Avery has reported a drop in second quarter sales and profit driven by tariff-related costs.

 

In the three months to 30 June 2025, Avery generated revenue of C$266.1 million (US$193 million), an organic year-on-year decline of 5.9 per cent, while operating profit fell by 18 per cent  to C$50.6 million.

 

Sales in North America were down in the high single digits, although the region was comping against a strong Q2 in 2024. As expected, unplanned tariff costs and lower shipments for BTS products hit profitability. Meanwhile, sales and profitability for direct-to-consumer channels improved, mainly thanks to the label, RFID wristband and access card categories.

 

In the Q2 presentation of parent company CCL Industries, it was revealed the US tariff impact on Avery was around C$4 million, net of price surcharges. These costs were incurred due to China-sourced components for ring binders and other ancillary products made in Mexico.

 

International represented approximately 35 per cent of Avery’s sales in Q2 2025. While the top line grew organically in the low single digits, profitability declined. This was principally due to Latin American operations affected by currency devaluations, European legacy product lines and softness in Australia. These factors were partly offset by European direct-to-consumer operations where the quarter – which included a month’s contribution from We Print Lanyards – was described as “good”.

 

For the first six months of the year, Avery’s revenue was C$524.9 million and operating profit was C$102.8 million. These figures represented currency-adjusted declines of four per cent and 10 per cent respectively.

 

CCL said Avery’s performance is expected to improve sequentially in the third quarter, although BTS replenishment orders remain a “risk”.

 

For more on this story and other global news from OPI, go to https://www.opi.net/news/region/001-north-america/q2-declines-at-avery/