On October 21, Avery Dennison Corporation announced preliminary, unaudited results for its third quarter ended September 26, 2020 and provided an update related to the impact of the COVID-19 pandemic on the company. NonGAAP financial measures referenced in this document are reconciled to GAAP in the attached tables. Unless otherwise indicated, comparisons are to the same period in the prior year.

Highlights from the results include:

● 3Q20 Reported EPS of $1.79, up 5%

    ○ Adjusted EPS (non-GAAP) of $1.91, up 15%

● 3Q20 Net sales declined 1.8% to $1.73 billion

    ○ Sales change ex. currency (non-GAAP) of (1.3%)

    ○ Organic sales change (non-GAAP) of (3.6%)

● Strong balance sheet (net debt to adj. EBITDA ratio of 1.9) with ample liquidity

● Free cash flow proving resilient… targeting more than $500 mil. for the year

● Increasing distributions to shareholders: raised dividend by 7% and resumed share repurchase late in the third quarter

“Revenue came in significantly better than we anticipated at the start of the quarter, which, combined with our cost reduction actions, enabled us to deliver strong earnings growth and free cash flow,” said Mitch Butier, chairman, president and CEO. “The extraordinary agility demonstrated by our team this year is driving solid performance on all fronts, ensuring the health and well-being of our employees, delivering for our customers, supporting our communities, and minimizing the impact of the recession for our shareholders.

“All three of our operating segments expanded their adjusted operating margins compared to last year, despite lower sales, as demand improved sequentially,” added Butier. “In particular, LGM delivered sequential improvement in sales across all regions except Europe, with faster than-expected improvement in high value categories, such as graphics. RBIS likewise improved faster-than-expected, reflecting strong growth in both RFID and external embellishments, as well as a quicker rebound in the base.

“Once again, we are proving our resilience across business cycles,” said Butier. “I want to thank our entire team for their ongoing efforts to keep one another safe while delivering for our customers during this challenging period.”

Click here for the full release.

Source: Avery Dennison