Avery Dennison has reported its second quarter financial results for 2022, highlighting that its net sales has increased by 11.7 per cent to US$2.3 billion (A$3.31 billion).
“We once again delivered strong financial results amidst a dynamic environment, with earnings above expectations,” Avery Dennison chairman and CEO Mitch Butier said.
“LGM [Label and Graphic Materials] and RBIS [Retail Branding and Information Solutions] delivered impressive earnings growth and momentum in Intelligent Labels is further accelerating.
“Our strong performance comes at a challenging time as supply chains remain tight, inflationary pressures are significant and COVID-19 continues. Despite these challenges and a significant currency translation headwind, we have raised our guidance for the year.
“The strategic foundations we have laid enable us to generate superior value creation through a balance of GDP-plus growth and top-quartile returns over the long-term.
“Once again, I want to thank our entire team for their tireless efforts to keep one another safe while continuing to deliver for our customers during this challenging period. The team continues to raise their game each quarter to address the unique challenges at hand.”
Within its Label and Graphic Materials business, it reported that its sales increased by eight per cent to $1.5 billion (A$2.16 billion).
“Label and Packaging Materials sales were up high teens on an organic basis with strong growth in both high value product categories and the base business. Sales decreased by mid-single digits organically in the combined Graphics and Reflective Solutions businesses,” it said.
The company also added that inflation continues to be significant in its materials businesses; it anticipates more than 20 per cent inflation in 2022 compared to prior year.
Within its Retail Branding and Information Solutions business, its reported sales increased by 24 per cent to $658 million (A$945.95 million).
“Growth was strong in the high value product categories, including Intelligent Labels and external embellishments. Sales decreased by low-single digits in the base business following strong prior quarter, up mid-single digits year-to-date,” it added.
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