Q2 2024 Avery Dennison Corp Earnings Call Transcript
Key Points
- Avery Dennison Corp (AVY) delivered a strong quarter with EPS of $2.42, exceeding expectations.
- The company raised its full-year guidance, now expecting earnings of $9.30 to $9.50 per share.
- Materials Group demonstrated resilience with significant volume and margin expansion.
- Solutions Group saw strong top-line growth and expanded margins, particularly in the retail apparel channel.
- Intelligent Labels platform experienced mid to high teens growth, with strong performance in general retail, logistics, and apparel.
- Retail volumes remained soft relative to long-term trends due to high inflation, with no expected improvement in the second half of the year.
- Label volumes in North America were slightly below expectations.
- Fourth-quarter growth is expected to be lower than previously anticipated due to the timing of customer rollouts.
- Materials Group margins are expected to moderate in the third quarter due to raw material cost inflation, particularly in paper prices.
- SG&A expenses increased by $55 million year-over-year, driven by higher incentive compensation accruals and the return of temporary costs.
Ladies and gentlemen, thank you for standing by. (Operator Instructions)
Welcome to Avery Dennison's earnings conference call for the second quarter ended on June 29, 2024. This call is being recorded and will be available for replay after 4:00 PM Eastern time today until midnight Eastern Time, July 30, 2024. To access the replay, please dial 1 (800) 770-2030 or 1 (609) 800-9909 for international callers. The conference ID number is 5855706
I would now like to turn the call over to John Eble, Avery Dennison's Vice President of Finance and Investor Relations. Please go ahead, sir.
Thank you, Angela. Please note that throughout today's discussion will be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined qualified and reconciled from GAAP on schedules A4 to A9 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
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