Avery Dennison Reports $705 Million Net Income and 5% Revenue Growth for Fiscal Year 2024

Avery Dennison Corporation reported a net income of approximately $705 million for the fiscal year ending December 28, 2024, a significant increase from the $503 million recorded in the previous year. This growth was driven by a 5% rise in net sales, totaling $8.76 billion, compared to $8.36 billion in 2023. The increase in revenue was attributed to higher volumes across both the Materials and Solutions Groups, despite some offset from raw material deflation-related price reductions. The gross profit margin improved to 28.9%, up from 27.2% in the prior year, reflecting benefits from productivity initiatives and cost-saving measures.

In terms of strategic developments, Avery Dennison completed three acquisitions in 2023, including Silver Crystal Group, Lion Brothers, and Thermopatch, for a total consideration of approximately $231 million. These acquisitions were aimed at enhancing the company's product offerings in the Solutions Group, which focuses on branding and information solutions. The company also made venture investments in three technology firms, further expanding its innovation capabilities. As of the end of 2024, Avery Dennison operated over 200 manufacturing and distribution facilities across more than 50 countries, with international operations accounting for approximately 70% of net sales.

Operationally, the company reported a workforce of around 35,000 employees, with approximately 83% located outside the U.S. and 66% in emerging markets. The Materials Group generated about 69% of total net sales, while the Solutions Group contributed 31%. The company noted a focus on expanding its presence in high-value categories, particularly in intelligent labels and sustainable products, which are increasingly in demand due to market trends toward sustainability and transparency.

Looking ahead, Avery Dennison anticipates continued growth in net sales for 2025, driven by volume increases in both reportable segments. However, the company expects some unfavorable impacts from foreign currency translation based on recent exchange rates. The effective tax rate for the upcoming year is projected to be in the mid-twenty percent range, reflecting ongoing adjustments in tax strategies and compliance with international tax regulations. The company remains committed to its restructuring initiatives, which are expected to yield incremental savings in the coming fiscal year.