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22-07-2025
- Business
- Business Wire
Avery Dennison Announces Second Quarter 2025 Results
MENTOR, Ohio--(BUSINESS WIRE)--Avery Dennison Corporation (NYSE: AVY), a leading global materials science and digital identification solutions company, today announced preliminary, unaudited results for its second quarter ended June 28, 2025. Non-GAAP financial measures referenced in this release are reconciled from GAAP in the attached financial schedules. Unless otherwise indicated, comparisons are to the same period in the prior year. 'We delivered a solid second quarter, with earnings above expectations in a dynamic environment, reflecting the strength of our overall portfolio,' said Deon Stander, president and CEO. 'While trade policy changes led to lower sourcing demand for apparel and general retail categories in the quarter, growth in our high-value categories and productivity in the base business offset the impact from tariffs. 'The broader impact of trade policy changes is unclear. We are prepared for various scenarios and will continue to leverage our proven playbook to safeguard earnings, while driving key initiatives to deliver strong profitable growth over the cycle,' added Stander. 'Once again, I extend my gratitude to our agile, engaged, and talented team for their unwavering focus on excellence and dedication to addressing the current challenges at hand.' Second Quarter 2025 Results by Segment Materials Group Reported sales increased 0.2% to $1.6 billion. Sales down 1.0% on organic basis High-value categories, including Intelligent Labels, up low single digits in total; base categories down low single digits Label Materials down low single digits Graphics and Reflectives up high single digits; Performance Tapes and Medical up low single digits Reported operating margin of 16.1% Adjusted operating margin (non-GAAP) of 15.6%, down 20 basis points Adjusted EBITDA margin (non-GAAP) of 17.8%, down 10 basis points, as the benefits from productivity and higher volume/mix were offset by the net impact of pricing and raw material inputs costs. Solutions Group Reported sales decreased 2.6% to $670 million. Sales down 0.8% on organic basis Sales in high-value categories, including Intelligent Labels, up low single digits High-value categories, excluding the estimated indirect impact of tariffs, up high single digits Intelligent Labels comparable to prior year; Vestcom up approximately 10%; Embelex down high single digits Sales in base categories down mid-single digits Overall apparel categories down mid-single digits Reported operating margin of 8.9% Adjusted operating margin of 10.0%, down 10 basis points Adjusted EBITDA margin of 17.1%, up 30 basis points, as benefits from productivity were partially offset by lower volume in apparel and growth investments. Other Balance Sheet and Capital Deployment During the first half of 2025, the company returned $503 million in cash to shareholders through a combination of share repurchases and dividends. The company repurchased 2.0 million shares at an aggregate cost of $360 million in the first half of the year. Net of dilution from long-term incentive awards, the company's share count was down 2.8 million compared to the same time last year. In the second quarter, the company increased its quarterly dividend to $0.94 per share, representing an increase of approximately 7% over the previous dividend rate. The company continues to deploy capital in a disciplined manner, executing its long-term capital allocation strategy. The company's balance sheet remains strong. Net debt to adjusted EBITDA (non-GAAP) was 2.3x at the end of the second quarter. Income Taxes The company's reported effective tax rate was 26.0% for the second quarter. The adjusted tax rate (non-GAAP) for the quarter was also 26.0%. Cost Reduction Actions In the first half of the year, the company realized approximately $30 million in pre-tax savings from restructuring, net of transition costs, and incurred approximately $13 million in pre-tax restructuring charges. Guidance In its supplemental presentation materials, 'Second Quarter 2025 Financial Review and Analysis,' the company provides a list of factors that it believes will contribute to its financial results. Based on the factors listed and other assumptions, the company expects third quarter 2025 reported earnings per share of $2.14 to $2.30. Excluding an estimated ~$0.10 per share impact of restructuring charges and other items, the company expects third quarter 2025 adjusted earnings per share of $2.24 to $2.40. For more details on the company's results, see the summary tables accompanying this news release, as well as the supplemental presentation materials, 'Second Quarter 2025 Financial Review and Analysis,' posted on the company's website at and furnished to the SEC on Form 8-K. Throughout this release and the supplemental presentation materials, amounts on a per share basis reflect fully diluted shares outstanding. About Avery Dennison Avery Dennison Corporation (NYSE: AVY) is a global materials science and digital identification solutions company. We are Making Possible™ products and solutions that help advance the industries we serve, providing branding and information solutions that optimize labor and supply chain efficiency, reduce waste, advance sustainability, circularity and transparency, and better connect brands and consumers. We design and develop labeling and functional materials, radio-frequency identification (RFID) inlays and tags, software applications that connect the physical and digital, and offerings that enhance branded packaging and carry or display information that improves the customer experience. Serving industries worldwide — including home and personal care, apparel, general retail, e-commerce, logistics, food and grocery, pharmaceuticals and automotive — we employ approximately 35,000 employees in more than 50 countries. Our reported sales in 2024 were $8.8 billion. Learn more at 'Safe Harbor' Statement