Avery Dennison Corp
For the period ended Mar 31, 2026. Filed May 5, 2026.
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.
Mar 31, 2026 · Filed May 5, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Analysis of Results of Operations for the First Quarter
Income Before Taxes
| Three Months Ended | ||
|---|---|---|
| (In millions) | March 31, 2026 | March 29, 2025 |
| Net sales | $2,298.5 | $2,148.3 |
| Cost of products sold | 1,633.7 | 1,526.8 |
| Gross profit | 664.8 | 621.5 |
| Marketing, general and administrative expense | 375.1 | 347.0 |
| Other expense (income), net | 17.8 | 19.9 |
| Interest expense | 35.6 | 30.9 |
| Other non-operating expense (income), net | (4.1) | (3.3) |
| Income before taxes | $240.4 | $227.0 |
Gross Profit
Gross profit for the first quarter of 2026 increased from the same period last year due to higher volume, favorable foreign currency translation and the net benefit of pricing and raw material costs, including material re-engineering and benefits from productivity initiatives, including savings from restructuring actions, net of transition costs, partially offset by unfavorable mix and higher employee-related costs.
Marketing, General and Administrative Expense
Marketing, general and administrative expense increased in the first quarter of 2026 compared to the same period last year primarily due to unfavorable foreign currency translation, higher employee-related costs and growth investments, partially offset by benefits from productivity initiatives and savings from restructuring actions, net of transition costs.
Other Expense (Income), Net
| Three Months Ended | ||
|---|---|---|
| (In millions) | March 31, 2026 | March 29, 2025 |
| Other expense (income), net, by type | ||
| Restructuring charges, net of reversals: | ||
| Severance and related costs, net of reversals | $14.5 | $4.7 |
| Asset impairment and lease cancellation charges | 1.3 | .2 |
| (Gain) loss on venture and other investments | 1.3 | 14.3 |
| Loss from Argentine peso remeasurement | .5 | .7 |
| Other items, net | .2 | — |
| Other expense (income), net | $17.8 | $19.9 |
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 first quarter of 2026 compared to the same period last year primarily due to the €500 million of senior notes we issued in September 2025.
Net Income and Earnings per Share
| Three Months Ended | ||
|---|---|---|
| (In millions, except per share amounts and percentages) | March 31, 2026 | March 29, 2025 |
| Income before taxes | $240.4 | $227.0 |
| Provision for income taxes | 72.3 | 60.7 |
| Net income | $168.1 | $166.3 |
| Per share amounts: | ||
| Net income per common share | $2.19 | $2.10 |
| Net income per common share, assuming dilution | 2.18 | 2.09 |
| Effective tax rate | 30.1% | 26.7% |
Provision for Income Taxes
Our effective tax rate for the three months ended March 31, 2026 increased compared to the same period last year primarily due to a higher net discrete charge from increases in tax reserves related to a court ruling impacting tax group requirements in a foreign jurisdiction. 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.