Avery Dennison Corp. (AVY) Q3 2022 Earnings Call Transcript

Avery Dennison Corp. (NYSE:AVY) Q3 2022 Earnings Conference Call October 26, 2022 1:00 PM ET

Company Participants

John Eble - Head of Investor Relations

Mitch Butier - Chairman and CEO

Greg Lovins - Senior Vice President and CFO

Deon Stander - President and COO

Conference Call Participants

Ghansham Panjabi - Robert W. Baird

Anthony Pettinari - Citigroup

John McNulty - BMO Capital Markets

Jeffrey Zekauskas - JPMorgan

George Staphos - BofA Securities

Joshua Spector - UBS

Adam Josephson - KeyBanc Capital Markets

Michael Roxland - Truist Securities

Christopher Kapsch - Loop Capital Markets

Operator

Greetings. Thank you for standing by. Welcome to Avery Dennison's Earnings Conference Call for the Third Quarter Ended on October 1, 2022. This call is being recorded and will be available for replay from 4:00 p.m. Eastern Time today through midnight Eastern Time, October 29. To access the replay, please dial 800-633-8284 or +1 402-977-9140 FOR international callers. The conference ID number is 21997967.

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, Scott. 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 A10 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.

As always, on the call today are Mitch Butier, Chairman and Chief Executive Officer; and Greg Lovins, Senior Vice President and Chief Financial Officer. Also joining us for Q&A today is Deon Stander, President and Chief Operating Officer.

I'll now turn the call over to Mitch.

Mitch Butier

Thanks, John, and good day, everyone. We delivered another strong quarter with revenue up 19% and EPS of $2.46 and up 26% ex currency and in line with expectations. We had strong performance across the company. LGM and RBIS, both delivered impressive top and bottom line growth. Our strong results come amidst a dynamic environment. Inflation continues, we're raising prices accordingly, and now we see signs of softening demand. The higher inventory levels downstream from us that we called out at the start of the year have begun to finally reduce.