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Avery Dennison Corporation AVY has delivered adjusted earnings of $2.38 per share in fourth-quarter 2024, beating the Zacks Consensus Estimate of $2.37. The bottom line increased 10% year over year.
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Including one-time items, the company has reported earnings per share (EPS) of $2.16 compared with the year-ago quarter’s $1.77.
Avery Dennison’s Revenues & Margins Improve Y/Y in Q4
Total revenues moved up 3.6% year over year to $2.19 billion, aided by higher volumes in both segments. However, the top line missed the Zacks Consensus Estimate of $2.20 billion.
The cost of sales in the quarter improved 4.1% year over year to $1.58 billion. The gross profit rose 2.2% year over year to $609 million.
Avery Dennison Corporation Price, Consensus and EPS Surprise
Avery Dennison Corporation price-consensus-eps-surprise-chart | Avery Dennison Corporation Quote
Marketing, general and administrative expenses were $329 million compared with $335 million in the year-ago quarter. The adjusted operating profit was around $280 million compared with the prior-year quarter’s $261 million. The adjusted operating margin was 12.8% compared with 12.4% in the prior-year quarter.
AVY’s Segments Deliver Y/Y Growth in Revenues & Profit
Revenues in the Materials Group segment increased 3.7% year over year to $1.47 billion in the reported quarter. The reported figure missed our estimate of $1.48 billion. On an organic basis, sales grew 3.7%. We predicted organic sales to rise 4.2%.
The segment’s adjusted operating profit increased 9.6% year over year to $217.5 million. Our estimate was $231.5 million.
Revenues in the Solutions Group moved up 3.2% year over year to $714 million. We estimated revenues of $735 million for this segment. On an organic basis, sales improved 2.6% year over year. Our model predicted a rise of 6.2%.
The segment’s adjusted operating income grew 0.9% year over year to $81 million. Our estimate was $74 million.
Avery Dennison’s Cash & Debt Position
The company returned $525 million in cash to shareholders through share repurchases and dividend payments in 2024. AVY repurchased 1.2 million shares throughout the year.
Avery Dennison ended 2024 with cash and cash equivalents of $329 million compared with $215 million at the end of the prior year.
The company’s long-term debt was $2.56 billion at the end of 2024, down from $2.62 billion at the end of 2023. Its net debt to adjusted EBITDA ratio was 2.0X.
AVY realized approximately $63 million in pre-tax savings from restructuring (net of transition costs) in 2024. The company also incurred pre-tax restructuring charges of around $42 million.