increased 29.8% to $192 million. Sales were up 18.8% ex. currency and 16.3% on an organic basis, reflecting an approximately 20% increase in industrial categories and a low-single-digit decline in healthcare categories.
To learn more about the company's results in the first quarter, visit www.averydennison.com.