Avery Dennison Corporation (NYSE: AVY) has announced its first-quarter results for 2024, and the figures indicate a strong performance across various metrics.
The reported EPS for the first quarter of 2024 stands at $2.13, marking a substantial 43% increase from the previous period. Adjusted EPS, a non-GAAP metric, also saw a significant rise of 35%, reaching $2.29.
In terms of net sales, the company reported $2.2 billion for the first quarter of 2024, reflecting a 4% increase from the same period in the prior year. When excluding currency impacts, the sales change (non-GAAP) also showed a 4% increase, with organic sales change (non-GAAP) up 3%.
Looking ahead, Avery Dennison has provided guidance for the full fiscal year 2024, with reported EPS expected to be within the range of $8.60 to $9.10, and adjusted EPS guidance set at $9.00 to $9.50.
The company's segment results for the first quarter of 2024 further highlight its performance. In the Materials Group, reported sales increased by 2% to $1.5 billion, with label materials sales up mid-single digits on an organic basis. The reported operating margin for this segment was 15.1%, and the adjusted EBITDA margin (non-GAAP) saw a notable increase of 410 basis points, reaching 18.3%.
Meanwhile, the Solutions Group reported an 8% increase in sales to $655 million. Sales in high-value categories were up low double-digits on an organic basis, and the reported operating margin was 8.6%. The adjusted EBITDA margin also showed improvement, rising to 16.1%.
During the first quarter of 2024, Avery Dennison returned $81 million in cash to shareholders through dividends and share repurchases. The company repurchased 0.1 million shares at an aggregate cost of $16 million, contributing to a reduction in the share count by 0.3 million compared to the same period last year.
The company's balance sheet remains robust, with a net debt to adjusted EBITDA (non-GAAP) ratio of 2.3x at the end of the first quarter.
In terms of tax and cost reduction activities, the reported effective tax rate for the first quarter was 26.5%, while the adjusted tax rate (non-GAAP) stood at 26.0%. Additionally, the company realized approximately $19 million in pre-tax savings from restructuring and incurred approximately $6 million in pre-tax restructuring charges during the same period.
Avery Dennison's revised guidance range for 2024 reported earnings per share is $8.60 to $9.10. Excluding estimated restructuring charges and other items, the company continues to expect 2024 adjusted earnings per share of $9.00 to $9.50.
Today the company's shares have moved 0.5% to a price of $212.29. For more information, read the company's full 8-K submission here.
