Avery Dennison Corp (AVY) Posts Mixed Fourth Quarter and Full Year 2023 Results
In This Article:
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Net Sales: Q4 net sales increased by 4.2% to $2.11 billion, full-year sales declined by 7.5% to $8.36 billion.
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Operating Income: Q4 operating income rose by 18% to $220.4 million, full-year operating income decreased by 27% to $782.9 million.
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Net Income: Q4 net income improved by 16% to $143.1 million, full-year net income dropped by 34% to $503.0 million.
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Earnings Per Share (EPS): Q4 EPS increased by 17% to $1.77, full-year EPS decreased by 33% to $6.20.
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Adjusted EBITDA: Q4 adjusted EBITDA up by 16% to $338.1 million, full-year adjusted EBITDA down by 7.5% to $1.26 billion.
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Capital Deployment: $225 million spent on acquisitions and $394 million returned to shareholders in 2023.
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2024 Guidance: Projected reported EPS of $8.65 to $9.15 and adjusted EPS of $9.00 to $9.50.
On January 31, 2024, Avery Dennison Corp (NYSE:AVY) released its 8-K filing, detailing its fourth quarter and full year 2023 financial results. The company, a global materials science and digital identification solutions provider, faced a challenging year marked by significant inventory destocking but is looking forward to a rebound in 2024.
Avery Dennison manufactures pressure-sensitive materials, merchandise tags, and labels, and operates a specialty converting business that includes radio-frequency identification (RFID) inlays and labels. With a substantial portion of its revenue generated from international operations, the company's performance is a bellwether for the broader Packaging & Containers industry.
Despite a year-over-year decline in full-year net sales, the company's fourth quarter showed improvement, with a 4.2% increase in net sales to $2.11 billion. The Solutions Group segment was a strong performer, with an 18.3% increase in Q4 sales, driven by a 13.9% organic growth. However, the Materials Group experienced a 1.6% decline in Q4 sales.
Operating income for the fourth quarter rose to $220.4 million, an 18% increase, reflecting the company's strategic focus on cost reduction and efficiency. However, full-year operating income saw a significant decline of 27% to $782.9 million, due to the challenging market conditions faced throughout the year.
Net income for the fourth quarter was $143.1 million, a 16% increase from the previous year, while full-year net income fell by 34% to $503.0 million. Earnings per share for the fourth quarter increased by 17% to $1.77, but the full-year figure dropped by 33% to $6.20.
The company's adjusted EBITDA for the fourth quarter improved by 16% to $338.1 million, while the full-year adjusted EBITDA decreased by 7.5% to $1.26 billion. The adjusted EBITDA margin for the fourth quarter was 16.0%, up from 12.9% in the same period last year.