Avery Dennison Corp. recently announced preliminary, unaudited results for its second quarter ended July 3, 2021. Net sales for the quarter increased 37.5% compared to the 2020 second quarter, to $2.1 billion; organic sales grew by 28.1%.
“We delivered another strong quarter, ahead of expectations, raised our outlook for the second half, and announced an agreement to acquire Vestcom that will build upon and expand RBIS’ strengths,” said Mitch Butier, president and CEO. “Revenue was up 28 percent organically compared to prior year and up 11 percent compared to 2019, as RBIS and IHM rebounded significantly from prior year lows and strength in LGM continued.
“Our strong performance comes at a time when supply chains remain tight, inflation persists and the global health crisis continues. The current environment 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.”
In the Label and Graphic Materials segment, reported sales increased 25% to $1.4 billion. Compared to the prior year, sales were up 17% ex. currency (up 11% vs. 2019) and 16% on an organic basis (up 11% vs. 2019). Label and Packaging Materials sales were up approximately 12% 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 49% organically in the combined Graphics and Reflective Solutions businesses.
Retail Branding and Information Solutions saw reported sales increase 80%, to $529 million, in the 2021 second quarter. Compared to the prior year, sales were up 73% ex. currency (up 25% vs. 2019) and 72% on an organic basis (up 14% vs. 2019), reflecting strong growth in both the high-value categories and the base business. Sales in Intelligent Labels were up approximately 65% organically.
In the Industrial and Healthcare Materials segment, reported sales increased 49% to $197 million. Compared to the prior year, sales were up 39% ex. currency (up 11% vs. 2019) and 33% on an organic basis (up 6% vs. 2019), reflecting an approximately 60% increase in industrial categories and a high-single-digit decline in healthcare categories.
More information about Avery Dennison Corp. is available at www.averydennison.com.