under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this document are "forward-looking statements" intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements, and financial or other business targets, are subject to certain risks and uncertainties. We believe that the most significant risk factors that could affect our financial performance in the near term include: (i) the impact on underlying demand for our products from global economic conditions, tariffs, geopolitical uncertainty, and changes in environmental standards, regulations and preferences; (ii) competitors' actions, including pricing, expansion in key markets, and product offerings; (iii) the cost and availability of raw materials; (iv) the degree to which higher costs can be offset with productivity measures and/or passed on to customers through price increases, without a significant loss of volume; (v) foreign currency fluctuations; and (vi) the execution and integration of acquisitions. Actual results and trends may differ materially from historical or anticipated results depending on a variety of factors, including but not limited to, risks and uncertainties related to the following: International Operations – worldwide economic, social, geopolitical and market conditions; changes in geopolitical conditions, including those related to trade relations and tariffs, China, the Russia-Ukraine war, the Israel-Hamas war and related hostilities in the Middle East; fluctuations in foreign currency exchange rates; and other risks associated with international operations, including in emerging markets Our Business – fluctuations in demand affecting sales to customers; fluctuations in the cost and availability of raw materials and energy; changes in our markets due to competitive conditions, technological developments, laws and regulations, and customer preferences; environmental regulations and sustainability trends; the impact of competitive products and pricing; the execution and integration of acquisitions; selling prices; customer and supplier concentrations or consolidations; the financial condition of distributors; outsourced manufacturers; product and service quality claims; restructuring and other cost reduction actions; our ability to generate sustained productivity improvement and our ability to achieve and sustain targeted cost reductions; the timely development and market acceptance of new products, including sustainable or sustainably-sourced products; our investment in development activities and new production facilities; the collection of receivables from customers; and our sustainability and governance practices Information Technology – disruptions in information technology systems; cybersecurity events or other security breaches; and successful installation of new or upgraded information technology systems Income Taxes – fluctuations in tax rates; changes in tax laws and regulations, and uncertainties associated with interpretations of such laws and regulations; outcome of tax audits; and the realization of deferred tax assets Human Capital – recruitment and retention of employees and collective labor arrangements Our Indebtedness – our ability to obtain adequate financing arrangements and maintain access to capital; credit rating risks; fluctuations in interest rates; and compliance with our debt covenants Ownership of Our Stock – potential significant variability of our stock price and amounts of future dividends and share repurchases Legal and Regulatory Matters – protection and infringement of our intellectual property; the impact of legal and regulatory proceedings, including with respect to compliance and anti-corruption, environmental, health and safety, and trade compliance Other Financial Matters – fluctuations in pension costs and goodwill impairment For a more detailed discussion of these factors, see 'Risk Factors' and 'Management's Discussion and Analysis of Financial Condition and Results of Operations' in our 2024 Form 10-K, filed with the Securities and Exchange Commission on February 26, 2025, and subsequent quarterly reports on Form 10-Q. The forward-looking statements included in this document are made only as of the date of this document, and we undertake no obligation to update these statements to reflect subsequent events or circumstances, other than as may be required by law. Second Quarter Financial Summary - Preliminary, unaudited (in millions, except % and per share amounts) 2Q 2Q % Sales Change vs. PY Net sales, by segment: Materials Group $ 1,550.2 $ 1,546.8 0.2 % (1.0 %) (1.0 %) Solutions Group 670.3 688.5 (2.6 %) (0.8 %) (0.8 %) Total net sales $ 2,220.5 $ 2,235.3 (0.7 %) (1.0 %) (1.0 %) % of Sales 2Q 2Q % 2Q 2Q 2025 2024 Change 2025 2024 Segment adjusted operating income and margins: Materials Group $ 242.5 $ 244.5 15.6 % 15.8 % Solutions Group 67.0 69.8 10.0 % 10.1 % Corporate expense (22.8 ) (25.5 ) Adjusted operating income and margins (non-GAAP) $ 286.7 $ 288.8 (0.7 %) 12.9 % 12.9 % Segment adjusted EBITDA and margins: Materials Group $ 275.5 $ 277.3 17.8 % 17.9 % Solutions Group 114.8 115.6 17.1 % 16.8 % Corporate expense (22.8 ) (25.5 ) Adjusted EBITDA and margins (non-GAAP) $ 367.5 $ 367.4 --- 16.6 % 16.4 % Net income as reported $ 189.0 $ 176.8 6.9 % 8.5 % 7.9 % Adjusted net income (non-GAAP) $ 189.5 $ 196.0 (3.3 %) 8.5 % 8.8 % Net income per common share, assuming dilution as reported $ 2.41 $ 2.18 10.6 % Adjusted net income per common share, assuming dilution (non-GAAP) $ 2.42 $ 2.42 --- Adjusted free cash flow (non-GAAP) $ 188.9 $ 142.5 YTD Adjusted free cash flow (non-GAAP) $ 135.8 $ 200.6 See accompanying schedules A-4 to A-8 for reconciliations of non-GAAP financial measures from GAAP. Expand A-1 AVERY DENNISON CORPORATION (In millions, except per share amounts) (UNAUDITED) Three Months Ended Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Net sales $ 2,220.5 $ 2,235.3 $ 4,368.8 $ 4,386.6 Cost of products sold 1,581.4 1,572.6 3,108.2 3,091.7 Gross profit 639.1 662.7 1,260.6 1,294.9 Marketing, general and administrative expense 352.4 373.9 699.4 739.1 Other expense (income), net 