02.04.21
Driven by sizable gains in RFID , Avery Dennison announced preliminary, unaudited results for its fourth quarter and year ended Jan. 2, 2021.
Net sales in 4Q 2020 were $1.99 billion, up 12.3%, but fiscal year sales were down 1.4% to $6.97 billion. Reported operating margin in the 4Q 2020 increased 350 basis points to 13.7%. Adjusted EBITDA margin increased 180 basis points to 16.3%, while adjusted operating margin increased 160 basis points to 13.5%. Free cash flow was $548 million in 2020.
On the RFID side, Retail Branding and Information Solutions’ reported sales increased 19%. Enterprise-wide sales of RFID products were up approximately 55% ex. currency with the benefit of the Smartrac acquisition, and up approximately 21% organically, driven by new programs and recovery in the value segment of the apparel market.
“We delivered another year of strong earnings growth in 2020,” said Mitch Butier, chairman, president and CEO. “We were able to protect, even expand, margins, despite pandemic-related market declines particularly in the second quarter,” added Butier. “Underlying label demand in LGM, our largest business, remained strong throughout the downturn, while volume trends improved sequentially in RBIS and IHM in the second half. RFID grew significantly due to continued strong organic growth and the acquisition of Smartrac.”
The company closed two strategic acquisitions during the year, ACPO in the fourth quarter for $88 million and Smartrac in the first quarter for $255 million.
Net sales in 4Q 2020 were $1.99 billion, up 12.3%, but fiscal year sales were down 1.4% to $6.97 billion. Reported operating margin in the 4Q 2020 increased 350 basis points to 13.7%. Adjusted EBITDA margin increased 180 basis points to 16.3%, while adjusted operating margin increased 160 basis points to 13.5%. Free cash flow was $548 million in 2020.
On the RFID side, Retail Branding and Information Solutions’ reported sales increased 19%. Enterprise-wide sales of RFID products were up approximately 55% ex. currency with the benefit of the Smartrac acquisition, and up approximately 21% organically, driven by new programs and recovery in the value segment of the apparel market.
“We delivered another year of strong earnings growth in 2020,” said Mitch Butier, chairman, president and CEO. “We were able to protect, even expand, margins, despite pandemic-related market declines particularly in the second quarter,” added Butier. “Underlying label demand in LGM, our largest business, remained strong throughout the downturn, while volume trends improved sequentially in RBIS and IHM in the second half. RFID grew significantly due to continued strong organic growth and the acquisition of Smartrac.”
The company closed two strategic acquisitions during the year, ACPO in the fourth quarter for $88 million and Smartrac in the first quarter for $255 million.
