Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Q1 2025 Earnings Presentation
19 slides from Avery Dennison's earnings presentation, Apr 23, 2025
Slide 1: First Quarter 2025 Financial Review and Analysis
First Quarter 2025 Financial Review and Analysis (preliminary, unaudited) April 23, 2025 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. April 23, 2025 Preliminary & unaudited, Q1 2025 financial review and analysis 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, a
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures as defined by SEC rules. We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using cert
Slide 4: Delivered strong results in Q1 2025, in-line with expectations
Delivered strong results in Q1 2025, in-line with expectations Reported operating income of $255 mil. ● Adj. EBITDA margin (non-GAAP) of 16.4%, up 10 bps Net sales of $2.1 bil. ● Adj. operating margin (non-GAAP) of 12.8%, up 10 bps Organic sales change (non-GAAP) up 2.3% Adj. FCF (non-GAAP) of $(53)
Slide 5: Both businesses achieved strong first quarter results in a dynamic environment
Both businesses achieved strong first quarter results in a dynamic environment Materials Group delivered solid top-line growth and strong margins ● 1% organic sales growth; up LSD in both developed and emerging markets ○ Volume/mix up LSD, partially offset by deflation-related price reductions ● Stron
Slide 6: Proven track record of delivering strong results across range of macro environments
Proven track record of delivering strong results across range of macro environments Strength and durability of franchise provide multiple levers to deliver in various scenarios ● Competitively advantaged: #1 position in 80%+ of our portfolio; global scale and footprint; innovation leadership; high-v
Slide 7: Quarterly sales trend analysis
Quarterly sales trend analysis 1Q24 2Q24 3Q24 4Q24 1Q25 Reported Sales Change 4.2% 6.9% 4.1% 3.6% (0.1%) Organic Sales Change 3.1% 7.1% 4.3% 3.3% 2.3% Acquisitions/Divestitures 1.1% 0.9% 0.3% 0.2% - Sales Change ex. Currency 4.2% 8.0% 4.7% 3.5% 2.3% (Non-GAAP)(1) Currency Translation 0.0% (1.1%) (0.
Slide 8: Quarterly sales trend analysis (cont.)
Quarterly sales trend analysis (cont.) Organic Sales Change 1Q24 2Q24 3Q24 4Q24 1Q25 Materials Group 1.9% 5.6% 3.6% 3.7% 1.2% Solutions Group 5.8% 10.8% 6.0% 2.6% 4.9% Total Company 3.1% 7.1% 4.3% 3.3% 2.3% Total Company 4.2% 8.0% 4.7% 3.5% 2.3% Sales Change Ex. Currency April 23, 2025 Preliminary &
Slide 9: First quarter 2025 sales and margin comparisons
First quarter 2025 sales and margin comparisons Sales Change Reported Ex. Currency Organic Materials Group (1.1%) 1.2% 1.2% Solutions Group 2.0% 4.9% 4.9% Total Company (0.1%) 2.3% 2.3% Reported Adjusted Adjusted Operating Margin Operating Margin EBITDA Margin 1Q25 1Q24 1Q25 1Q24 1Q25 1Q24 Materials
Slide 10: First Quarter 2025 Results: Materials Group
First Quarter 2025 Results Materials Group 2024 Sales by Product Product Category Reported sales decreased 1.1% to $1.5 bil. Label Materials Sales up 1.2% organically High-value Graphics & Reflectives ● High-value categories, incl. Intelligent Labels, up Categories Performance Tapes & Medical HSD in
Slide 11: First Quarter 2025 Results: Solutions Group
First Quarter 2025 Results Solutions Group 2024 Sales by Product Product Category Reported sales increased 2.0% to $668 mil. Base Solutions Sales up 4.9% organically High-value Intelligent Labels (IL) ● High-value categories, incl. Intelligent Labels, up LSD Categories Vestcom ○ Intelligent Labels u
Slide 12: Enterprise-wide Intelligent Labels delivering significant growth across the portfolio
Enterprise-wide Intelligent Labels — delivering significant growth across the portfolio, with clear competitive advantages in scale, innovation and go-to-market strategy Apparel In Q1 2025, MSD growth in IL; apparel up MSD and strong growth in food, partially offset by decline in logistics, as expect
Slide 13: Q2 2025 EPS Guidance
Q2 2025 EPS Guidance Low High Reported EPS $2.25 $2.45 Est. restructuring costs and other items ~$0.05 ~$0.05 Adjusted EPS $2.30 $2.50 ● Shifting to quarterly from full-year guidance due to macro uncertainty ● In Q2, expect sequential increase in earnings vs. Q1 ○ Benefits from traditional seasonalit
Slide 14: Appendix
Appendix September 18, 2024 Avery Dennison 2024 Investor Day 14
Slide 15: Broad exposure to diverse end markets across portfolio
Broad exposure to diverse end markets across portfolio Est. 2024 Sales by End Market General industrial, building and construction, electronics, automotive, Food, home and Industrial/ appliances/whitegoods, personal care, beer Durable architecture, corporate and beverage, wine branding and signage a
Slide 16: Diversified geographic exposure, a competitive strength
Diversified geographic exposure, a competitive strength 2024 Sales by Manufacturing Location Rest of Asia Pacific ~16% ● Vast majority of U.S.-produced sales U.S. ~30% are for domestic consumption ● Nearly all of U.S./Canada/Mexico $8.8B China import/exports are USMCA compliant ~16% (including RFID in
Slide 17: Disciplined approach to capital allocation
Disciplined approach to capital allocation ● Strong balance sheet with ample capacity; 2.3x net debt to adj. EBITDA ratio at the end of Q1 ● Continuing to invest organically in our businesses ● Growing our dividend in-line with earnings over the long-term ● Disciplined deployment of capital for stra
Slide 18: Adjusted EPS change ex. currency
Adjusted EPS change ex. currency April 23, 2025 Preliminary & unaudited, Q1 2025 financial review and analysis 18
Slide 19: averydennison.com #MakingPossible
averydennison.com #MakingPossible © 2025 Avery Dennison Corporation. All rights reserved. The “Making Possible” tagline, Avery Dennison and all other Avery Dennison brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademarks of their