04.28.22
Avery Dennison announced preliminary, unaudited results for its first quarter ended April 2, 2022.
First quarter 2022 net sales increased 14.5% to $2.3 billion, with organic sales growth (non-GAAP) of 12.7%.
“We once again delivered strong financial results amidst a challenging environment, with earnings ahead of expectations,” said Mitch Butier, Avery Dennison chairman and CEO.
“Our strong performance comes at a difficult time as COVID-19 continues, supply chains remain tight and inflationary pressures persist. Despite these challenges, we have raised our outlook and we continue to expect strong top- and bottom-line growth for the year,” said Butier. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.”
First Quarter 2022 Results by Segment
The Label and Graphic Materials segment’s reported sales increased 8% to $1.5 billion. Sales were up 12% ex. currency and 12% on an organic basis. The company reported that the operating margin decreased 240 basis points to 14.0%. Adjusted EBITDA margin (non-GAAP) decreased 280 basis points to 15.6%, largely driven by the net impact of pricing, freight, and raw material costs. Adjusted EBITDA margin increased 110 basis points sequentially.
The Retail Branding and Information Solutions segment, including RFID, reported that sales increased 41% to $679 million. Sales were up 43% ex. currency and 20% on an organic basis, reflecting strong growth in both the high value product categories and the base business. Intelligent Labels was up over 20% organically. Reported operating margin increased 90 basis points to 13.3%. Adjusted EBITDA margin increased 240 basis points to 19.1%, as the benefits from higher organic volume and acquisitions were partially offset by growth investments and higher employee-related costs.
First quarter 2022 net sales increased 14.5% to $2.3 billion, with organic sales growth (non-GAAP) of 12.7%.
“We once again delivered strong financial results amidst a challenging environment, with earnings ahead of expectations,” said Mitch Butier, Avery Dennison chairman and CEO.
“Our strong performance comes at a difficult time as COVID-19 continues, supply chains remain tight and inflationary pressures persist. Despite these challenges, we have raised our outlook and we continue to expect strong top- and bottom-line growth for the year,” said Butier. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.”
First Quarter 2022 Results by Segment
The Label and Graphic Materials segment’s reported sales increased 8% to $1.5 billion. Sales were up 12% ex. currency and 12% on an organic basis. The company reported that the operating margin decreased 240 basis points to 14.0%. Adjusted EBITDA margin (non-GAAP) decreased 280 basis points to 15.6%, largely driven by the net impact of pricing, freight, and raw material costs. Adjusted EBITDA margin increased 110 basis points sequentially.
The Retail Branding and Information Solutions segment, including RFID, reported that sales increased 41% to $679 million. Sales were up 43% ex. currency and 20% on an organic basis, reflecting strong growth in both the high value product categories and the base business. Intelligent Labels was up over 20% organically. Reported operating margin increased 90 basis points to 13.3%. Adjusted EBITDA margin increased 240 basis points to 19.1%, as the benefits from higher organic volume and acquisitions were partially offset by growth investments and higher employee-related costs.