0.5 27.0 20.4 39.6 Interest expense 34.0 29.2 64.9 57.8 Other non-operating expense (income), net (3.3 ) (5.8 ) (6.6 ) (14.4 ) Income before taxes 255.5 238.4 482.5 472.8 Provision for income taxes 66.5 61.6 127.2 123.6 Net income $ 189.0 $ 176.8 $ 355.3 $ 349.2 Per share amounts: Net income per common share, assuming dilution $ 2.41 $ 2.18 $ 4.50 $ 4.31 Weighted average number of common shares outstanding, assuming dilution 78.3 81.0 78.9 81.0 Expand A-2 AVERY DENNISON CORPORATION PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (UNAUDITED) ASSETS Jun. 28, 2025 Jun. 29, 2024 Current assets: Cash and cash equivalents $ 215.9 $ 208.8 Trade accounts receivable, net 1,626.5 1,528.6 Inventories 1,026.9 979.9 Other current assets 314.5 250.5 Total current assets 3,183.8 2,967.8 Property, plant and equipment, net 1,604.2 1,590.0 Goodwill and other intangibles resulting from business acquisitions, net 2,744.6 2,790.7 Deferred tax assets 131.6 113.0 Other assets 904.0 836.7 Total assets $ 8,568.2 $ 8,298.2 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Short-term borrowings and current portion of long-term debt and finance leases $ 922.0 $ 1,172.3 Accounts payable 1,307.5 1,313.4 Other current liabilities 832.6 814.5 Total current liabilities 3,062.1 3,300.2 Long-term debt and finance leases 2,628.2 2,046.5 Other long-term liabilities 676.3 664.4 Shareholders' equity: Common stock 124.1 124.1 Capital in excess of par value 821.9 833.1 Retained earnings 5,399.3 4,922.2 Treasury stock at cost (3,693.7 ) (3,154.6 ) Accumulated other comprehensive loss (450.0 ) (437.7 ) Total shareholders' equity 2,201.6 2,287.1 Total liabilities and shareholders' equity $ 8,568.2 $ 8,298.2 Expand A-3 AVERY DENNISON CORPORATION (In millions) (UNAUDITED) Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Operating Activities Net income $ 355.3 $ 349.2 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 100.3 98.7 Amortization 58.4 57.2 Provision for credit losses and sales returns 25.3 28.2 Stock-based compensation 14.7 17.4 Deferred taxes and other non-cash taxes (12.0 ) (3.8 ) Other non-cash expense and loss (income and gain), net 20.8 46.6 Changes in assets and liabilities and other adjustments (370.3 ) (276.0 ) Net cash provided by operating activities 192.5 317.5 Investing Activities Purchases of property, plant and equipment (66.0 ) (96.3 ) Purchases of software and other deferred charges (15.2 ) (12.9 ) Purchases of Argentine Blue Chip Swap securities --- (34.2 ) Proceeds from sales of Argentine Blue Chip Swap securities --- 24.0 Proceeds from sales of property, plant and equipment 15.7 0.3 Proceeds from insurance and sales (purchases) of investments, net 8.8 2.2 Proceeds from settlement of net investment hedges 6.2 --- Payments for acquisitions, net of cash acquired, and venture investments (10.7 ) (1.9 ) Net cash used in investing activities (61.2 ) (118.8 ) Financing Activities Net increase (decrease) in borrowings with maturities of three months or less 816.2 (2.2 ) Repayments of long-term debt and finance leases (551.6 ) (3.5 ) Dividends paid (142.9 ) (136.2 ) Share repurchases (360.0 ) (40.7 ) Net (tax withholding) proceeds related to stock-based compensation (12.6 ) (18.4 ) Payments for settlement of fair value hedges (13.5 ) --- Other 15.9 (1.1 ) Net cash used in financing activities (248.5 ) (202.1 ) Effect of foreign currency translation on cash balances 4.0 (2.8 ) Increase (decrease) in cash and cash equivalents (113.2 ) (6.2 ) Cash and cash equivalents, beginning of year 329.1 215.0 Cash and cash equivalents, end of period $ 215.9 $ 208.8 Expand A-4 Expand Reconciliation of Non-GAAP Financial Measures from GAAP We report our financial results in conformity with accounting principles generally accepted in the United States of America, or GAAP, and also communicate with investors using certain non-GAAP financial measures. These non-GAAP financial measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. These non-GAAP financial measures are intended to supplement the presentation of our financial results prepared in accordance with GAAP. We use these non-GAAP financial measures internally to evaluate trends in our underlying performance, as well as to facilitate comparisons with the results of competitors for quarters and year-to-date periods, as applicable. Based on feedback from investors and financial analysts, we believe that the supplemental non-GAAP financial measures we provide are also useful to their assessments of our performance and operating trends, as well as liquidity. Reconciliations of our non-GAAP financial measures from the most directly comparable GAAP financial measures are provided in accordance with Regulations G and S-K. Our non-GAAP financial measures exclude the impact of certain events, activities or strategic decisions. The accounting effects of these events, activities or decisions, which are included in the GAAP financial measures, may make it more difficult to assess our underlying performance in a single period. By excluding the accounting effects, positive or negative, of certain items (e.g., restructuring charges, outcomes of certain legal matters and settlements, certain effects of strategic transactions and related costs, losses from debt extinguishments, gains or losses from curtailment or settlement of pension obligations, gains or losses on sales of certain assets, gains or losses on venture and other investments, currency adjustments due to highly inflationary economies, and other items), we believe that we are providing meaningful supplemental information that facilitates an understanding of our core operating results and liquidity measures. While some of the items we exclude from GAAP financial measures recur, they tend to be disparate in amount, frequency or timing. We use the non-GAAP financial measures described below in the accompanying news release. Sales change ex. currency refers to the increase or decrease in net sales, excluding the estimated impact of foreign currency translation, and where applicable, the currency