Avery Dennison Corporation · NYSE:AVY
Avery Dennison — Q1 2021 Earnings Presentation
13 slides from Avery Dennison's earnings presentation, Apr 28, 2021
Slide 1: First Quarter 2021 Financial Review and Analysis
First Quarter 2021 Financial Review and Analysis (preliminary, unaudited) April 28, 2021 Supplemental Presentation Materials Unless otherwise indicated, comparisons are to the same period in the prior year. Exhibit 99.2
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,
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 c
Slide 4: Review
First Quarter 2021 Review Strong start to the year across portfolio; raising outlook for 2021 Reported sales increased 19% Sales growth ex. currency (non-GAAP) of 11%; organic sales growth (non-GAAP) of 9% Volume higher than anticipated across segments (incl. benefit from pre-buy) Intelligent Labels
Slide 5: COVID-19/Operational Update
COVID-19/Operational Update Uncertainty surrounding global health crisis remains elevated Many parts of the world are experiencing a resurgence in COVID-19 cases Safety and well-being of employees remains our top priority World-class safety protocols implemented and continue to adapt as pandemic evo
Slide 6: Quarterly Sales Trend Analysis
Quarterly Sales Trend Analysis 1Q20 2Q20 3Q20 4Q20 1Q21 Reported Sales Change (1.0%) (14.9%) (1.8%) 12.3% 19.1% Organic Sales Change 0.3% (13.7%) (3.6%) 3.2% 8.8% Acquisitions/Divestitures 0.7% 1.7% 2.3% 2.0% 2.1% Sales Change Ex. Currency* 1.0% (12.0%) (1.3%) 5.2% 10.9% Extra Week Impact - - - 4.9%
Slide 7: Quarterly Sales Trend Analysis (cont.)
Organic Sales Change 1Q20 2Q20 3Q20 4Q20 1Q21 LGM 2% (5%) (3%) 4% 8% LPM 3% 0% (2%) 5% 7% Graphics & Reflective (5%) (31%) (8%) (5%) 9% RBIS* (1%) (36%) (5%) 3% 9% IHM (8%) (21%) (8%) 1% 16% Total Company 0% (14%) (4%) 3% 9% Total Company Sales Change Ex. Currency 1% (12%) (1%) 5% 11% Quarterly Sale
Slide 8: First Quarter Sales Growth and Operating Margin Comparison
First Quarter Sales Growth and Operating Margin Comparison Operating Margin Reported Operating Margin Adj. (Non-GAAP) EBITDA Margin Adj. (Non-GAAP) 1Q21 1Q20 1Q21 1Q20 1Q21 1Q20 Label and Graphic Materials 16.4% 14.7% 16.3% 14.8% 18.4% 17.0% Retail Branding and Information Solutions 12.4% 7.7% 12.9%
Slide 9: Label and Graphic Materials
Label and Graphic Materials Reported sales increased 17.3% to $1.38 bil. Sales were up 8.4% ex. currency and 7.6% organically Label and Packaging Materials up ~7% organically, with strong growth in both the high value product categories and the base business Combined Graphics and Reflective Solution
Slide 10: Retail Branding and Information Solutions
Retail Branding and Information Solutions Reported sales increased 20.1% to $483 mil. Sales were up 15.0% ex. currency and 9.3% organically Strong growth in both the high value product categories and the base business Intelligent Labels up ~40% ex. currency with benefit of Smartrac acquisition, and
Slide 11: Industrial and Healthcare Materials
Industrial and Healthcare Materials Reported sales increased 29.8% to $192 mil. Sales were up 18.8% ex. currency and 16.3% organically Industrial categories up ~20%, driven largely by strength in automotive Healthcare down low-single digits Reported operating margin increased 220 bps to 12.3% Adjust
Slide 12: 2021 EPS Guidance
2021 EPS Guidance Add Back: Est. restructuring costs and other items Adjusted EPS (non-GAAP) Reported EPS $8.25 – $8.65 $8.40 – $8.80 Contributing Factors to 2021 Results Reported sales growth of 10% to 12%; ~2% currency tailwind; ~1% calendar shift headwind Ex. currency growth of 9% to 11%; ~1% ben
Slide 13: Thank you
Thank you IN AVERY DENNISON