Avery Dennison (AVY) Q4 2024 earnings summary

Executive summary

• Achieved 19% adjusted EPS growth in 2024, reaching $9.43, with net sales of $8.8B, organic sales up 4.5%, and margin expansion driven by high-value categories now representing nearly half the portfolio.

• Both Materials and Solutions Groups delivered strong top and bottom-line results, aided by productivity, innovation, and recovery from inventory destocking.

• Returned $525 million to shareholders via dividends and share repurchases, maintaining a net debt to adjusted EBITDA ratio of 2.0.

• Strategic focus remains on GDP-plus growth, margin expansion, and top quartile returns on capital.

Financial highlights

• FY24 adjusted EPS was $9.43, up 19% year-over-year; Q4 adjusted EPS was $2.38, up 10% year-over-year.

• FY24 net sales were $8.8B, up 4.7% reported and 5.1% ex-currency; organic sales up 4.5%.

• Adjusted EBITDA margin reached 16.4%, up 130 bps; adjusted operating margin was 12.8%, up 130 bps.

• Adjusted free cash flow for FY24 was $700 million, with 100% conversion.

• Q4 net sales were $2.2B, up 3.6%; Q4 adjusted EBITDA margin was 16.4%.

Outlook and guidance

• 2025 adjusted EPS guidance is $9.80–$10.20, up 7–12% ex-currency, with 3–4% organic sales growth and mid-single digit volume growth.

• Intelligent Labels expected to grow 10–15% in 2025, contributing 1–1.5 points to total company growth.

• Restructuring savings of ~$40 million targeted for 2025.

• Targeting ~100% adjusted free cash flow conversion and fixed/IT capital spend of ~$250M.

• Expect earnings growth to accelerate through 2025 as high-value rollouts and productivity actions take effect.