Avery Dennison Corporation has announced preliminary, unaudited results for its fourth quarter and full year ended December 30, 2023. Fourth quarter 2023 net sales were $2.1 billion, up 4%. Full year 2023 net sales were $8.4 billion, down 8%.

“Earnings per share were in line with our expectations for the fourth quarter, increasing sequentially for the fourth consecutive quarter,” says Deon Stander, president and CEO. “Volume in both Label Materials and Apparel Solutions improved sequentially, continuing to recover from slow market conditions, largely due to inventory destocking, while our Intelligent Labels platform continues to accelerate.

“In Intelligent Labels, we are targeting to deliver significant growth in 2024, as apparel rebounds and we accelerate the adoption of our solutions that help address key industry challenges in logistics, food and general retail, further advancing our leadership position at the intersection of the physical and digital.

“Following a challenging 2023 which included significant inventory destocking downstream from us, we expect to deliver strong earnings growth in 2024 and make progress toward our 2025 goals,” adds Stander. “We remain confident that the consistent execution of our strategies will enable us to meet our long-term goals for superior value creation through a balance of profitable growth and capital discipline.

Materials Group reported sales decreased 2% to $1.4 billion in 4Q 2023. Sales were down 4% ex. currency and on an organic basis. Label Materials sales were down mid-single digits on an organic basis, while volume was up low-single digits. Reported operating margin was 12%. Adjusted EBITDA margin (non-GAAP) was 16.2%, up 340 basis points driven by productivity and the net benefit of pricing and raw material input costs.

Solutions Group reported sales increased 18% to $692 million in 4Q 2023. Sales were up 19% ex. currency and 14% on an organic basis. Apparel Solutions volume was up sequentially, while sales in high-value categories were up more than 20% on an organic basis. The reported operating margin was 10.2%. Adjusted EBITDA margin was 18.2%, up 230 basis points compared to prior year and 180 basis points sequentially, driven primarily by volume.