Avery Dennison Reports 4Q, Full Year 2024 Results

Avery Dennison Corporation announced preliminary, unaudited results for its fourth quarter and full year ended Dec. 28, 2024.

For 2024, fiscal year net sales were $8.8 billion, up 4.7%. Sales change excluding currency were up 5.1%, with organic sales up 4.5%. Reported EPS for 2024 was $8.73, with adjusted EPS of $9.43, up 19%. Fourth quarter 2024 net sales were $2.2 billion, up 3.6%.

“We delivered strong results in 2024, achieving 19% earnings growth,” said Deon Stander, president and CEO. “Both our Materials and Solutions Groups delivered strong top-and bottom-line results, with our industries recovering from downstream inventory destocking last year, once again demonstrating the strength of our overall franchise.

“We remain well-positioned to continue our long track record of strong earnings growth in 2025, including accelerating growth in our high-value categories, which now account for almost half of our portfolio,” added Stander. “We are confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation in a range of geopolitical and macro scenarios.

Fourth Quarter 2024 Results by Segment

Materials Group
• Reported sales increased 4% to $1.5 billion. Sales were up 4% ex. currency and on an organic basis.
o High-value categories up high single digits; base up low single digits or-ganically
o Label Materials up low single digits organically
o Graphics and Reflectives up low single digits; Performance Tapes and Medical sales comparable to the prior year
• Reported operating margin was 14.7%.
o Adjusted Operating margin (non-GAAP) of 14.8%, up 80 basis points
o Adjusted EBITDA margin (non-GAAP) was 17.0%, up 80 basis points, driven by benefits from higher volume/mix and productivity, partially off-set by the net impact of pricing and raw material input costs.
Solutions Group
• Reported sales increased 3% to $714 million. Sales were up 3% ex. currency and on an organic basis.
o Sales in high-value categories were down mid-single digits ex. currency, as strong growth in IL apparel and general retail was more than offset by IL logistics and other high-value solutions.
 In Vestcom, signed a new agreement with a leading U.S. health so-lutions company for pricing productivity solutions.
o Sales were up mid-teens ex. currency in base solutions.
• Reported operating margin was 9.1%.
o Adjusted operating margin of 11.4%, down 20 basis points
o Adjusted EBITDA margin was 17.8%, down 40 basis points compared to prior year as benefits from productivity and higher volume were more than offset by higher employee-related costs and growth investments.

The company’s balance sheet remains strong and its net debt to adjusted EBITDA ratio (non-GAAP) was 2.0x at the end of the fourth quarter.