Avery Dennison(AVY) - 2025 Q1 - Quarterly Results

Financial Performance - Reported EPS for Q1 2025 was $2.09, with adjusted EPS of$ 2.30, reflecting a 0.4% increase and approximately 4% increase excluding currency effects[5]. - Net sales for Q1 2025 totaled $2.1 billion, a slight decrease of 0.1%, while organic sales increased by 2.3%[5]. - Net income for the three months ended March 29, 2025, was$ 166.3 million, down from $172.4 million in the same period last year, representing a decrease of 6.0%[29]. - Adjusted net income for the first quarter of 2025 was$ 182.6 million, down from $185.1 million in the first quarter of 2024, a decrease of 0.7%[49]. - The company’s adjusted net income per common share for the first quarter of 2025 was$ 2.30, compared to $2.29 in the same period last year, reflecting a slight increase of 0.4%[53]. Sales and Revenue Breakdown - The Materials Group reported sales of$ 1.5 billion, down 1.1%, but organic sales increased by 1.2%[8]. - The Solutions Group achieved reported sales of $668 million, up 2.0%, with organic sales growth of 4.9%[8]. - Total net sales for the first quarter of 2025 were$ 2,148.3 million, a slight decrease of 0.2% compared to $2,151.3 million in the first quarter of 2024[57]. - The reported net sales change for the total company in Q1 2025 was a slight decline of 0.1%, with the Materials Group experiencing a decrease of 1.1% and the Solutions Group showing an increase of 2.0%[63]. - Organic sales change (non-GAAP) for the total company in Q1 2025 was 2.3%, with the Materials Group at 1.2% and the Solutions Group at 4.9%[63]. Operating Performance - Adjusted operating income for the first quarter of 2025 was$ 274.5 million, compared to $273.7 million in the first quarter of 2024, indicating a slight increase of 0.3%[48]. - Adjusted operating income for the Materials Group in Q1 2025 was$ 230.3 million, down from $240.5 million in Q1 2024, reflecting a decrease of 4.9%[58]. - Adjusted EBITDA for the first quarter of 2025 was$ 352.4 million, up from $351.0 million in the first quarter of 2024, reflecting a growth of 0.4%[48]. - Adjusted EBITDA for the Solutions Group increased to$ 114.6 million in Q1 2025, compared to $105.4 million in Q1 2024, representing an increase of 10.8%[59]. - Adjusted EBITDA for the total company in Q1 2025 was$ 352.4 million, a decrease from $367.4 million in Q2 2024[61]. Shareholder Returns and Financial Position - The company returned$ 331 million to shareholders through share repurchases and dividends, repurchasing 1.4 million shares at a cost of $262 million[9]. - The net debt to adjusted EBITDA ratio was 2.3x at the end of Q1 2025, indicating a strong balance sheet[10]. - Total debt as of Q1 2025 was$ 3,459.1 million, with net debt standing at $3,263.2 million after accounting for cash and cash equivalents of$ 195.9 million[61]. - The net debt to adjusted EBITDA ratio for the last twelve months (LTM) was 2.3, indicating a stable leverage position[61]. Guidance and Future Outlook - The company expects Q2 2025 reported EPS guidance to be between $2.25 and$ 2.45, with adjusted EPS guidance of $2.30 to$ 2.50[5][13]. - Approximately $14 million in pre-tax savings were realized from restructuring actions during Q1 2025[12]. - The company plans to continue focusing on market expansion and new product development to drive future growth[60]. Tax and Cash Flow - The effective tax rate for Q1 2025 was reported at 26.7%, with an adjusted tax rate of 26.0%[11]. - Cash and cash equivalents at the end of the period were$ 195.9 million, an increase from $185.7 million at the end of the previous year[30]. - The company reported a net cash used in operating activities of$ (16.3) million for the first quarter of 2025, compared to $119.8 million provided in the same period of 2024[55]. Current Assets and Liabilities - Total current assets increased to$ 3,030.4 million in 2025 from $2,886.8 million in 2024, reflecting a growth of 4.9%[27]. - Total current liabilities decreased to$ 2,952.8 million in 2025 from $3,308.2 million in 2024, a reduction of 10.7%[27].