US-based global materials science company Avery Dennison has reported net sales of $2.2 billion in the second quarter of fiscal 2024 (Q2 FY24), marking a 7 per cent increase compared to the same period last year. Excluding currency impacts, sales were up 8 per cent on a non-GAAP basis, with organic sales also rising by 7 per cent.

The company reported a remarkable 76 per cent increase in reported EPS, reaching $2.18 for Q2 FY24. The adjusted EPS (non-GAAP) also saw a substantial rise, up 26 per cent to $2.42, Avery Dennison said in a press release.

The materials group reported sales of $1.5 billion, reflecting a 5 per cent increase. On a currency-adjusted and organic basis, sales were up 6 per cent. The reported operating margin for this segment was 14.4 per cent, while the adjusted EBITDA margin (non-GAAP) improved by 220 basis points to 17.9 per cent.

The solutions group experienced a significant 12 per cent increase in reported sales, reaching $689 million. Excluding currency impacts, sales were up 14 per cent, with organic sales growing by 11 per cent. The reported operating margin for this segment was 9.3 per cent, and the adjusted EBITDA margin increased by 100 basis points to 16.8 per cent. Sequentially, the margin was up 70 basis points, with the company expecting continued margin improvements in the second half of FY24.

“We delivered a strong second quarter, with significant earnings growth, driven by higher volume and productivity gains,” said Deon Stander, president and CEO. “Both our materials and solutions groups delivered strong top- and bottom-line growth.

Fibre2Fashion News Desk (DP)