Avery Dennison(US:AVY)2024-02-20 16:00Financial Performance - In 2023, Avery Dennison's total net sales were comprised of approximately 69% from the Materials Group and 31% from the Solutions Group[11]. - International operations accounted for approximately 69% of total net sales, with over 200 manufacturing and distribution facilities in more than 50 countries[11]. - Approximately 40% of net sales originated from emerging markets, with 83% of employees located outside the U.S.[19]. - The company experienced incremental savings from restructuring actions of approximately $69 million in fiscal year 2023, following a restructuring expenditure of $79 million[39]. - The company invested $285.1 million in capital expenditures in 2023, including fixed assets and information technology[42]. - The company anticipates potential risks from global economic conditions, competitive actions, and fluctuations in raw material costs[10]. - 2023年，外汇波动导致公司净销售减少约5800万美元[32]. Acquisitions and Investments - The company made acquisitions in 2023 totaling approximately $231 million, including Silver Crystal Group, Lion Brothers, and Thermopatch[17]. - The company acquired Silver Crystal, Lion Brothers, and Thermopatch in 2023 for an aggregate purchase consideration of approximately $231 million[37]. Innovation and Research - The company focuses on innovation in materials science, with research directed towards RFID, sustainable products, and advanced technologies[15][16]. - In 2023, the company expensed $135.8 million on research and development efforts aimed at developing new products and improving product performance[41]. - The Solutions Group leverages RFID technology to improve supply chain transparency and consumer experiences across various industries[14]. - The company has established a strategic innovation platform focused on material circularity and waste reduction to develop sustainable products[37]. Employee and Labor Relations - 超过98%的员工在2023年获得的薪酬高于适用的法定最低工资[22]. - 2023年，员工参与度调查使用了更先进的平台，提供实时结果和改进的分析[23]. - 公司在2023年继续推进多样性、公平和包容性战略，增加了员工参与度调查中的相关问题数量[25]. - Competition for talent has increased, and recent key management changes could impact the company's strategic planning and execution[50]. - The company is exposed to risks related to labor disputes and work stoppages, which could significantly affect its ability to deliver products and services[50]. Financial Risks and Liabilities - As of December 30, 2023, the company had approximately $3.24 billion in debt, which could impact its ability to obtain financing and increase borrowing costs[51]. - The average variable-rate borrowings in 2023 were approximately $608 million, making the company vulnerable to fluctuations in interest rates[52]. - The U.S. Federal Reserve's benchmark interest rate increased to between 5.25% and 5.50% as of December 30, 2023, up from 4.25% to 4.50% in 2022, potentially raising the company's borrowing costs[52]. - The company may experience reduced cash flows and income due to difficulties in collecting accounts receivable from customers facing financial challenges[42]. - The company is exposed to risks from competitive conditions, technological developments, and changes in customer preferences that could adversely affect market demand[37]. - The contingent liability for ongoing litigation with ADASA Inc. regarding patent infringement is estimated at $82.9 million as of December 30, 2023[55]. Environmental and Compliance - The company is required to comply with various environmental, health, and safety laws, which impose significant and increasing compliance costs[56]. - Changes in tax rates and regulations could materially impact the company's effective tax rate and overall business operations[46]. - The company is subject to regular examinations of its income tax returns, which could result in adjustments that affect its effective tax rate[47]. - The company has deferred tax assets that may not be realizable under certain circumstances, potentially increasing its effective tax rate[48]. - The company is subject to legal and regulatory risks that could materially adversely affect its financial results, including potential penalties for non-compliance with anti-corruption laws[56]. Shareholder Returns - As of December 30, 2023, the company repurchased 0.8 million shares of common stock at an aggregate cost of $137.5 million, with $592.8 million remaining authorized for repurchase[54]. - The company increased its quarterly dividend rate by approximately 8% in April 2023, although future dividends are subject to market conditions and may be suspended or discontinued[54]. Operational Efficiency - The Materials Group provides pressure-sensitive label materials and performance tapes, enhancing operational efficiency and sustainability[12]. - The company faced supply chain disruptions and increased costs due to inflationary pressures on raw materials, labor, and energy[35]. - The company implemented targeted price increases in its Materials Group segment in 2021 and 2022 to address raw material inflation, which began moderating in 2023[35]. Cybersecurity and Technology - The company faces risks related to cybersecurity, including potential breaches that could compromise sensitive information and adversely affect its business and reputation[44]. - The company has implemented measures to mitigate risks associated with system and network disruptions, but significant disruptions could lead to material losses[44].