Avery Dennison beats quarterly revenue estimates on strong product labeling demand
Jan 31 (Reuters) - Avery Dennison beat fourth-quarter revenue estimates on Wednesday, bolstered by strong demand for labeling and packaging products.
Companies around the world ramped up their inventory to meet increased demand during the holidays, benefiting labeling and packaging product makers such as Avery Dennison, CCL Industries and Berry Global Group.
"Volume in both label materials and apparel solutions improved sequentially, continuing to recover from slow market conditions, largely due to inventory destocking," Chief Executive Officer Deon Stander said.
Avery, which provides branding and information labeling for several industries such as apparel, automotive and consumer packaging, forecast full-year adjusted profit to be between $9.00 and $9.50 per share. Excluding items, it posted a profit of $7.90 per share in 2023.
Stander added that he expects "significant growth" in the intelligent labels business this year as apparel demand rebounds and the company accelerates adoption of its smart labels in logistics, food and general retail.
Intelligent Labels are radio frequency identification (RFID) tags that can improve supply chain and inventory management.
Avery's net income rose to $143.1 million, or $1.77 per share, in the quarter ended Dec. 30, from $122.9 million, or $1.51 per share, a year earlier.
On an adjusted basis, the Ohio-based company earned $2.16 per share in the quarter. Analysts were expecting $2.17 per share, according to LSEG data.
Its overall quarterly revenue rose 4% to $2,110.5 million, surpassing analysts' average estimate of $2,096 million. (Reporting by Mehr Bedi in Bengaluru; Editing by Shinjini Ganguli)
