Avery Dennison has released its second quarter results, recodring a six per cent increase in net sales.
The company’s labels and graphic materials sales rose 5.5 per cent, driven by solid growth in high value categories with modest growth in the base business. The Avery results highlight the ongoing growth in labels and packaging as well as self-adhesive film, and compare well with suppliers of paperstock to the commercial print sector.
Mitch Butier, president and chief executive of Avery Dennison, says, “We continued to make good progress against our strategic and financial objectives in the second quarter. LGM generated strong profitability despite a short-term moderation in organic growth; RBIS had a great quarter, with accelerated sales growth and margin expansion as our multi-year transformation delivers; and IHM continues to make progress against its strategic priorities, including the completion of two acquisitions.
“We have raised our outlook for full-year earnings per share, reflecting continued strong operating performance and a reduction in the tax rate. We continue to 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.”
The company’s operating margin improved 20 basis points to 13.2 per cent. Retail branding and information solutions reported sales came in at 4.6 per cent. Industrial and healthcare materials reported sales increase of 8.7 per cent. Sales in industrial categories increased low-double digits on an organic basis, offsetting the anticipated decline in healthcare categories.