adjustments for transitional reporting of highly inflationary economies and the reclassification of sales between segments. Additionally, where applicable, sales change ex. currency is also adjusted for an extra week in our fiscal year and the calendar shift resulting from an extra week in the prior fiscal year. The estimated impact of foreign currency translation is calculated on a constant currency basis, with prior-period results translated at current period average exchange rates to exclude the effect of foreign currency fluctuations. Our 2025 fiscal year that began on December 29, 2024 will end on December 31,2025; fiscal years 2026 and beyond will be coincident with the calendar year beginning on January 1 and ending on December 31. Organic sales change refers to sales change ex. currency, excluding the estimated impact of acquisitions and product line divestitures. We believe that sales change ex. currency and organic sales change assist investors in evaluating the sales change from the ongoing activities of our businesses and enhance their ability to evaluate our results from period to period. Adjusted operating income refers to net income adjusted for taxes; other expense (income), net; interest expense; other non-operating expense (income), net; and other items. Adjusted EBITDA refers to adjusted operating income before depreciation and amortization. Adjusted operating margin refers to adjusted operating income as a percentage of net sales. Adjusted EBITDA margin refers to adjusted EBITDA as a percentage of net sales. Adjusted tax rate refers to the projected full-year GAAP tax rate, adjusted to exclude certain unusual or infrequent events that are expected to significantly impact that rate, such as effects of certain discrete tax planning actions, impacts related to enactments of comprehensive tax law changes, and other items. Adjusted net income refers to income before taxes, tax-effected at the adjusted tax rate, and adjusted for tax-effected restructuring charges, and other items. Adjusted net income per common share, assuming dilution (adjusted EPS) refers to adjusted net income divided by the weighted average number of common shares outstanding, assuming dilution. We believe that adjusted operating margin, adjusted EBITDA margin, adjusted net income, and adjusted EPS assist investors in understanding our core operating trends and comparing our results with those of our competitors. Net debt to adjusted EBITDA ratio refers to total debt (including finance leases) less cash and cash equivalents, divided by adjusted EBITDA for the last twelve months. We believe that the net debt to adjusted EBITDA ratio assists investors in assessing our leverage position. Adjusted free cash flow refers to cash flow provided by operating activities, less payments for property, plant and equipment, less payments for software and other deferred charges, plus proceeds from company-owned life insurance policies, plus proceeds from sales of property, plant and equipment, plus (minus) net proceeds from insurance and sales (purchases) of investments, less net cash used for Argentine Blue Chip Swap securities. Where applicable, adjusted free cash flow is also adjusted for certain acquisition-related transaction costs. We believe that adjusted free cash flow assists investors by showing the amount of cash we have available for debt reductions, dividends, share repurchases, and acquisitions. A-5 (UNAUDITED) Three Months Ended Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Reconciliation of non-GAAP operating and EBITDA margins from GAAP: Net sales $ 2,220.5 $ 2,235.3 $ 4,368.8 $ 4,386.6 Income before taxes $ 255.5 $ 238.4 $ 482.5 $ 472.8 Income before taxes as a percentage of net sales 11.5 % 10.7 % 11.0 % 10.8 % Adjustments: Interest expense $ 34.0 $ 29.2 $ 64.9 $ 57.8 Other non-operating expense (income), net (3.3 ) (5.8 ) (6.6 ) (14.4 ) Operating income before interest expense, other non-operating expense (income) and taxes $ 286.2 $ 261.8 $ 540.8 $ 516.2 Operating margins 12.9 % 11.7 % 12.4 % 11.8 % As reported net income $ 189.0 $ 176.8 $ 355.3 $ 349.2 Adjustments: Restructuring charges, net of reversals: Severance and related costs, net of reversals 7.9 6.3 12.6 11.2 Asset impairment and lease cancellation charges 0.1 0.9 0.3 2.0 (Gain) loss on venture and other investments 1.8 15.0 16.1 17.2 Losses from Argentine peso remeasurement and Blue Chip Swap transactions 1.8 4.1 2.5 15.4 (Gain) loss on sales of assets (11.1 ) --- (11.1 ) --- Outcomes of legal matters and settlements, net --- 0.4 --- 0.2 Transaction and related costs --- 0.3 --- 0.3 Interest expense 34.0 29.2 64.9 57.8 Other non-operating expense (income), net (1) (3.3 ) (5.8 ) (6.6 ) (14.4 ) Provision for income taxes 66.5 61.6 127.2 123.6 Adjusted operating income (non-GAAP) $ 286.7 $ 288.8 $ 561.2 $ 562.5 Adjusted operating margins (non-GAAP) 12.9 % 12.9 % 12.8 % 12.8 % Depreciation and amortization $ 80.8 $ 78.6 $ 158.7 $ 155.9 Adjusted EBITDA (non-GAAP) $ 367.5 $ 367.4 $ 719.9 $ 718.4 Adjusted EBITDA margins (non-GAAP) 16.6 % 16.4 % 16.5 % 16.4 % Reconciliation of non-GAAP net income from GAAP: As reported net income $ 189.0 $ 176.8 $ 355.3 $ 349.2 Adjustments: Restructuring charges and other items 0.5 27.0 20.4 46.3 Argentine interest income --- (0.5 ) (0.1 ) (4.1 ) Tax effect on restructuring charges and other items, and impact of adjusted tax rate --- (7.3 ) (3.5 ) (10.3 ) Adjusted net income (non-GAAP) $ 189.5 $ 196.0 $ 372.1 $ 381.1 (1) Includes Argentine interest income of $.1 for the six months ended June 28, 2025, and $.5 and $4.1 for the three and six months ended June 29, 2024, respectively. Argentine interest income was not significant for the three months ended June 28, 2025. Expand A-5 (continued) AVERY DENNISON CORPORATION (In millions, except % and per share amounts) (UNAUDITED) Three Months Ended Six Months Ended Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Reconciliation of non-GAAP net income per common share from GAAP: As reported net income per common share, assuming dilution $ 2.41 $ 2.18 $ 4.50 $ 4.31 Adjustments per common share, net of tax: Restructuring charges and other items 0.01 0.33 0.26 0.57 Argentine interest income --- --- --- (0.05 ) Tax effect on restructuring charges and other items, and impact of adjusted tax rate --- (0.09 ) (0.04 ) (0.13 ) Adjusted net income per common share, assuming dilution (non-GAAP) $ 2.42 $ 2.42 $ 4.72 $ 4.70 Weighted average number of common shares outstanding, assuming dilution 78.3 81.0 78.9 81.0 Our adjusted tax rate was 26% for both the three and six months ended June 28, 2025 and June 29, 2024. (UNAUDITED) Three Months Ended Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Reconciliation of non-GAAP free cash flow from GAAP: Net cash provided by operating activities (1) $ 208.8 $ 197.7 $ 192.5 $ 317.5 Purchases of property, plant and equipment (30.0 ) (47.5 ) (66.0 ) (96.3 ) Purchases of software and other deferred charges (7.6 ) (6.0 ) (15.2 ) (12.9 ) Purchases of Argentine Blue Chip Swap securities --- (14.0 ) --- (34.2 ) Proceeds from sales of Argentine Blue Chip Swap securities --- 10.0 --- 24.0 Proceeds from sales of property, plant and equipment 15.7 0.2 15.7 0.3 Proceeds from insurance and sales (purchases) of investments, net 2.0 2.1 8.8 2.2 Adjusted free cash flow (non-GAAP) $ 188.9 $ 142.5 $ 135.8 $ 200.6 (1) Net cash provided by operating activities for the three and six months ended June 29, 2024 included payments associated with the settlement of a significant legal matter, net of taxes. The full-year 2024 cash payment, net of cash tax benefit, related to this settlement was $56.6. Expand A-6 AVERY DENNISON CORPORATION (In millions, except %) (UNAUDITED) NET SALES Three Months Ended Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Materials Group $ 1,550.2 $ 1,546.8 $ 3,030.3 $ 3,043.3 Solutions Group 670.3 688.5 1,338.5 1,343.3 Total net sales $ 2,220.5 $ 2,235.3 $ 4,368.8 $ 4,386.6 RECONCILIATION OF NON-GAAP SUPPLEMENTARY INFORMATION FROM GAAP Three Months Ended Six Months Ended Jun. 28, 2025 Jun. 29, 2024 Jun. 28, 2025 Jun. 29, 2024 Materials Group Operating income, as reported $ 249.5 $ 223.4 $ 475.4 $ 449.5 Adjustments: Restructuring charges, net of reversals: Severance and related costs, net of reversals 2.5 1.6 5.0 4.0 Asset impairment and lease cancellation charges --- --- --- 0.1 Losses from Argentine peso remeasurement and Blue Chip Swap transactions 1.8 4.1 2.5 15.4 (Gain) loss on venture and other investments (0.2 ) 15.0 1.0 15.0 (Gain) loss on sales of assets (11.1 ) --- (11.1 ) --- Outcomes of legal matters and settlements, net --- 0.4 --- 1.0 Adjusted operating income (non-GAAP) $ 242.5 $ 244.5 $ 472.8 $ 485.0 Depreciation and amortization 33.0 32.8 64.5 65.6 Adjusted EBITDA (non-GAAP) $ 275.5 $ 277.3 $ 537.3 $ 550.6 Operating margins, as reported 16.1 % 14.4 % 15.7 % 14.8 % Adjusted operating margins (non-GAAP) 15.6 % 15.8 % 15.6 % 15.9 % Adjusted EBITDA margins (non-GAAP) 17.8 % 17.9 % 17.7 % 18.1 % Solutions Group Operating income, as reported $ 59.8 $ 64.1 $ 117.9 $ 120.2 Adjustments: Restructuring charges, net of reversals: Severance and related costs, net of reversals 5.1 4.5 6.9 6.9 Asset impairment and lease cancellation charges 0.1 0.9 0.3 1.9 (Gain) loss on venture and other investments 2.0 --- 10.1 2.2 Transaction and related costs --- 0.3 --- 0.3 Outcomes of legal matters and settlements, net --- --- --- (0.8 ) Adjusted operating income (non-GAAP) $ 67.0 $ 69.8 $ 135.2 $ 130.7 Depreciation and amortization 47.8 45.8 94.2 90.3 Adjusted EBITDA (non-GAAP) $ 114.8 $ 115.6 $ 229.4 $ 221.0 Operating margins, as reported 8.9 % 9.3 % 8.8 % 8.9 % Adjusted operating margins (non-GAAP) 10.0 % 10.1 % 10.1 % 9.7 % Adjusted EBITDA margins (non-GAAP) 17.1 % 16.8 % 17.1 % 16.5 % Expand A-7 AVERY DENNISON CORPORATION PRELIMINARY SUPPLEMENTARY INFORMATION (In millions, except ratios) (UNAUDITED) QTD 3Q24 4Q24 1Q25 2Q25 Reconciliation of non-GAAP EBITDA from GAAP: As reported net income $ 181.7 $ 174.0 $ 166.3 $ 189.0 Other expense (income), net 15.3 16.7 19.9 0.5 Interest expense 30.0 29.2 30.9 34.0 Other non-operating expense (income), net (4.9 ) (7.4 ) (3.3 ) (3.3 ) Provision for income taxes 57.6 67.4 60.7 66.5 Depreciation and amortization 78.1 78.2 77.9 80.8 Adjusted EBITDA (non-GAAP) $ 357.8 $ 358.1 $ 352.4 $ 367.5 Total Debt $ 3,550.2 Less: Cash and cash equivalents 215.9 Net Debt $ 3,334.3 Net Debt to Adjusted EBITDA LTM* (non-GAAP) 2.3 *LTM = Last twelve months (3Q24 to 2Q25) Expand A-8 AVERY DENNISON CORPORATION PRELIMINARY SUPPLEMENTARY INFORMATION (UNAUDITED) Second Quarter 2025 Total Company Materials Group Solutions Group Reconciliation of non-GAAP organic sales change from GAAP: Reported net sales change (0.7 %) 0.2 % (2.6 %) Reclassification of sales between segments --- (0.8 %) 1.7 % Foreign currency translation (0.3 %) (0.5 %) 0.2 % Sales change ex. currency (non-GAAP) (1) (1.0 %) (1.0 %) (0.8 %) Organic sales change (non-GAAP) (1) (1.0 %) (1.0 %) (0.8 %) (1) Totals may not sum due to rounding. Six Months Ended 2025 Total Company Materials Group Solutions Group Reconciliation of non-GAAP organic sales change from GAAP: Reported net sales change (0.4 %) (0.4 %) (0.4 %) Reclassification of sales between segments --- (0.7 %) 1.7 % Foreign currency translation 1.0 % 1.2 % 0.7 % Sales change ex. currency (non-GAAP) (1) 0.6 % --- 2.0 % Organic sales change (non-GAAP) (1) 0.6 % --- 2.0 % (1) Totals may not sum due to rounding. Expand
Eyewitness News
17-06-2025
- General
- Eyewitness News
Sewage, garbage, dirty water: Theewaterskloof is in a mess after years of bad management
