Geoff Martin, CEO of Avery’s parent group CCL Industries, said the label specialist had an “outstanding” first quarter of the year.

 

Avery reported Q1 2023 revenue of C$260 million (US$193 million), a year-on-year increase of more than 44%. The acquisitions of Adelbras and Floramedia boosted the top line by around 25%, while organic growth stood at 14.5%.

 

“Distribution channel inventory rebuild following a destocking period in the second half of 2022 drove better results for legacy printable media and organisation products while direct-to-consumer growth was robust, especially in badges and ID cards,” said Martin.

 

Operating profit for Q1 was up by 43% (adjusted for currency) to C$50.6 million, with operating margin improving by 60 basis points to 19.4%.

 

The current quarter is expected to be more challenging in terms of comparisons with last year. Early back-to-school orders in 2022 will not repeat in 2023. While this will negatively impact Q2, it is expected to have a positive effect on the following quarter.