Analyst Note| Brian Bernard, CFA, CPA |
Avery Dennison reported solid financial performance in the first quarter on strong end market demand and increased selling prices. Organic sales increased roughly 13% year over year and were up almost 8% sequentially. Adjusted operating margins decreased 170 basis points to 12%, driven by raw material inflation and rising operating costs. While we see incremental improvements through the year, we think additional pricing action will be necessary across most of its business.