CAPE TOWN - In the list of comments on the Theewaterskloof Municipality draft budget, nine residents of Riviersonderend complained about the water being dirty, smelly and undrinkable. An 8% increase in the water tariff has since been passed, yet food and hospitality businesses have had to invest heavily in filtration systems or find alternative sources of water. DA Councillor Piet Stander said the town used to have the best quality water in the Overberg, as it was gravity-fed from the perennial Olifants River in the adjacent mountains, to the reservoir. But Stander said lack of maintenance meant pipe breakages and leaks had not been fixed, so for the past four years, water had been pumped from the Sonderend River, which was polluted by upstream effluent and agricultural runoff, including pesticides. He said the cost of chemicals now needed to treat the water has exceeded what it would have cost to fix the pipes. Riviersonderend is not the only town in the municipality in which the drinking water quality does not meet the minimum national standards. Besides Riviersonderend, the municipality includes Caledon, Greyton, Genadendal, Tesselaarsdal, Botrivier, Villiersdorp, and Grabouw. Only Tesselaarsdal and Botriver have acceptable quality drinking water, according to the Department of Water and Sanitation's Integrated Regulatory Information System (IRIS). The rest are all failing the microbiological standards, having more faecal bacteria in the water than is allowed. IRIS also shows that sewage treatment works in all eight towns are failing, and have been for years in most, releasing sewage that has not been properly treated into the streams and rivers in the area. The Caledon sewage treatment works has just had a R56-million upgrade, paid for in this financial year. But there have been 32 high-level failures this year, with effluent spewed out with E. coli counts of more than double what is allowed, along with high levels of ammonia and other pollution indicators. A visit to the plant found that although new infrastructure and equipment was installed, only half of it appeared to be working. Of four aerators, only two were working, and of two clarifiers, only one was operational. The landfill at Caledon was supposed to have been closed and rehabilitated years only is it still in use, but the refuse dumped there is uncovered, with wind blowing plastic into the surrounding landscape. The management of solid waste in Theewaterskloof is also problematic. The Caledon landfill, carved into the northern side of the Klein Swartberg mountain, is uncovered, and plastic waste is being blown across the landscape. It is also full. The municipality's Spatial Development Framework of 2023 states it should have been closed when a transfer station was completed in the 2020/21 financial year, and the landfill rehabilitated. The transfer station, from which waste is supposed to be taken to Karwyderskraal regional landfill site outside Hermanus, has been completed but is unused, with the paved road in the premises already needing repairs. In Villiersdorp, a transfer station to take waste to Karwyderskraal was built, but has been stripped for use as building material in informal settlements. The Spatial Development Framework states the landfill has been closed and is to be rehabilitated, but as the transfer station is dysfunctional, the landfill, while officially closed, is still used. Residents still use it to dump rubble and garden refuse provided the road there has been graded and is passable. When it is not, they dump their rubbish in the bushes alongside the road. A resident, who asked not to be named, said household refuse is collected and taken to the Caledon landfill. The crumbling pillars of municipal service are reflected in the lack of stability in municipal management. There have been four municipal managers in as many years since the municipal elections and the ousting of Danie Lubbe by the new coalition of the ANC, Patriotic Alliance (PA), EFF, and GOOD. Lubbe was subsequently employed by Langeberg Municipality. The contrast between the two municipalities is stark. The Auditor-General doubts Theewaterskloof can be considered a going concern and racked up more than R300-million in irregular and unauthorised expenditure in 2023/24. But Langeberg received an unqualified audit and no irregular or unauthorised expenditure, and just R5,000 in fruitless and wasteful expenditure. The ANC-led coalition, which was heavily reliant on GOOD joining in with its three seats in the 27-seat council, replaced Lubbe with Boy Manqoba Ngubo in June 2022. Manqoba Ngubo's position was finalised with a five-year contract in October that year, but he unexpectedly resigned five months later. The ANC-led coalition then controversially appointed Wilfred Solomons-Johannnes ahead of a better-qualified candidate. Western Cape MEC for local government, Anton Bredell, challenged the appointment, and the high court duly ruled it was illegal. Solomons-Johannes stood down as municipal manager in June 2024. He remains in the municipality as director of community services, but in April was placed on suspension while R41-million in missing disaster relief funds for floods in September 2023 is investigated. Reynold Stevens was then appointed in an acting position from July 2024 until replaced by Walter Hendricks in mid-February. Hendricks was officially appointed from his acting position on 30 May. New municipal manager Walter Hendricks is the fourth municipal manager since Daniel Lubbe was ousted after the 2021 local government elections. Hendricks hopes to get the municipality back on an even financial keel so that municipal services can be improved. Hendricks is frank about the challenges the municipality faces. 'We're in a mess, we don't have money,' Hendricks told GroundUp. 'The first thing we need to do is remain within the boundaries of the law.' Besides the coffers being left empty, he said there were internal challenges with certain people appointed who 'don't add the kind of value you need'. He said his aim was to focus on the municipality's core functions of water, electricity, roads and stormwater, refuse and waste water. 'Luckily, I have a mayor who has bought into that.' He said he was working closely with provincial and National Treasury officials and master plans were in place. Once Theewaterskloof was financially stable again, they could start looking at reinstituting facilities such as swimming pools in the towns, upgrading sports fields and improving libraries. 'We have to eat the elephant bit by bit.'
