Financial report roundup: Avery Dennison’s net income decline by 38% in Q3 of 2023, Silgan’s net sales drop by 9% as Metsä’s sale dip by 26% in Q3 of 2023

USA – Avery Dennison, a multinational packaging and materials manufacturer, has reported a net income of US$138.3 million during Q3 of 2023, representing a decline of 38% from the US$221.5 million recorded in the same period last year.

The company reported that its net income per common share, assuming dilution, was US$1.71 in Q3 2023, compared to US$2.70 in Q3 2022.

For the quarterly period that ended on September 30, 2023, the company witnessed a 9.4% decrease, based on reported figures, in its total net sales, which amounted to US$2.1 billion compared to US$2.3 billion in Q3 2022.

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

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

However, Avery’s Solutions Group segment recorded net sales of US$642.3 million in Q3 2023, representing a 3.1% increase from US$623.1 million in the same quarter of the previous year.

This increase in sales for the solutions group was primarily due to high single-digit growth, based on organic results, in high-value categories.

Avery’s total adjusted earnings before interest, taxes, depreciation, and amortization stood at US$328.3 million, compared to US$360.4 million in Q3 2022.

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

Silgan’s net sales drop by 9% in Q3 of 2023

Meanwhile, Silgan Holdings, a sustainable rigid packaging company, reported total sales of US$1.80 billion in the third quarter (Q3) of the financial year 2023 (FY23), which is a 9% decrease from the US$1.97 billion recorded in the same period in FY22.

Net sales for the company’s Dispensing and Specialty Closures segment dropped by 3% to US$559.1 million, while sales for its Metal Containers and Custom Containers decreased by 10% and 18% respectively in Q3 FY23.

Silgan reported a net income of US$110.6 million in Q3 FY23, a decrease from US$138.7 million in the same quarter of the previous year.

The earnings per diluted share for the period ending September 30, 2023, were listed as US$1.02 in Q3 FY23, compared to US$1.25 in Q3 FY22.

The company’s income before interest and income taxes for the quarter was US$194.1 million, a decrease of US$25.3 million compared to US$219.4 million in the corresponding period in FY22.

For the full year 2023, the company has revised its expected adjusted net income per diluted share forecast. The new range is now US$3.30 to US$3.40 which is lower than the previous guidance range of US$3.40 to US$3.60.

In the fourth quarter of 2023, Silgan Holdings anticipates its adjusted net income per diluted share to be in the range of US$0.55 to US$0.65.

Metsä Group reports 26% decline in sales in Q3 2023

Metsä Group has reported total sales of €479 million (US$506m) in the third quarter (Q3) of 2023, representing a 26% decline from €647.3 million (US$684.81m) in Q3 2022.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for Q3 of this year stood at €21.1 million (US$22.32m), representing a decline of 88% from €177.1 million (US$187.36m) in the same quarter of the previous year.

In Q3 2023, operating results decreased by 97.9% to €3.1 million (US$3.28m) from €153.4 million (US$162.29m) in the same quarter last year.

The company’s comparable operating result also decreased by 96.3% from €152.5 million (US$161.34m) in Q3 2022 to €5.5 million (US$5.82m) in Q3 2023.

The company’s pre-tax result in Q3 2023 was €4.3 million (US$4.55m) compared to €152.4 million (US$161.23m) in Q3 2022. In the latest quarter, the comparable pre-tax result was €6.7 million (US$7.09m) compared to €151.6 million (US$160.39m) in the same quarter of the previous year.

Sales for the year-to-date period (between January and September 2023) were also down by 19.1% to €1.51 billion (US$1.60bn) from €1.87 billion (US$1.98bn) recorded in last year’s Q1-Q3 period.

Metsä forecasts that its comparable operating result for the last quarter of the year (October to December 2023) will be at the same level as the current quarter.