Q3 2024 Avery Dennison Corp Earnings Call Transcript
Key Points
- Avery Dennison Corp (AVY) delivered strong earnings per share of $2.33, exceeding expectations and prompting an increase in full-year guidance.
- Both the Materials Group and Solutions Group showed strong bottom-line growth, with Intelligent Labels continuing to drive significant top-line growth.
- The company announced a strategic collaboration with Kroger to enhance customer experience through RFID technology, marking a significant step in the food segment.
- Avery Dennison Corp (AVY) maintained a strong balance sheet, with a net debt to adjusted EBITDA ratio of 2.1, and returned $315 million to shareholders through share repurchases and dividends.
- The company is well-positioned to capitalize on long-term growth opportunities in diverse markets, with a focus on Intelligent Labels and high-value solutions.
- Macro retail volumes remain soft, particularly in developed regions, due to the cumulative effects of inflation, impacting consumer demand.
- Volume growth in Europe was slightly below expectations, affected by normal volume seasonality and softer retail volumes.
- The Intelligent Labels segment experienced uneven growth, with logistics volumes softer than expected due to prior year customer inventory builds and a customer transition.
- The Vestcom business faced challenges due to drugstore channel softness and impacts from a hurricane, affecting volume in the third quarter.
- The broader macro environment remains uncertain, with muted sentiment in Europe and cautious outlooks for retail volumes.
Ladies and gentlemen, thank you for standing by. (Operator Instructions)
Welcome to Avery Dennison's Earnings Conference Call for the Third Quarter ended on September 28, 2024. This call is being recorded and will be available for replay after 4:00 p.m. Eastern Time, today and until midnight Eastern Time, October 2, 2024.
Track us to replay, please dial 18007702030 or 1609800-9909 for international callers. The conference ID number is 5855706.
I'd now like to turn the call over to John Eble, Avery Dennison, Vice President of Finance and Investor Relations. Please go ahead, sir.
Thank you, Jeremy. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified and reconciled from GAAP on schedules A-4 to A-9 of the financial statements accompanying today's earnings release.
We remind you that we'll make certain predictive statements that reflect our current views and estimates about our
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