Business Analysis of Avery Dennison

 Analyze Historical Performance, Strategic Priorities, And Business Improvement Opportunities of Avery Dennison

AVERY DENNISON

Business Overview

Avery Dennison Corporation produces and sells pressure-sensitive materials worldwide. The company's Label and Graphic Materials segment offers pressure-sensitive labeling materials; packaging materials and solutions; roll-fed sleeves; engineered films; graphic imaging media; and reflective materials under the Fasson, JAC, and Avery Dennison brands. It serves label converters, package designers, packaging engineers and manufacturers, industrial and sign manufacturers, printers, distributors, designers, advertising and government agencies, and graphics vendors. Its Retail Branding and Information Solutions segment designs, manufactures, and sells various branding and information solutions, including creative services, brand embellishments, graphic tickets, tags and labels, sustainable packaging, inventory visibility and loss prevention solutions, data management services, price tickets, printers and scanners, radio-frequency identification inlays and tags, and brand protection and security solutions. This segment serves apparel and footwear brands; manufacturers and retailers; food service, grocery, and pharmaceutical supply chains; consumer goods brands; automotive manufacturers; and transportation companies. The company's Industrial and Healthcare Materials segment offers pressure-sensitive tapes; diaper tapes and closures; fasteners; skin-contact adhesives; surgical, wound care, ostomy, and securement products; and medical barrier films under the Fasson, Avery Dennison, and Vancive brand names. This segment serves tape converters, original equipment and original design manufacturers, construction firms, personal care product manufacturers, manufacturers and retailers, and medical device manufacturers. It also offers cable harnessing and insulation tapes. The company was formerly known as Avery International Corporation and changed its name to Avery Dennison Corporation in 1990. The company was founded in 1935 and is headquartered in Glendale, California.

Avery Dennison

Avery Dennison


R&P Rank: 439
Sector: Industrial Goods & Services
Industry:Containers & Packaging
H.Q Location:California
Website: www.averydennison.com
Company Address:
207 GOODE AVENUE, GLENDALE CA 91203
Ph:626-304-2000

Business Analysis of Avery Dennison

The Industrial Goods & Services Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how Avery Dennison compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by Avery Dennison to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.

Here is the performance snapshot of Avery Dennison with an interactive chart.

  1. Revenue Growth: Avery Dennison reported a revenue growth of 2.0% year-on-year during 2016. Containers & Packaging Industry grew at 2.9% in the same period
  2. COGS share of Revenues: As a percentage of revenue, Avery Dennison spent 72.1% of its total revenues on COGS. Containers & Packaging industry average (COGS share of revenue) in the same period was 77.3%
  3. R&D share of Revenues: Avery Dennison R&D share of Revenues details are not available because either company does not share the data or we do not have it
  4. SG&A share of Revenues: As a percentage of revenue, Avery Dennison spent 18.0% of its total revenues on Sales, Marketing, and General Administration (SG&A). Containers & Packaging industry average SG&A spending in the same period was 11.5%
  5. Inventory share of Revenues: As a percentage of revenue, Avery Dennison spent 8.5% of its total revenues on Inventories. Containers & Packaging industry average Inventory spending in the same period was 12.3%
  6. Accounts Payable share of Revenues: As a percentage of revenue, Avery Dennison invested 13.8% of its total revenues on Accounts Payable (A/P) Containers & Packaging industry average Accounts Payable investment in the same period was 13.1%
  7. Accounts Receivable share of Revenues: As a percentage of revenue, Avery Dennison invested 16.4% of its total revenues on Accounts Receivable (A/R). Containers & Packaging industry average Accounts Receivable investment in the same period was 12.9%
  8. PP&E share of Revenues: As a percentage of revenue, Avery Dennison invested 15.0% of its total revenues on Property, Plants, and Equipments (PP&E). Containers & Packaging industry average PPE investment in the same period was 42.4%
  9. Intangibles share of Revenues: As a percentage of revenue, Avery Dennison invested 14.1% of its total revenues on Intangibles. Containers & Packaging industry average Intangibles investment in the same period was 32.5%
  10. Net Margins: Avery Dennison Net Margins in the year 2016 were 5.3%. Containers & Packaging industry average Net Margins in the same period were 3.4%

Sector and Industry Association of Avery Dennison

For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.

Avery Dennison is associated with Industrials Sector Group, Industrial Goods & Services Sector, and Containers & Packaging Industry.

