US-based Avery Dennison has reported a net income of $138.3m during the third quarter of financial year 2023, a decline of 38% from $221.5m in Q3 last year. 

The company said its net income per common share, assuming dilution, in Q3 2023 was $1.71 while the same was $2.70 in Q3 2022.

For the quarterly period, which ended on 30 September 2023, the company witnessed a 9.4% decrease, on a reported basis, in its total net sales to $2.1bn from $2.3bn in Q3 2022.

The net sales of Avery’s materials group segment were down by 14% to $1.4bn from $1.6bn during the same quarter last year. 

This decline in the materials group’s sales has been attributed to low-single digits organically in the company’s graphics and reflective solutions businesses.

However, Avery’s solutions group segment recorded net sales of $642.3m in Q3 2023, representing a 3.1% rise from $623.1 in last year’s Q3.

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This growth in the solutions group’s sales was mainly attributed to high-single-digit results, on an organic basis, in high-value categories. 

Avery’s total adjusted earnings before interest, taxes, depreciation, and amortisation stood at $328.3m, as against $360.4m in Q3 2022.

The US-based company now forecasts its fourth-quarter 2023 reported earnings per share to range between $2.05 and $2.20.

Avery president and CEO Deon Stander said: “Earnings per share were in line with our expectations for the third quarter, again increasing sequentially.

“Volume in both label materials and apparel solutions improved sequentially, continuing to recover from slow market conditions, largely inventory destocking, while our intelligent labels platform continued to accelerate adoption into new categories.

“We expect further sequential improvement in the fourth quarter, as the pace of inventory destocking continues to moderate and non-apparel intelligent label programmes accelerate.”

Earlier this month, Avery announced signing an agreement to acquire Silver Crystal Group to further expand its external embellishments portfolio.