Avery Dennison Delivers Strong Q1 Performance Amidst Dynamic Market
Avery Dennison, a global leader in materials science and technology, reported a strong first quarter performance in 2025. The company's earnings per share grew 4% ex-currency, meeting market expectations.
During the quarterly conference call, Deon Stander, President and Chief Executive Officer of Avery Dennison, highlighted the company's success in delivering solid volume growth and expanding overall margins across both segments. Materials Group showed impressive volume growth, driven by high-value categories that account for over a third of sales. Organic growth in these products reached high single digits, with notable strength in Graphics and Reflective Solutions and industrial tapes.
The company's strategy to expand its position in high-value categories is yielding positive results. Avery Dennison delivered strong margins across the Materials Group, thanks to productivity improvements and cost-saving initiatives.
Label volume in North America showed improvement compared to prior years, with a significant sequential increase as customer working capital actions normalized. Volume growth was observed in emerging markets, particularly in the ASEAN region, while China saw comparable volume.
In the Solutions group, Avery Dennison reported strong top-line growth and margin expansion. The base business performed well, driven by apparel growth that reached mid-single digits. High-value solutions also grew at low single-digit rates, with Vestcom delivering strong results due to existing customer loyalty and new program rollouts at CVS Health.
Embelex, a high-growth platform focused on personalization and fan engagement in team sports, experienced mid-single digit declines due to softer sales of large U.S. performance brands and slower adoption rates for new programs launched last year. The company expects Embelex growth to strengthen later this year as the 2026 World Cup approaches.
Enterprise-wide Intelligent Labels saw mid-single digit organic growth in the first quarter, driven by strong demand from apparel and food categories. Logistics volumes declined as expected, but Avery Dennison's solutions continue to deliver strong returns for customers, helping drive increased routing accuracy and labor efficiency. The company is actively working on key projects and expects more industry adoption through the cycle.
Avery Dennison's focus on innovation and strategic collaborations has paid off, particularly in the food sector where its partnership with Kroger aims to maximize freshness, reduce waste, and improve the consumer experience.
