Avery Dennison Corp
For the period ended Jun 29, 2024. Filed Jul 30, 2024.
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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.
Jun 29, 2024 · Filed Jul 30, 2024
Extracted filing text, with the paragraph anchors used by the comparison.
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Analysis of Results of Operations for the Second Quarter
Income Before Taxes
| Three Months Ended | ||
|---|---|---|
| (In millions, except percentages) | June 29, 2024 | July 1, 2023 |
| Net sales | $2,235.3 | $2,090.5 |
| Cost of products sold | 1,572.6 | 1,537.1 |
| Gross profit | 662.7 | 553.4 |
| Marketing, general and administrative expense | 373.9 | 319.6 |
| Other expense (income), net | 27.0 | 68.3 |
| Interest expense | 29.2 | 31.9 |
| Other non-operating expense (income), net | (5.8) | (6.6) |
| Income before taxes | $238.4 | $140.2 |
| Gross profit margin | 29.6% | 26.5% |
Gross Profit Margin
Gross profit margin for the second quarter of 2024 increased from the same period last year due to higher volume, benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs, and the net impact of pricing and raw material input costs, partially offset by higher employee-related costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in the second quarter of 2024 compared to the same period last year primarily due to higher employee-related costs and growth investments, partially offset by benefits from productivity initiatives, including savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | June 29, 2024 | July 1, 2023 |
| Other expense (income), net, by type | ||
| Restructuring charges: | ||
| Severance and related costs, net of reversals | $6.3 | $8.8 |
| Asset impairment and lease cancellation charges | .9 | 1.2 |
| Other items: | ||
| (Gain) loss on venture investments | 15.0 | — |
| Losses from Argentine peso remeasurement and Blue Chip Swap transactions | 4.1 | — |
| Outcomes of legal matters and settlements, net | .4 | 53.8 |
| Transaction and related costs | .3 | 4.0 |
| (Gain) loss on sales of assets, net | — | .5 |
| Other expense (income), net | $27.0 | $68.3 |
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 decreased in the second quarter of 2024 compared to the same period last year primarily due to a decrease in commercial paper borrowings.
Net Income and Earnings per Share
| Three Months Ended | ||
|---|---|---|
| (In millions, except per share amounts and percentages) | June 29, 2024 | July 1, 2023 |
| Income before taxes | $238.4 | $140.2 |
| Provision for income taxes | 61.6 | 39.8 |
| Net income | $176.8 | $100.4 |
| Per share amounts: | ||
| Net income per common share | $2.19 | $1.24 |
| Net income per common share, assuming dilution | 2.18 | 1.24 |
| Effective tax rate | 25.8% | 28.4% |
Provision for Income Taxes
Our effective tax rate for the three months ended June 29, 2024 decreased compared to the same period last year primarily due to higher tax incentives in certain foreign jurisdictions and the tax impacts resulting from Blue Chip Swap transactions in Argentina. 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.