Avery Dennison Corp
For the period ended Sep 27, 2025. Filed Oct 28, 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.
Sep 27, 2025 · Filed Oct 28, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Analysis of Results of Operations for the Third Quarter
Income Before Taxes
| Three Months Ended | ||
|---|---|---|
| (In millions) | September 27, 2025 | September 28, 2024 |
| Net sales | $2,215.5 | $2,183.4 |
| Cost of products sold | 1,580.5 | 1,556.8 |
| Gross profit | 635.0 | 626.6 |
| Marketing, general and administrative expense | 353.9 | 346.9 |
| Other expense (income), net | 16.7 | 15.3 |
| Interest expense | 33.3 | 30.0 |
| Other non-operating expense (income), net | (3.7) | (4.9) |
| Income before taxes | $234.8 | $239.3 |
Gross Profit
Gross profit for the third quarter of 2025 increased from the same period last year due to higher volume/mix and benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs, partially offset by the net impact of raw material deflation-related price reductions and higher employee-related costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in the third quarter of 2025 compared to the same period last year primarily due to growth investments and higher employee-related costs, partially offset by benefits from productivity initiatives and savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | September 27, 2025 | September 28, 2024 |
| Other expense (income), net, by type | ||
| Restructuring charges, net of reversals: | ||
| Severance and related costs, net of reversals | $7.5 | $11.0 |
| Asset impairment and lease cancellation charges | 2.3 | 1.4 |
| Other items: | ||
| Outcomes of legal matters and settlements, net | 4.7 | — |
| Transaction and related costs | 2.0 | — |
| Losses from Argentine peso remeasurement and Blue Chip Swap transactions | 1.9 | .4 |
| (Gain) loss on venture and other investments | (1.3) | 2.5 |
| (Gain) loss on sales of assets | (.4) | — |
| Other expense (income), net | $16.7 | $15.3 |
Refer to Note 4, “Cost Reduction Actions,” to the unaudited Condensed Consolidated Financial Statements for more information regarding restructuring charges.
Interest Expense
Interest expense increased in the third quarter of 2025 compared to the same period last year primarily due 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) | September 27, 2025 | September 28, 2024 |
| Income before taxes | $234.8 | $239.3 |
| Provision for income taxes | 68.5 | 57.6 |
| Net income | $166.3 | $181.7 |
| Per share amounts: | ||
| Net income per common share | $2.13 | $2.26 |
| Net income per common share, assuming dilution | 2.13 | 2.25 |
| Effective tax rate | 29.2% | 24.1% |
Provision for Income Taxes
Our effective tax rate for the three months ended September 27, 2025 increased compared to the same period last year primarily due to lower discrete tax benefits and a higher net charge related to the U.S. tax on foreign earnings. Refer to Note 6, “Taxes Based on Income,” to the unaudited Condensed Consolidated Financial Statements for more information.
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