Avery Dennison (AVY) Investor Day 2024 summary

Strategic direction and growth catalysts

• Focus on leveraging global scale, competitive advantages, and intelligent label capabilities to expand addressable markets and unlock new growth, both organically and through acquisitions.

• High-value categories now comprise a larger share of the portfolio, reaching ~44% of sales, up 10 points since 2019, with multi-decade growth opportunities in Intelligent Labels.

• Mega trends shaping strategy include digitization, sustainability, and personalization, with intelligent labels and digital identification at the core of future offerings.

• Strategies include outsized growth in high-value categories, profitable base business growth, and leadership at the intersection of physical and digital.

• Committed to environmental and social responsibility, with clear 2030 sustainability goals and ongoing progress.

Business segment performance and innovation

• Materials Group delivered $5.8B in 2023 sales, 15.8% adj. EBITDA margin, and leads in self-adhesive labels with strong growth in emerging markets and high-value categories.

• Solutions Group achieved $2.6B in 2023 sales, 16.6% adj. EBITDA margin, with high-value categories now 60% of revenue and strong growth in intelligent labels, Vestcom, and Embelex.

• Intelligent Labels business targets ~15%+ organic sales growth, expanding into QSR, grocery, beauty, healthcare, and automotive, with proven adoption in apparel and growing in food and logistics.

• Innovation in sustainable materials, such as CleanFlake adhesives, supports recycling, regulatory compliance, and new opportunities.

• Data management and digital platforms like atma.io are integral to value creation, supporting traceability and lifecycle management.

Financial guidance and targets

• Updated 2024 adjusted EPS guidance is $9.30–$9.50, with reported sales growth of 4.5–5.5% and organic sales growth of 4.0–5.0%.

• Long-term targets include 5%+ annual sales growth, 17%+ EBITDA margin by 2028, and double-digit adjusted EPS growth, driven by high-value categories and intelligent labels.

• EVA has grown fourfold since 2014, correlating with mid-teens total shareholder return and 313% cumulative TSR since 2016.

• ~$8B capital available over five years, with 50–55% allocated to buybacks/M&A, 20% to dividends, and a focus on maintaining a strong balance sheet.

• Capital allocation remains disciplined, balancing reinvestment, dividends, share repurchases, and M&A to support growth and shareholder returns.