“We continued to make good progress against our strategic and financial objectives in the second quarter,” said Mitch Butier, Avery Dennison president and CEO. “LGM generated strong profitability despite a short-term moderation in organic growth; RBIS had a great quarter, with accelerated sales growth and margin expansion as our multi-year transformation delivers; and IHM continues to make progress against its strategic priorities, including the completion of two acquisitions.”
Label and Graphic Materials’ (LGM) reported sales increased 5.5%; operating margin improved 20 basis points to 13.2%.
Retail Branding and Information Solutions’ (RBIS) sales increased 4.6%; on an organic basis, sales grew an estimated 5.8%, driven by strength in RFID and the base business. Operating margin improved 110 basis points to 7.5%.
Industrial and Healthcare Materials’ (IHM) sales increased 8.7%. Operating margin declined 580 basis points to 8.5%.