Avery Dennison has reported a net income of $100.4m for the second quarter (Q2) of 2023, representing a 53% decline from $214.5m in Q2 2022 (FY22).

The Ohio, US-based company said its reported earnings per share (EPS) was $1.24 for the quarter while it was $2.61 during the same period in 2022.

The net sales for this quarter, which ended on 1 July 2023, were $2.1bn. It reflects a decrease of 10.9% on a reported basis from the net sales of $2.3bn in Q2 of the previous year.

In terms of specific segments, Avery Dennison’s Materials Group witnessed a 12.6% decrease, on a reported basis, in net sales to $1.47bn from $1.68bn a year ago.

The net sales of its Solutions Group stood at $614.5m, down by 6.5%, on a reported basis, compared to $657.5m in Q2 of 2022.

The company’s adjusted earnings before interest, taxes, depreciation, and amortisation totalled $307.8m versus $384m in Q2 FY22.

Avery's chair and CEO Mitch Butier said: “Volumes in our Materials businesses continue to recover from slow market conditions, largely destocking, while our Intelligent Labels platform accelerates adoption into new categories.

“While it's good to see the continuing sequential improvements in our Materials businesses and the building momentum in Intelligent Labels, the pace of our recovery is slower than anticipated.”

For the first half (H1) of FY23, Avery registered a net income of $221.6m while the previous year’s H1 net income was $412.7m.

Net sales also decreased to $4.15bn in H1 FY23 from $4.69bn a year ago.

For the upcoming Q3 FY23, the company is expecting its reported EPS to range between $1.70 to $1.90.

Avery president and COO Deon Stander said: “We remain confident this period of challenging results will soon pass. Our leadership positions in large diverse growing markets, the strategic foundations we have laid, and the dedication and expertise of our team positions us well to continue to deliver GDP+ growth and top-quartile returns over the long run.”