Highlights:

• FY24 Reported EPS of $8.73

  • FY24 Adjusted EPS of $9.43, up 19%

• FY24 Net sales of $8.8 billion, up 4.7%

  • Sales change ex. currency up 5.1%

  • Organic sales change up 4.5%

• 4Q24 Reported EPS of $2.16

  • 4Q24 Adjusted EPS (non-GAAP) of $2.38, up 10%

• 4Q24 Net sales of $2.2 billion, up 3.6%

  • Sales change ex. currency (non-GAAP) up 3.5%

  • Organic sales change (non-GAAP) up 3.3%

• FY25 Reported EPS guidance of $9.55 to $9.95

  • Adjusted EPS guidance of $9.80 to $10.20

MENTOR, Ohio, January 30, 2025 – Avery Dennison Corporation (NYSE:AVY) today announced preliminary, unaudited results for its fourth quarter and full year ended December 28, 2024. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year.

“We delivered strong results in 2024, achieving nineteen percent earnings growth,” said Deon Stander, president and CEO. “Both our Materials and Solutions Groups delivered strong top-and bottom-line results, with our industries recovering from downstream inventory destocking last year, once again demonstrating the strength of our overall franchise. 

“We remain well-positioned to continue our long track record of strong earnings growth in 2025, including accelerating growth in our high-value categories, which now account for almost half of our portfolio,” added Stander. “We are confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation in a range of geopolitical and macro scenarios. 

“Once again, I want to thank our entire team for their continued resilience, focus on excellence and commitment to addressing the challenges at hand.”

Fourth Quarter 2024 Results by Segment

Materials Group

• Reported sales increased 4% to $1.5 billion. Sales were up 4% ex. currency and on an organic basis.

  • High-value categories up high single digits; base up low single digits organically

  • Label Materials up low single digits organically

  • Graphics and Reflectives up low single digits; Performance Tapes and Medical sales comparable to the prior year

• Reported operating margin was 14.7%.

  • Adjusted Operating margin (non-GAAP) of 14.8%, up 80 basis points

  • Adjusted EBITDA margin (non-GAAP) was 17.0%, up 80 basis points, driven by benefits from higher volume/mix and productivity, partially offset by the net impact of pricing and raw material input costs.

Solutions Group

• Reported sales increased 3% to $714 million. Sales were up 3% ex. currency and on an organic basis.

  • Sales in high-value categories were down mid-single digits ex. currency, as strong growth in IL apparel and general retail was more than offset by IL logistics and other high-value solutions. 

    • In Vestcom, signed a new agreement with a leading U.S. health solutions company for pricing productivity solutions.

  • Sales were up mid teens ex. currency in base solutions.

• Reported operating margin was 9.1%. 

  • Adjusted Operating margin of 11.4%, down 20 basis points

  • Adjusted EBITDA margin was 17.8%, down 40 basis points compared to prior year as benefits from productivity and higher volume were more than offset by higher employee-related costs and growth investments.

Other

Balance Sheet and Capital Deployment

In November, the company issued €500 million of 3.75% senior notes due 2034. The company intends to use the net proceeds from the issuance to repay in full its €500 million 1.250% senior notes due on March 3, 2025 and for general corporate purposes.

During the fourth quarter, the company returned $210 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 0.7 million shares at an aggregate cost of $140 million.

During 2024, the company returned $525 million in cash to shareholders through a combination of dividends and share repurchases. The company repurchased 1.2 million shares at an aggregate cost of $248 million.  Net of dilution from long-term incentive awards, the company’s share count was down 0.9 million compared to the same time last year.

The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy. The company’s balance sheet remains strong and its net debt to adjusted EBITDA ratio (non-GAAP) was 2.0x at the end of the fourth quarter.

Income Taxes

The company’s reported effective tax rate was 27.9% in the fourth quarter and 26.1% for the full year. The adjusted tax rate (non-GAAP) was 25.7% in the fourth quarter and 25.9% for the full year.

Cost Reduction Actions

During 2024, the company realized approximately $63 million in pre-tax savings from restructuring, net of transition costs, and incurred approximately $42 million in pre-tax restructuring charges.

Guidance

In its supplemental presentation materials, “Fourth Quarter and Full Year 2024 Financial Review and Analysis,” the company provides a list of factors that it believes will contribute to its 2025 financial results. Based on the factors listed and other assumptions, the company expects 2025 reported earnings per share of $9.55 to $9.95.

Excluding an estimated $0.25 per share impact of restructuring charges and other items, the company expects 2025 adjusted earnings per share of $9.80 to $10.20.

For more details on the company’s results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, “Fourth Quarter and Full Year 2024 Financial Review and Analysis,” posted on the company’s website at www.investors.averydennison.com, and furnished to the SEC on Form 8-K.

Throughout this release and the supplemental presentation materials, amounts on a per share basis reflect fully diluted shares outstanding.

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