Avery Dennison Starts 2026 on a High Note: Strong Sales Growth, Innovative Investments, and Proactive Inflation Management
Avery Dennison, a leading global provider of innovative materials and solutions, has delivered a strong start to 2026, driven by mid-single digit volume mix growth and adjusted earnings per share (EPS) up 7% year-over-year.
According to Deon Stander, President and Chief Executive Officer, the company's diversified portfolio and strong productivity and cost control management have enabled it to deliver a resilient performance in the face of geopolitical uncertainty. Stander noted that while raw material inflation has created challenges, Avery Dennison is proactively responding with price increases and material reengineering to offset these pressures.
The Materials Group reported sales growth of 11% over the prior year, with organic sales up approximately 2%. This performance was driven by mid-single digit volume and mix growth, partially offset by deflation-related price reductions. The company saw strong growth in its base categories, which grew mid-single digits and provided a critical offset to a quieter quarter for its high-value categories.
Avery Dennison's investment in innovation and service-led differentiation is paying off, with the company signing an agreement to invest an incremental $75 million in Wiliot. This move deepens the company's long-standing partnership and strengthens its enterprise-wide Intelligent Labels platform. The investment includes a dedicated joint go-to-market team to accelerate adoption across retail, food, and logistics.
The company is also maintaining commercial and operational agility by taking swift procurement and cost actions to stay ahead of inflationary pressures. Additionally, Avery Dennison is extending its scenario planning to drive greater productivity and disciplined cost management, protecting its bottom line through a wide range of scenarios.
As the company looks to the future, it anticipates that its high-value categories will return to growth as demand stabilizes. In label materials, the company expects customer pre-buying volume to largely unwind during the second half of Q2. Avery Dennison's teams are focused on aligning production levels and cost structures with shifting demand.
The company's profit performance was also strong, with adjusted EBITDA up low double digits and margin up 10 basis points compared to the prior year. This performance reflects the company's ability to manage through inflation cycles and maintain its competitive advantage in security of supply.