The South African
05-06-2025
- Business
- The South African
Cape Town among the top global destinations for this kind of event
Cape Town continues to grow in popularity with visitors. Image via Pixabay. Home » Cape Town among the top global destinations for this kind of event Cape Town continues to grow in popularity with visitors. Image via Pixabay. Cape Town is growing in popularity with business travellers. In fact, a new report shows that the city is now one of the world's top destinations for international conventions. That's according to the International Congress and Convention Association (ICCA) GlobeWatch 2024 Business Analytics Report. The report provides insight into global association meetings, including the favourite destinations for such conferences. Cape Town has risen 15 spots in the ICCA GlobeWatch 2024 rankings for international association meetings. It now ranks 35th globally. The city also ranks in the top 10 globally for average attendance per event. 717 delegates attend the average event in the city. Cape Town hosted 58 international meetings in 2024, up from 42 in 2023. Smaller towns like Stellenbosch also hosted multiple events, reflecting a province-wide trend. South Africa as a whole remains the top country in Africa for international meetings. The country hosted 98 international meetings in both 2023 and 2024. The business events industry generated over R2 billion for the national economy in that period. The rise is attributed to strategic bidding, strong public-private partnerships, and increasing interest in the region as a hub for knowledge-sharing and innovation. Wesgro, the official tourism, trade, and investment promotion agency for Cape Town and the Western Cape, welcomed the news. In a statement on Bizcommunity, CEO Wrenelle Stander said: 'This ranking shows that Cape Town and the Western Cape stand shoulder to shoulder with global conference hubs such as Dubai, Barcelona, and Melbourne. We are particularly pleased that smaller towns across the province are experiencing the benefits of business events.' Stander added that Wesgro secured 36 new conference bids for 2024/25, projecting an impact of R745 million and over 27 000 delegates through 2028. Cape Town's rise in the rankings was also celebrated by Western Cape Minister of Agriculture, Economic Development and Tourism, Dr Ivan Meyer. Alderman James Vos, Mayoral Committee Member for Economic Growth, also welcomed the news. The Mother City's popularity is by no means slowing down. Cape Town will host a plethora of conventions in the next few years, including: International Communication Association Congress (2026) World Congress on ADHD (2027) World Congress of Entomology (2028) Let us know by leaving a comment below or send a WhatsApp to 060 011 0211. Subscribe to The South African website's newsletters and follow us on WhatsApp, Facebook, X, and Bluesky for the latest news.
Tatler Asia
03-06-2025
- General
- Tatler Asia
Home tour: A serene estate surrounded by layered gardens in South Africa
When Stander and Ferreira purchased the property almost two decades ago, they were attracted in part by its location—nestled on the edge of Knysna Forest, a patch of wilderness located close to the coast and characterised by indigenous afromontane vegetation, which has also long been renowned as one of South Africa's loveliest places. The property featured an original woodcutter's adobe brickhouse as well as several other structures, including a pair of timber cottages. 'The buildings were neat and beautifully built with basic materials and minimal fittings,' they recall. 'Small pockets of garden with larger areas of lawn surrounded the buildings, and the rest of the 1.75 hectares of land was maintained with a tractor-mounted mower that kept the field low, promoting the growth of buffalo grass. Scattered with Australian blackwood and pine, it had a good number of water tanks for storage of rainwater, which is the only source of water. It was very liveable and basically a clean palette for our vision.' Above Stander with Shinto, one of the three Maine Coon cats that reside at Highacre Above Ferreira putting the finishing touches to the floral arrangements Above This cottage living room features a vintage leather sofa Above Built using partially salvaged materials, the conservatory was designed as the ideal environment for nurturing delicate potted plants and flowers It is almost impossible to imagine Highacre as it once was. Today, its lush, layered gardens bear little resemblance to their former state. And initially at least, realising their vision was a challenge. Highacre is on the edge of an indigenous forest reserve, so 'initially, wildlife such as baboons, bushbuck, porcupines and bushpigs raided newly planted areas', they say. 'We had to fence off a section of the garden and in time, we managed to protect our territory with our family of dogs.' This wonderfully disparate pack—there are currently 12 canines in all, ranging in size and breed from a diminutive yet very assertive Jack Russell Terrier to gentle but incredibly speedy giant Boerwindhonde—roams the garden freely, forming an effective deterrent against baboons in particular. Marauding wildlife was not the only challenge encountered. Heavy clay with a relatively thin layer of topsoil necessitated painstakingly labour-intensive and time-consuming preparation of the soil during each phase of the development of the garden. In several areas, too, 'we used permaculture practices to prepare areas for planting', say the owners. Above The garden at Highacre faces the east and frames sunrises beautifully Above Hannes Stander and Daniel 'DP' Ferreira with some of their beloved pet dogs, Above Shinto, one of the three Maine Coon cats that reside at Highacre Above Some of Ferreira's collection of vases, furniture, glassware, cutlery and crockery lend a charming touch With the absence of an existing irrigation system and rainwater as its sole source, water conservation remains an ongoing priority. 