Avery Dennison Corp (NYSE:AVY)
$ 170.75 -2.87 (-1.65%) Market Cap: 13.48 Bil Enterprise Value: 16.75 Bil PE Ratio: 19.67 PB Ratio: 6.21 GF Score: 84/100
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Q1 2025 Avery Dennison Corp Earnings Call Transcript

Apr 23, 2025 / 03:00PM GMT
Release Date Price: $170.25 (-2.62%)

Key Points

Positve
  • Avery Dennison Corp (AVY) delivered a strong first quarter with earnings per share up 4% ex-currency, in line with expectations.
  • The company experienced strong growth in high-value categories, particularly in graphics, reflective solutions, and industrial tapes.
  • The Solutions Group saw strong top-line growth and margin expansion, driven by growth in the base business and high-value solutions.
  • Enterprise-wide Intelligent Labels grew mid-single digits on an organic basis, with strong growth in apparel and food categories.
  • Avery Dennison Corp (AVY) maintains a strong balance sheet with a net debt to adjusted EBITDA ratio of 2.3, providing investment flexibility.
Negative
  • Macro uncertainty is elevated due to an evolving trade policy environment and reduced global GDP growth outlooks.
  • The company faces potential impacts from recent tariff changes, which could affect material purchases and macro demand.
  • Apparel growth is expected to decline mid-single digits in the second quarter due to tariff-related sourcing and pricing challenges.
  • Free cash flow was negative $50 million in the first quarter, in line with historical patterns but still a concern.
  • The logistics segment experienced a decline, partially offsetting growth in other areas, and no large-scale rollouts are expected in 2025.
Operator

Ladies and gentlemen, thank you for standing by. (Operator Instructions) Welcome to Avery Dennison's earnings conference call for the first quarter ended on March 29, 2025. This call is being recorded and will be available for replay after 4:00 PM Eastern Time today and until midnight Eastern Time, April 30, 2025. (Operator Instructions)

I'd now like to turn the call over to John Eble, Avery Dennison's Vice President of Finance and Investor Relations. Please go ahead, sir.

John Eble
Avery Dennison Corp - Vice President - Finance and Investor Relations

Thank you, Regina. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified, and reconciled from GAAP on Schedules A4 to A8 of the financial statements accompanying today's earnings release.

We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made

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