Avery Dennison Corp. (NYSE:AVY) Q4 2022 Earnings Conference Call February 2, 2023 1:00 PM ET Company Participants John Eble - Head of Investor Relations Mitch Butier - Chairman and CEO Greg Lovins - Senior Vice President and CFO Deon Stander - President and COO Conference Call Participants Ghansham Panjabi - Robert W. Baird Adam Josephson - KeyBanc Capital Markets George Staphos - BofA Securities John McNulty - BMO Capital Markets Bryan Burgmeier - Citigroup Mike Roxland - Truist Securities Jeffrey Zekauska ...

Avery Dennison Corp. (NYSE:AVY) Q3 2022 Earnings Conference Call October 26, 2022 1:00 PM ET Company Participants John Eble - Head of Investor Relations Mitch Butier - Chairman and CEO Greg Lovins - Senior Vice President and CFO Deon Stander - President and COO Conference Call Participants Ghansham Panjabi - Robert W. Baird Anthony Pettinari - Citigroup John McNulty - BMO Capital Markets Jeffrey Zekauskas - JPMorgan George Staphos - BofA Securities Joshua Spector - UBS Adam Josephson - KeyBanc Capital Ma ...

Avery Dennison Corp (NYSE:AVY) Q2 2022 Earnings Conference Call July 27, 2022 10:30 AM ET Company Participants John Eble - Executive, IR Mitchell Butier - Chairman & CEO Gregory Lovins - SVP & CFO Conference Call Participants George Staphos - Bank of America Merrill Lynch Ghansham Panjabi - Robert W. Baird & Co. John McNulty - BMO Capital Markets Bryan Burgmeier - Citigroup Michael Roxland - Truist Securities Joshua Spector - UBS Christopher Kapsch - Loop Capital Markets Paretosh Misra - Berenberg Operator ...

Avery Dennison Corporation (NYSE:AVY) Q1 2022 Earnings Conference Call April 26, 2022 12:00 PM ET Company Participants John Eble - Head of Investor Relations Mitch Butier - Chairman and Chief Executive Officer Greg Lovins - Senior Vice President and Chief Financial Officer Conference Call Participants George Staphos - Bank of America Ghansham Panjabi - Robert W. Baird Anthony Pettinari - Citigroup John McNulty - BMO Jeffrey Zekauskas - J.P. Morgan Josh Spector - UBS Mike Roxland - Truist Securities Adam Jos ...

Financial Data and Key Metrics Changes - The company reported an EPS of $8.91 for 2021, up 25% from 2020 and 35% from 2019 levels [11] - Revenue grew by approximately 19% on a constant currency basis and 16% organically [11][12] - Adjusted EBITDA margin for Q4 was 14.9%, down compared to the prior year but up 40 basis points compared to 2019 [23] Business Line Data and Key Metrics Changes - Labeling and Graphic Materials (LGM) sales increased by 12% ex. currency and 11% on an organic basis, driven by high single-digit price impacts and higher volume [24] - Retail Branding and Information Solutions (RBIS) sales rose 39% ex. currency and 20% on an organic basis, with Intelligent Label sales up more than 20% organically [26] - Industrial and Healthcare Materials (IHM) sales increased 12% ex. currency and 10% on an organic basis, with adjusted EBITDA margin decreasing to 12.9% [27] Market Data and Key Metrics Changes - North America sales for LGM were up mid-teens, while Western Europe sales were up high single digits despite raw material and labor challenges [24] - Emerging market sales were up roughly 10% in the quarter, with India and China both showing double-digit growth [25] Company Strategy and Development Direction - The company focuses on five strategic pillars: driving outside growth in high-value categories, growing profitably in base businesses, focusing on productivity, effectively allocating capital, and leading in an environmentally and socially responsible manner [8] - The Intelligent Labels platform is expected to grow at a long-term rate of 15% to 20% annually, with significant opportunities in food and logistics markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from COVID-19, supply chain constraints, and inflationary pressures, particularly in LGM for North America and Europe [12] - The company anticipates adjusted EPS for 2022 to be in the range of $9.35 to $9.75, with organic sales growth expected to be 8% to 11% [27][28] Other Important Information - The company generated $798 million of free cash flow in 2021, up 46% compared to the prior year [23] - The company deployed $1.5 billion for acquisitions and returned $400 million to shareholders through share repurchases and dividends [23] Q&A Session Summary Question: Can you provide more color on the raw material constraints? - Management noted that constraints have shifted from petrochemicals to paper, particularly in Europe, impacting volumes [32][33] Question: Does the inflation in paper affect competitive positioning? - Management stated that they have been able to raise prices across all categories and maintain competitiveness despite challenges in paper supply [38] Question: What is the expected timing for being price-cost neutral? - Management indicated that the lag for price adjustments is expected to be about a quarter, with ongoing inflation impacting the timeline [50][51] Question: How are investments in intelligent labels expected to impact growth? - Management highlighted that the $35 million investment in intelligent labels is primarily for operating expenses aimed at market development and innovation [41][44] Question: What is the outlook for production impacts in China? - Management confirmed that all plants in China are operational and not experiencing lockdowns, with no significant impact on guidance [58][59] Question: What was the amount of raw materials that could not be recovered by price? - Management acknowledged a gap in Q4 due to inflation, but the dollar gap remains roughly the same as previous quarters [60][61]

