Avery Dennison Corp. recently announced preliminary, unaudited results for its fourth quarter and fiscal year ended January 2, 2021, and provided an update related to the impact of the COVID-19 pandemic on the company. Net sales in the fourth quarter were $1.99 billion, up 12.3%. The extra week in 2020 increased sales 4.9%. Sales for the quarter were up 5.2% excluding currency and up 3.2% on an organic basis.
Fiscal year 2020 net sales declined 1.4% to $6.97 billion. Excluding currency, sales increased 1.7% for the year; organic sales rose 3.4%.
“We delivered another year of strong earnings growth in 2020,” said Mitch Butier, chairman, president, and CEO. “In the face of an unprecedented series of crises, our team demonstrated remarkable preparedness and incredible agility in ensuring the health and welfare of our employees, delivering for our customers, supporting our communities, and minimizing the impact of the recession for our shareholders.
“We were able to protect, even expand, margins, despite pandemic-related market declines particularly in the second quarter. Underlying label demand in LGM, our largest business, remained strong throughout the downturn, while volume trends improved sequentially in RBIS and IHM in the second half. RFID grew significantly due to continued strong organic growth and the acquisition of Smartrac.
“As we enter 2021, we remain confident in our ability to continue to make progress toward our long-term goals, including consistent delivery of GDP+ growth and top-quartile return on capital. We continue to prove our resilience across business cycles. I want to thank our entire team for their ongoing efforts to keep one another safe while continuing to deliver for all our stakeholders during this challenging period.”
Avery Dennison reports that the safety and well-being of employees has been and will continue to be the company’s top priority during this global health crisis. The company has taken steps to both ensure employee safety, as well as help mitigate the financial impact to employees resulting from mandated facility closures and necessary layoffs in early 2020. In addition, the company recently provided one-time payments to frontline workers to express gratitude for their effort and dedication throughout this difficult time. Additionally, the company has increased community engagement during the crisis, including electing to make a $10 million incremental contribution for charitable causes in the fourth quarter.
Throughout the pandemic, the company has continued to work closely with customers to continue to deliver industry-leading products and services. Operationally, all manufacturing sites remained open during the second half of the year. Throughout the health crisis, disruptions to the company’s supply chain have been negligible.
To learn more about Avery Dennison, visit www.averydennison.com.