'Watering only when needed has ensured a garden that would be resilient over time,' they say. This area does usually get fairly good rainfall—although of course it can vary in a time of climate change—but the abundant feel of all of Highacre's various garden spaces is a result of careful soil preparation, ecologically sensitive planting and wise water planning. Highacre now features multiple different spaces, each with its own distinct identity and atmosphere. Overall, the garden is a masterclass in beautifully textured, naturalistic planting, and incorporates a large pond and surrounding wetland, an area that at the height of summer overflows with the blooms of 19 different species of agapanthus, a restful round lawn surrounded by walled seating that defines its circle, an elegant gravelled walk enclosed by high hedges, a fragrant rose garden and an abundance of beautiful trees. All of the various spaces of the garden are linked via pathways that twine through the landscape, enabling visitors to meander at leisure and wherever they please. In case you missed it: Inside Peninsula House: The transformation of a Penang art deco landmark Above Exposed roof beams lend a barn-like feel to the conservatory Above A corner featuring a ceramic prep sink from Koöperasie Stories Above A steely blue wall acts as a calming backdrop to an assortment of curiosities Above This botanical-themed table setting features vintage Villeroy & Boch fruit plates and Wedgwood majolica green glazed salad plates In addition, there is the delightfully layered and rustic conservatory, which is both a variably semi- to fully enclosed greenhouse in which potted plants can be nurtured, and a wonderful space in which small events are hosted. Combining the conservatory with the beautiful garden pavilion—a fairly newly developed part of Highacre that straddles the boundary between the more intensely developed garden and the natural environment, and is accessible via an elongated pergola—makes for a truly special environment in which to celebrate a wedding or a birthday. Two charmingly appointed guest cottages provide overnight accommodation for visitors. The creative owners might focus their attention in different realms, with Stander mainly working in landscape design and Ferreira taking the lead on events and floristry, but their mutual love of plants is clearly key to both their professional and personal lives. When asked what it is about working with plants that has always attracted them, they respond: 'Their presence as a life force in our environment—and how they can be grown, nurtured and shaped to fulfil a desired function in the garden.' Above Interior walls are clad in salvaged terracotta roof tiles Above An abundance of foliage in the garden Above The delightfully layered and rustic conservatory, which is both a variably semi- to fully enclosed greenhouse Stander's office and landscaping yard are located on the property, making Highacre a busy place on a daily bais, while Ferreira's studio in the nearby town of Knysna, where he keeps a collection of vases, furniture, glassware, cutlery and crockery for the events sude of their business, is also invariably a hive of activity. But the Highacre garden itself remains a focus. This is their home as well as a place for hosting events and guests, and they 'spend as much time as possible here to make sure that it is continually developed, kept in a beautiful state and nurtured sufficiently'. Unique and special places—especially gardens—can't be brought into existence overnight. It has taken many years of effort and care to create Highacre; as Stander and Ferreira declare: 'We consider each space and project very carefully, regarding function and aesthetic before we manifest a space. Sometimes we contemplate for a long time, and when the installation happens, it draws from all those thoughts, discussions and dreams.' Their combined aesthetic skills, plus bucketloads of patience, dedication and hard work, have enabled the development of this unique and special place, which 'celebrates the botanical realm' in a way that is sure to inspire and invigorate those fortunate enough to visit it in person for many years to come. Credits Images: Warren Heath / Bureaux Images: Sven Alberding / Bureaux
The Citizen
23-05-2025
- The Citizen
Court dismisses bid to drop charges in 1987 student activist Nyoka's murder case
The court rejected claims of no evidence in the case of apartheid-era officers accused of murdering Caiphus Nyoka in 1987. The Pretoria High Court sitting in Benoni has rejected claims of no evidence in the case of two former apartheid-era officers accused of murdering student activist Caiphus Nyoka in 1987. The court ruled that there is enough evidence to proceed with the trial of two ex-officers accused of killing the Congress of South African Students (COSAS) member and student activist. This follows a Section 174 application brought under the Criminal Procedure Act 51 of 1977 by former commanding officer Major Leon Louis Van Den Berg (75) and former Sergeant Abraham Hercules Engelbrecht (61). The two, along with former Sergeant Pieter Stander, 60, are facing a murder charge in connection with Nyoka's death. Nyoka gunned down According to the allegations, the three members of the South African Police Service's Reaction Unit got together on the evening of 23 August, 1987 to plot Nyoka's murder. Van Den Berg allegedly led the planning of a raid on his residence. National Prosecuting Authority (NPA) regional spokesperson Lumka Mahanjana said at around 2am on 24 August, 1987, Stander, Engelbrecht, and other Reaction Unit members – who are also charged separately – arrived at Nyoka's home and broke into his room. ALSO READ: NPA reopens inquests into Chief Albert Luthuli and Griffiths Mxenge's deaths 'They found him sleeping with three of his friends. After identifying him, they removed the friends from the room and thereafter proceeded to shoot him nine times,' Mahanjana said. Nyoka died on the scene from multiple gunshot wounds. Trial proceedings During the trial, the state called five witnesses, including Nyoka's sisters Alegria and Mothasi Nyoka and one of his three friends who were present on the night of the incident, Gugulakhe Exodus Nyokane. The court also heard testimony from expert witness Dr Nicky Rousseau, a Truth and Reconciliation Commission (TRC) researcher, and the investigating officer, Lieutenant Petrus Colonel Beukman. After five witnesses testified, the state closed its case. Accused application dismissed 'Thereafter accused number one (Van Den Berg) and two (Engelbrecht) brought a section 174 application claiming that the state had no case,' Mahanjana said. ALSO READ: Ramaphosa launches commission of inquiry into apartheid-era justice delays 'After the court dismissed their application, accused number three (Stander) opted to remain silent and closed his case.' The court has postponed the matter to 8 to19 September for the defence cases of Engelbrecht and Stander. Sentencing The sentencing proceedings for Johan Marais, 65, a former member of the Reaction Unit 6 in Dunnottar who was prosecuted and found guilty of the same offences, have been rescheduled for 5 to 6 June. 'This court outcome is encouraging as the state overcomes the first hurdle that was presented by the defence in order to prevent the trial from proceeding,' Mahanjana concluded. 'The state will continue to put forward a formidable case to ensure that justice is served against such atrocities of the apartheid era.'
