“We had another solid quarter, in line with our expectations, with strong top-line growth and adjusted EPS up 15%,” said Mitch Butier, president and CEO. “Label and Graphic Materials delivered strong sales growth, while its margin declined in the face of continued inflationary pressure; we expect a meaningful recovery in the fourth quarter, as recent pricing actions take full effect. Retail Branding and Information Solutions continues to deliver, with another quarter of strong sales growth in both the base business and RFID, along with significant margin expansion. Results for Industrial and Healthcare Materials were disappointing, as organic sales were down modestly, driven by a decline in the China automotive business.
“We remain confident in the adjusted earnings guidance we communicated last quarter, despite incremental currency headwinds and continued inflationary pressure,” added Butier. “Our ability to consistently achieve our strategic and financial goals continues to demonstrate the resilience of our business and the talent of our team.”
Label and Graphic Materials reported sales increased 5.0%; on an organic basis, sales grew by 6.4%. Retail Branding and Information Solutions reported sales increased by 6.6%; on an organic basis, sales grew 8.2%, driven by strength in both the base business and radio frequency identification (RFID) solutions.
Industrial and Healthcare Materials reported sales decreased 0.8%; on an organic basis, sales declined 0.4% driven by a decline in the China automotive business, which offset strong mid-single digit growth for the rest of the industrial categories.