Industrial Goods & Services sector is comprised of the following industries: Industrial Conglomerates; Industrial Machinery; Electrical Components & Equipment; Electronic Equipment & Parts; Containers & Packaging. The definitions for each of the industries is as follows:

  • Industrial Conglomerates industry includes Industrial companies engaged in three or more classes of business within the Industrial industry that differ substantially from each other.
  • Industrial Machinery industry includes designers, manufacturers, distributors and installers of industrial machinery and factory equipment, such as machine tools, lathes, presses and assembly line equipment. It also includes makers of pollution control equipment, castings, pressings, welded shapes, structural steelwork, compressors, pumps, bearings, elevators and escalators.
  • Electrical Components & Equipment industry consists of manufacturers and distributors of electrical parts for finished products, such as printed circuit boards for radios, televisions and other consumer electronics. It also includes makers of cables, wires, ceramics, transistors, electric adapters, fuel cells and security cameras. Manufacturers of Electric motors and generators and mechanical motion control products are also part of this industry.
  • Electronic Equipment & Parts industry includes companies offering Manufacturing and Design services for Engineered Components and Products used in different industries. Companies providing Laser-based manufacturing products are part of this industry.
  • Containers & Packaging industry includes producers and distributors of cardboard, bags, boxes, cans, drums, bottles, jars and glass used for packaging. Specialty Packaging Products and Pressure-Sensitive Materials producers are also part of this industry.

Industry Ranking of Avery Dennison

With $6.1 billion revenues, Avery Dennison ranked number 9 of all the companies in the US Containers & Packaging industry. There were a total of 35 public companies in the US Containers & Packaging industry that had revenues greater than $50 million during 2016.

The top-10 companies in the US Containers & Packaging industry by revenues during 2016 were:

  1. International Paper ($21.1 billion)
  2. WestRock ($14.2 billion)
  3. Ball ($9.1 billion)
  4. Veritiv ($8.3 billion)
  5. Crown Holdings ($8.3 billion)
  6. Sealed Air ($6.8 billion)
  7. Owens-Illinois ($6.7 billion)
  8. Berry Plastics Group ($6.5 billion)
  9. Avery Dennison ($6.1 billion)
  10. Packaging Corporation Of America ($5.8 billion)

Business Model Analysis (BMA) Framework

We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.

Next Steps

  • Conduct a holistic benchmarking; to identify and target additional sources of value
  • Get in touch with us to learn more about Business Model Analysis Framework
  • Get free data, charts, and analysis of Avery Dennisonand its peers on select key performance indicators by clicking the reports provided below

Industry Peers and Competitors of avery-dennison

Sealed Air (SEE) Business Analysis – Analyze Historical Performance, Strategic Priorities,...

Sealed Air Corp with $7 billion revenues in the year 2016 was the number 6 Containers & Packaging company. Read this report to know the top competitors of Sealed Air and identify growth and cost optimization opportunities of Sealed Air

Owens-Illinois (OI) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Owens-Illinois Inc with $7 billion revenues in the year 2016 was the number 7 Containers & Packaging company. Read this report to know the top competitors of Owens-Illinois and identify growth and cost optimization opportunities of Owens-Illinois

Berry Plastics Group (BERY) Business Analysis – Analyze Historical Performance, Strategic...

Berry Plastics Group Inc with $6 billion revenues in the year 2016 was the number 8 Containers & Packaging company. Read this report to know the top competitors of Berry Plastics Group and identify growth and cost optimization opportunities of Berry Plastics Group

Packaging Corporation Of America (PKG) Business Analysis – Analyze Historical Performance,...

Packaging Corporation Of America with $6 billion revenues in the year 2016 was the number 10 Containers & Packaging company. Read this report to know the top competitors of Packaging Corporation Of America and identify growth and cost optimization opportunities of Packaging Corporation Of America

Domtar (UFS) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Domtar Corp with $5 billion revenues in the year 2016 was the number 11 Containers & Packaging company. Read this report to know the top competitors of Domtar and identify growth and cost optimization opportunities of Domtar

Sonoco (SON) Business Analysis – Analyze Historical Performance, Strategic Priorities, And...

Sonoco Products Co with $5 billion revenues in the year 2016 was the number 12 Containers & Packaging company. Read this report to know the top competitors of Sonoco and identify growth and cost optimization opportunities of Sonoco

Revenues Analysis

Avery Dennison (AVY) Revenues And Revenue Growth From 2012 To 2016

This report provides the last five years revenues and revenue growth of Avery Dennison Corp (AVY) from 2012 to 2016. Avery Dennison generated a total of $6.1 billion revenues during 2016. Avery Dennison reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Avery Dennison (AVY) Revenues And Revenue Growth From 2002 To 2016

This report provides the last fifteen years revenues and revenue growth of Avery Dennison Corp (AVY) from 2002 to 2016. Avery Dennison generated a total of $6.1 billion revenues during 2016. Avery Dennison reported a revenue growth of 2% year-over-year during 2016. The revenues and the revenue growth correspond to the fiscal year ending in December.

Avery Dennison (AVY) Revenue Growth Comparison With Industry Growth From 2012...

This report provides a comparison of Avery Dennison Corp (AVY) revenue growth with Containers & Packaging industry growth during the last five years from 2012 to 2016. Avery Dennison reported a revenue growth of 2% year-over-year during 2016. The Containers & Packaging industry growth was 2.9% year-over-year during 2016. Avery Dennison growth was slower than the industry during 2016.