Avery Dennison Corp. recently announced preliminary, unaudited results for its third quarter ended October 2, 2021. Net sales increased 19.8% compared to the prior-year third quarter, to almost $2.1 billion.
“We delivered another strong quarter,” said Mitch Butier, chairman, president, and CEO. “Both LGM and RBIS delivered impressive top and bottom-line growth, with continued momentum in Intelligent Labels. This strong performance comes during a challenging period given the ongoing global health crisis, as supply chains remain tight and significant inflationary pressures continue to build.
“Given our performance in the third quarter, we raised our outlook for the full year as we continue to deliver significant earnings growth. We are also pleased that the acquisition of Vestcom, a business that further expands our position in high value categories in RBIS and has the potential to further advance our Intelligent Labels strategy, closed in the quarter. Once again, I want to thank our entire team for their tireless efforts to keep one another safe while delivering for all our stakeholders.”
In the third quarter, Avery Dennison reports that uncertainty surrounding the global health crisis remained elevated as parts of the world experienced a surge in COVID-19 cases, particularly in South Asia. The greatest impact of the increase in COVID-19 cases to the company was in Vietnam, particularly in Retail Branding and Information Solutions (RBIS), which was significantly constrained for the majority of the quarter. While certain manufacturing sites were operating well below full capacity, the company leveraged its global scale to minimize disruptions to customers. All manufacturing locations are now largely operational.
According to Avery Dennison, it is actively managing through a dynamic supply and demand environment. Demand across the majority of businesses and regions remains very strong, while raw materials, freight, and labor availability continue to be constrained. The company continues to leverage its global scale and work closely with customers and suppliers to minimize disruptions. Inflation remains persistent, and additional pricing and material re-engineering actions are being implemented to offset higher costs.
Additional details are available at www.averydennison.com.