CCL Industries Announces Record Results for 2Q 2024

CCL Industries Inc. reported 2024 second-quarter results.

Sales for the second quarter of 2024 increased 12.2% to $1,845.6 million, compared to $1,644.5 million for the second quarter of 2023, with organic growth of 8.5%, acquisition-related growth of 3.0% and a 0.7% positive impact from foreign currency translation.

Operating income for the second quarter of 2024 improved 25.4% to $303.5 million compared to $242 million for the comparable quarter of 2023. Foreign currency translation had a 0.4% positive impact on operating income for the comparable quarters.

For the six-month period ended June 30, 2024, sales, operating income and net earnings improved 8.7%, 17.2% and 46.3% to $3.6 billion, $585.5 million and $471.6 million, respectively, compared to the same six-month period in 2023.

The 2024 six-month period included results from nine acquisitions completed since Jan. 1, 2023, delivering acquisition-related sales growth of 3%. Organic sales growth was 5.3% and foreign currency translation had a positive 0.4% impact.

In particular, Checkpoint’s sales increased 16.1% to $244.3 million on organic growth of 17.5% partially offset by 1.4% negative impact from foreign currency translation. Operating income was $36.7 million, up 30.6%, with a 15% operating margin, up 170 bps.

“Record quarterly adjusted earnings were driven by excellent results from our CCL, Avery and Checkpoint segments, each posting organic growth and strong profitability improvement, albeit compared to a slow quarter in 2023,” Geoffrey T. Martin, president and CEO, said. “Sales increased 9.0% organically in the CCL Segment with growth in all vertical markets and geographic regions. Home & Personal Care sales increased modestly in North America but posted stronger gains internationally, most notably in Latin America and South East Asia, both up double digit. Pressure sensitive labels grew organically in all regions and unit volumes for aluminum aerosols and bottles also increased driven by higher output in Mexico.

“Avery posted significantly improved profitability on solid demand in the Direct-to-Consumer badging and RFID wristband and card businesses as well as an earlier than expected start to the back-to-school season that aided profitability,” Martin noted. “Checkpoint posted solid results in MAS products and exceptional 40% organic sales growth at ALS, both in RFID and traditional product categories, as retailers continue to rebuild inventory and, in Europe, manage Red Sea supply chain disruption.”