Dear reader,

As we come to the end of the first quarter of 2023, It gives me great pleasure to share with you this year’s first edition of our Insight Quarterly. This edition highlights our participation at NRF Retail’s Big Show in January, atma.io’s Spring Release announcement, insights into our preparation for the EU Digital Product Passports (DPP) initiative, and some of the investments we are making in sustainability.

Fourth quarter and full year 2022 results
Avery Dennison delivered strong results in 2022. Our performance came amidst a challenging economic environment and results showed volume declines in the fourth quarter due to significant inventory build-up downstream. Despite the challenges in the macro environment, we remain well-positioned to continue our long track record of earnings growth in 2023, including accelerating growth in Intelligent Labels across multiple sectors.

See Beyond at NRF and EuroShop 2023
We look back at a very successful NRF and EuroShop 2023. After two years away due to the pandemic, we were able to make our comeback at NRF Retail’s Big Show with this year’s theme ‘See Beyond’. Our unique capabilities at the intersection between the physical and digital world, positions us well as a driving force behind digital Identification solutions to unlock more sustainable, effective and efficient retail supply chains. It was great to connect with the ecosystem face-to-face in both NYC and Düsseldorf, and I want to thank our customers and partners for taking the time to stop by and connect with us. The year is only just getting started, if you’d like to find out more about our upcoming events in Q2 visit our website.

Further expansions of our production capacity
Earlier this quarter, we publicly announced our investment to expand our production capacity in the Americas with a new manufacturing site in Querétaro, Mexico. This investment is a key strategic priority for us this year and will allow Avery Dennison to continue to drive the growth of digital identification solutions and RFID across multiple segments. The new facility is expected to be operational by the end of the first quarter of 2024 and will be the company's largest RFID plant globally. This expansion aims to meet the accelerating global growth demands and will complement Avery Dennison’s continued investment in our state of the art sites in The Americas, including, Fletcher North Carolina in US, Juarez in Mexico and Vinhedo (SP) in Brazil. 

As we navigate 2023, we are excited about the developments and the possibilities ahead to create true value for you. I hope you enjoy this edition of Insights Quarterly. As always, if you have any feedback or questions, please don't hesitate to reach out to us here.

Sincerely,
 

Francisco Melo
Senior Vice President & General Manager, Avery Dennison Smartrac