Avery Dennison Corporation (NYSE:AVY) Q3 2021 Results Conference Call October 27, 2021 1:00 PM ET Company Participants John Eble - Head, IR Mitch Butier - Chairman, President and CEO Greg Lovins - SVP and CFO Conference Call Participants Ghansham Panjabi - Robert W. Baird & Company Anthony Pettinari - Citigroup George Staphos - Bank of America Securities John McNulty - BMO Josh Spector - UBS Securities Jeff Zekauskas - JP Morgan Paretosh Misra - Berenberg Capital Chris Kapsch - Loop Capital Operator Ladies ...

Financial Data and Key Metrics Changes - In Q2 2021, sales grew 29% on a constant currency basis, with revenue up 14% compared to 2019, EBITDA margins increased by 80 basis points, and EPS rose by 30% [7][8][29] - Adjusted earnings per share reached $2.25, exceeding expectations by about $0.10 and approximately $1 per share above the prior year [22][29] - The company raised its full-year adjusted EPS guidance to between $8.65 and $8.95, reflecting strong Q2 performance and increased expectations for the remainder of the year [29][30] Business Line Data and Key Metrics Changes - Label and Graphic Materials (LGM) sales increased by 17% ex-currency and 16% organically, driven by higher volume and pricing [25] - Retail Branding and Information Solutions (RBIS) sales surged 73% ex-currency and 72% organically, with a 14% increase compared to 2019 [27] - Industrial and Healthcare Materials segment saw a 39% increase ex-currency and 33% organically, reflecting strong growth in industrial categories [28] Market Data and Key Metrics Changes - North America sales were up high single digits, Western Europe sales increased mid-teens, and emerging markets grew roughly 20% [26] - The Asia-Pacific region experienced approximately 20% growth, led by significant increases in India and the ASEAN region, while Latin America grew over 30%, particularly in Brazil [26] Company Strategy and Development Direction - The company remains focused on executing five key strategies: driving outsized growth in high-value categories, growing profitably in base businesses, focusing on productivity, effectively allocating capital, and leading in an environmentally and socially responsible manner [14] - The acquisition of Vestcom is expected to enhance the company's position in high-value categories and accelerate its intelligent label strategy [6][15] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing uncertainty due to the global health crisis and supply chain constraints but expressed confidence in demand for the second half of the year [8][9] - The company anticipates continued strong organic sales growth and has raised its full-year sales growth expectations to 14% to 16% ex-currency [29][30] Other Important Information - The company generated $388 million of free cash flow year-to-date, with $206 million in Q2, and returned $203 million in cash to shareholders through dividends and share repurchases [24] - The acquisition of Vestcom, valued at $1.45 billion, is expected to be accretive to EPS by 2022 and will be funded through a combination of cash and debt [21][22] Q&A Session Summary Question: How does Vestcom leverage Avery's core capabilities? - The acquisition aligns with strategic initiatives, increasing exposure to high-value categories and enhancing data management capabilities [36] Question: What is the expected burden of inflation on second-half earnings? - The company expects a gap of roughly $0.15 due to inflation impacts from the first half to the second half [39] Question: Can you disaggregate the incremental core sales increase? - Approximately 40% to 50% of the increase came from stronger second-quarter volumes, with the remainder expected in the back half [41] Question: What are Vestcom's historical growth rates and margin profiles? - Vestcom has consistently delivered high single-digit growth rates and margins above the company average [44] Question: What materials are experiencing shortages? - The company is facing shortages primarily in chemicals and films, along with freight issues [60] Question: How much did the non-Intelligent Label solutions area grow in RBIS? - The non-Intelligent Labels business grew at mid single-digits overall [66]