Avery Dennison Corp
For the period ended Jun 28, 2025. Filed Jul 29, 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.
Jun 28, 2025 · Filed Jul 29, 2025
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) | June 28, 2025 | June 29, 2024 |
| Net sales | $2,220.5 | $2,235.3 |
| Cost of products sold | 1,581.4 | 1,572.6 |
| Gross profit | 639.1 | 662.7 |
| Marketing, general and administrative expense | 352.4 | 373.9 |
| Other expense (income), net | .5 | 27.0 |
| Interest expense | 34.0 | 29.2 |
| Other non-operating expense (income), net | (3.3) | (5.8) |
| Income before taxes | $255.5 | $238.4 |
Gross Profit
Gross profit for the second quarter of 2025 decreased from the same period last year due to the net impact of raw material deflation-related price reductions and higher employee-related costs, partially offset by higher volume/mix and benefits from productivity initiatives, including material re-engineering and savings from restructuring actions, net of transition costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense decreased in the second quarter of 2025 compared to the same period last year primarily due to lower employee-related costs and benefits from productivity initiatives, including savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | June 28, 2025 | June 29, 2024 |
| Other expense (income), net, by type | ||
| Restructuring charges, net of reversals: | ||
| Severance and related costs, net of reversals | $7.9 | $6.3 |
| Asset impairment and lease cancellation charges | .1 | .9 |
| Other items: | ||
| (Gain) loss on venture and other investments | 1.8 | 15.0 |
| Losses from Argentine peso remeasurement and Blue Chip Swap transactions | 1.8 | 4.1 |
| (Gain) loss on sales of assets | (11.1) | — |
| Outcomes of legal matters and settlements, net | — | .4 |
| Transaction and related costs | — | .3 |
| Other expense (income), net | $.5 | $27.0 |
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 second quarter of 2025 compared to the same period last year primarily due to higher interest related to the €500 million of senior notes we issued in November 2024 and an increase in commercial paper borrowings.
Net Income and Earnings per Share
| Three Months Ended | ||
|---|---|---|
| (In millions, except per share amounts and percentages) | June 28, 2025 | June 29, 2024 |
| Income before taxes | $255.5 | $238.4 |
| Provision for income taxes | 66.5 | 61.6 |
| Net income | $189.0 | $176.8 |
| Per share amounts: | ||
| Net income per common share | $2.42 | $2.19 |
| Net income per common share, assuming dilution | 2.41 | 2.18 |
| Effective tax rate | 26.0% | 25.8% |
Provision for Income Taxes
Our effective tax rate for the three months ended June 28, 2025 was comparable to the same period last year. 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.