US' Avery Dennison Q1 sales flat, organic growth at 2.3%
American manufacturer of adhesive materials Avery Dennison Corporation has reported total net sales of $2.1 billion in the first quarter (Q1) of 2025 ended March 29, reflecting a marginal decline of 0.1 per cent year-over-year (YoY). On a constant currency and organic basis, sales increased by 2.3 per cent.
The company reported earnings per share (EPS) of $2.09, with adjusted EPS at $2.30, up 0.4 per cent and approximately 4 per cent excluding currency impacts in Q1 2025.
Avery Dennison has reported net sales of $2.1 billion in Q1 2025, down 0.1 per cent YoY but up 2.3 per cent organically. Adjusted EPS rose 0.4 per cent to $2.30. Materials and Solutions segments delivered strong margins despite cost pressures. The company expects Q2 reported EPS of $2.25â€'$2.45. CEO Deon Stander highlighted the team's agility and resilience amid ongoing market uncertainty.
Segment-wise, the Materials Group posted sales of $1.5 billion, down 1.1 per cent YoY but up 1.2 per cent organically. The Solutions Group recorded $668.2 million in sales, a 2.0 per cent YoY increase and a 4.9 per cent rise on an organic and constant currency basis.
Materials segment's operating margin stood at 15.3 per cent, while the adjusted operating margin was 15.6 per cent, down 50 basis points (bps). The adjusted EBITDA margin was 17.7 per cent, down 60 bps, as productivity gains and higher volumes were offset by pricing and raw material costs. Despite these pressures, margins remained strong, in line with expectations, and improved by 70 bps sequentially.
Solutions segment reported an operating margin of 8.7 per cent and an adjusted operating margin of 10.2 per cent, up 90 bps. Adjusted EBITDA margin improved to 17.2 per cent, up 110 bps YoY, driven by productivity gains and higher volume, partially offset by growth investments.
In its supplemental presentation 'First Quarter 2025 Financial Review and Analysis,' Avery outlined key factors influencing its outlook and expects reported EPS for the second quarter of 2025 to be between $2.25 and $2.45. Excluding an estimated impact of approximately $0.05 per share from restructuring charges and other items, adjusted EPS is projected to range from $2.30 to $2.50.
'We delivered a strong first quarter, in-line with expectations, both our Materials and Solutions Groups achieved strong results in a dynamic environment. We have a proven track record of delivering strong results across cycles, due to the strength of our overall franchise,' said Deon Stander, president and chief executive officer (CEO) . 'While uncertainty is elevated, we are prepared for multiple scenarios as we progress through the year. Once again, I want to thank our agile, engaged and talented team for their focus on excellence and commitment to addressing challenges at hand.'
Fibre2Fashion News Desk (SG)
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