Avery Dennison Corp
For the period ended Mar 29, 2025. Filed Apr 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed Apr 29, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Analysis of Results of Operations for the First Quarter
Income Before Taxes
| Three Months Ended | ||
|---|---|---|
| (In millions) | March 29, 2025 | March 30, 2024 |
| Net sales | $2,148.3 | $2,151.3 |
| Cost of products sold | 1,526.8 | 1,519.1 |
| Gross profit | 621.5 | 632.2 |
| Marketing, general and administrative expense | 347.0 | 365.2 |
| Other expense (income), net | 19.9 | 12.6 |
| Interest expense | 30.9 | 28.6 |
| Other non-operating expense (income), net | (3.3) | (8.6) |
| Income before taxes | $227.0 | $234.4 |
Gross Profit
Gross profit for the first quarter of 2025 decreased from the same period last year due to the net impact of raw material deflation-related price reductions and unfavorable foreign currency translation, partially offset by benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs, and favorable volume/mix.
Marketing, General and Administrative Expense
Marketing, general and administrative expense decreased in the first quarter of 2025 compared to the same period last year primarily due to lower employee-related costs, favorable foreign currency translation and benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, partially offset by growth investments.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | March 29, 2025 | March 30, 2024 |
| Other expense (income), net, by type | ||
| Restructuring charges: | ||
| Severance and related costs, net of reversals | $4.7 | $4.9 |
| Asset impairment and lease cancellation charges | .2 | 1.1 |
| Other items: | ||
| (Gain) loss on venture investments and other | 14.3 | 2.2 |
| Losses from Argentine peso remeasurement and Blue Chip Swap transactions | .7 | 11.3 |
| Outcomes of legal matters and settlements, net | — | (6.9) |
| Other expense (income), net | $19.9 | $12.6 |
Refer to Note 4, “Cost Reduction Actions,” to the unaudited Condensed Consolidated Financial Statements for more information regarding restructuring charges. Refer to Note 10, “Commitments and Contingencies,” to the unaudited Condensed Consolidated Financial Statements for more information regarding the outcomes of legal matters and settlements, net.
Interest Expense
Interest expense increased in the first quarter of 2025 compared to the same period last year primarily due to higher interest related to the €500 million of senior notes we issued in November 2024.
Net Income and Earnings per Share
| Three Months Ended | ||
|---|---|---|
| (In millions, except per share amounts and percentages) | March 29, 2025 | March 30, 2024 |
| Income before taxes | $227.0 | $234.4 |
| Provision for income taxes | 60.7 | 62.0 |
| Net income | $166.3 | $172.4 |
| Per share amounts: | ||
| Net income per common share | $2.10 | $2.14 |
| Net income per common share, assuming dilution | 2.09 | 2.13 |
| Effective tax rate | 26.7% | 26.5% |
Provision for Income Taxes
Our effective tax rate for the three months ended March 29, 2025 was comparable to the same period last year. Refer to Note 6, “Taxes Based on Income,” to the unaudited Condensed Consolidated Financial Statements for more information.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.