Acquisitions push revenues up at label specialist.

 

Avery’s revenue in 2022 jumped by almost 29 per cent compared with 2021.

 

The label specialist – owned by Toronto-based CCL Industries – reported 2022 sales of C$913.6 million (US$675 million), 28.9 per cent higher than a year earlier. 

 

The increase was driven largely by acquisitions, although organic growth still came in at 7.1 per cent.

 

In North America (around 70 per cent of revenue), organic sales rose in the high single digits. Direct-to-consumer business lines, including name badges, grew strongly thanks to the return of in-person events. Organisation products were also up due to a combination of improving end-user demand, price increases, and share gains for three-ring binders.

 

Sales and profitability in the printable media category in North America declined as one key customer “dramatically” reduced inventory, while paper shortages impacted the supply side. The newly acquired RFID card business continued to perform ahead of expectations, said CCL, but the IMP horticultural business saw slower consumer demand.

 

International results

 

In Avery’s international markets, organic revenue was up in the single digits in Europe. There was “significant” growth in all direct-to-consumer categories, partially offset by reductions in legacy printable media operations.

 

There were mixed results in other regions. Latin America saw gains, but these were offset by declines in Australia.

 

Avery’s operating profit in 2022 was up by 12.6 per cent to C$167.6 million. 

 

For 2023, growth at Avery’s direct-to-consumer brands is expected to outpace legacy product lines. CCL said that further tuck-in acquisitions to bolster Avery’s presence globally are also “possible”.

 

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