Avery Dennison Corporation (AVY) Q1 2023 Earnings Call Transcript

Avery Dennison Corporation (NYSE:AVY) Q1 2023 Results Conference Call April 26, 2023 1:00 PM ET

Company Participants

John Eble - Head, IR

Mitch Butier - Chairman and CEO

Deon Stander - President and COO

Greg Lovins - SVP and CFO

Conference Call Participants

Ghansham Panjabi - Baird

John McNulty - BMO Capital Markets

George Staphos - Bank of America

Anthony Pettinari - Citigroup

Jeff Zekauskas - JPMorgan Securities

Josh Spector - UBS Securities, LLC

Mike Roxland - Truist Securities

Christopher Kapsch - Loop Capital Markets

Operator

Ladies and gentlemen, thank you for standing by. During the presentation, all participants will be in a listen-only mode. Afterward, we'll conduct a question-and-answer session. [Operator Instructions]

And welcome to the Avery Dennison's Earnings Conference Call for the First Quarter Ended on April 1, 2023. This call is being recorded and will be available for replay from 5:00 pm Eastern Time today through midnight Eastern Time, April 29th. To access the replay, please dial 800-633-8284 or 1-402-977-9140 for international callers. The conference ID number is 2202-0691.

I’d now like to turn the call over to John Eble, Avery Dennison's Head of Investor Relations. Please go ahead.

John Eble

Thank you, Kathy. Please note that throughout today's discussion, we'll be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined, qualified and reconciled from GAAP on schedules A4 to A8 of the financial statements accompanying today's earnings release. We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the safe harbor statement included in today's earnings release.

On the call today are Mitch Butier, Chairman and Chief Executive Officer; Deon Stander, President and Chief Operating Officer; and Greg Lovins, Senior Vice President and Chief Financial Officer.

I'll now turn the call over to Mitch.

Mitch Butier

Thanks, John. Good day, everyone.

We continue to make progress on our long-term strategies and objectives and continue to expect to achieve a run rate greater than $10 of EPS in the second half of this year. That said, the year started off even more challenging than we anticipated a few months ago. In the first quarter, we delivered EPS in line with our expectations as our productivity measures offset a shortfall in revenue. This lower revenue was due to higher-than-anticipated inventory destocking, a trend that has continued into the second quarter, causing us to reduce our outlook for Q2 and thus the full year.