Avery Dennison Corporation · NYSE:AVY

Avery Dennison — Q1 2024 Earnings Presentation

13 slides from Avery Dennison's earnings presentation, Apr 24, 2024

  1. Slide 1: First Quarter 2024 Financial Review and Analysis

    First Quarter 2024 Financial Review and Analysis (preliminary, unaudited) April 24, 2024 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. April 24, 2024 Preliminary & unaudited, Q1 2024 financial review and analysis 1

  2. 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

  3. 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

  4. Slide 4: Delivered strong start to year; Q1 adj. EPS up 35%; reaffirm FY EPS guidance

    Delivered strong start to year; Q1 adj. EPS up 35%; reaffirm FY EPS guidance Materials Group delivered significant volume growth and margin expansion ● Inventory destocking subsided, as expected Solutions Group delivered double-digit sales growth ex. currency, and expanded margins ● Apparel imports re

  5. Slide 5: First quarter 2024 review

    First quarter 2024 review Net sales of $2.2 bil. ● Sales change ex. currency (non-GAAP) up 4%; organic sales change (non-GAAP) up 3% ○ Volume up high-single digits, partially offset by deflation-related price reductions Reported operating income of $254 mil. ● Adj. EBITDA (non-GAAP) of $351 mil., up

  6. Slide 6: Intelligent Labels

    Intelligent Labels ● Industry-leading position ~$850M ○ Global scale, proprietary technology, 18% innovation and go-to-market team Organic Sales CAGR ● Helping solve complex industry challenges ○ Optimize labor/supply chains, reduce waste, advance sustainability and help brands/consumers better conn

  7. Slide 7: Quarterly sales trend analysis

    Quarterly sales trend analysis 1Q23 2Q23 3Q23 4Q23 1Q24 Reported Sales Change (12%) (11%) (9%) 4% 4% Organic Sales Change(1) (9%) (10%) (11%) 1% 3% Acquisitions/Divestitures 0% 1% 1% 1% 1% Sales Change Ex. Currency(1)(2) (9%) (10%) (10%) 3% 4% Currency Translation (3%) (1%) 1% 2% 0% Reported Sales C

  8. Slide 8: Quarterly sales trend analysis (cont.)

    Quarterly sales trend analysis (cont.) Organic Sales Change 1Q23 2Q23 3Q23 4Q23 1Q24 Materials Group (9%) (12%) (16%) (4%) 2% Solutions Group (9%) (7%) 1% 14% 6% Total Company (9%) (10%) (11%) 1% 3% Total Company (9%) (10%) (10%) 3% 4% Sales Change Ex. Currency April 24, 2024 Preliminary & unaudited

  9. Slide 9: Q1 sales growth and operating margin comparisons

    Q1 sales growth and operating margin comparisons Q1 Sales Change Reported Ex. Currency Organic Materials Group 2% 2% 2% Solutions Group 8% 10% 6% Total Company 4% 4% 3% Reported Adj. EBITDA Margin Operating Margin (non-GAAP) 1Q24 1Q23 1Q24 1Q23 Materials Group 15.1% 11.0% 18.3% 14.2% Solutions Group

  10. Slide 10: Materials Group First Quarter 2024 Results

    First Quarter 2024 Results AVY ‘23 Sales by Segment Materials Group Materials Group Reported sales increased 2% to $1.5 bil. 69% Solutions Group Sales up 2% ex. currency and organically ● Label Materials up mid-single digits on organic basis ○ Volume/mix up low-double digits, partially offset by Mat

  11. Slide 11: Solutions Group First Quarter 2024 Results

    First Quarter 2024 Results AVY ‘23 Sales by Segment Solutions Group Materials Group Reported sales increased 8% to $655 mil. 31% Solutions Group Sales up 10% ex. currency and 6% organically ● Solutions high-value categories up low double-digits organically Solutions Group Product Category ● Solution

  12. Slide 12: 2024 EPS Guidance

    2024 EPS Guidance Previous Updated Reported EPS $8.65 - $9.15 $8.60 - $9.10 Add Back: Est. restructuring costs and other items ~$0.35 ~$0.40 Adjusted EPS $9.00 - $9.50 $9.00 - $9.50 Full-year 2024 contributing factors ● Reported sales growth of 3.5% to 5.5% (previously 3.0% to 5.0%), including ~0.5%

  13. Slide 13: April Preliminary & unaudited,

    ©April 2024 24, Avery2024 Preliminary Dennison Corporation. & unaudited, All rights reserved. Q1 2024 Avery Dennison financial and all review other Avery and Dennison analysis brands, product names and codes are trademarks of Avery Dennison Corporation. All other brands or product names are trademark

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