艾利丹尼森 (AVY) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. (Operator Instructions)

女士們先生們，謝謝你們的支持。（操作員說明）

Welcome to Avery Dennison's earnings conference call for the second quarter ended on June 29, 2024. This call is being recorded and will be available for replay after 4:00 PM Eastern time today until midnight Eastern Time, July 30, 2024. To access the replay, please dial 1 (800) 770-2030 or 1 (609) 800-9909 for international callers. The conference ID number is 5855706

歡迎參加艾利丹尼森於 2024 年 6 月 29 日結束的第二季財報電話會議。本次通話正在錄音，並將在東部時間今天下午 4 點至東部時間 2024 年 7 月 30 日午夜之後重播。如需觀看重播，請撥打 1 (800) 770-2030 或國際長途電話 1 (609) 800-9909。會議ID號碼為5855706

I would now like to turn the call over to John Eble, Avery Dennison's Vice President of Finance and Investor Relations. Please go ahead, sir.

我現在想將電話轉給艾利丹尼森財務和投資者關係副總裁 John Eble。請繼續，先生。

Thank you, Angela. Please note that throughout today's discussion will be making references to non-GAAP financial measures. The non-GAAP measures that we use are defined qualified and reconciled from GAAP on schedules A4 to A9 of the financial statements accompanying today's earnings release.

謝謝你，安吉拉。請注意，今天的整個討論將提及非公認會計準則財務指標。我們使用的非 GAAP 衡量標準是根據 GAAP 定義的，並根據今天發布的財務報表附表 A4 至 A9 進行了調整。

We remind you that we'll make certain predictive statements that reflect our current views and estimates about our future performance and financial results. These forward-looking statements are made subject to the Safe Harbor statement included in today's earnings release.

我們提醒您，我們將做出某些預測性陳述，以反映我們對未來業績和財務表現的當前看法和估計。這些前瞻性陳述是根據今天的收益發布中包含的安全港聲明做出的。

On the call today are Deon Stander, President and Chief Executive Officer; and Gregory Lovins, Senior Vice President and Chief Financial Officer. I'll now turn the call over to Deon.

今天參加電話會議的是總裁兼執行長 Deon Stander；葛瑞格里‧洛文斯 (Gregory Lovins)，資深副總裁兼財務長。我現在將把電話轉給 Deon。

Thanks, John, and hello, everyone. We delivered another strong quarter with EPS of $2.42 in the second quarter above our expectations and are raising our full year guidance. We now expect earnings of $9.30 to $9.50 per share for the year and are targeting roughly 20% earnings growth, compared to prior year.

謝謝約翰，大家好。我們再次實現了強勁的季度業績，第二季每股收益為 2.42 美元，超出了我們的預期，並上調了全年指引。我們目前預計今年每股收益為 9.30 美元至 9.50 美元，並目標與去年相比收益成長約 20%。

Materials Group continued to demonstrate its resilience in the second quarter, again, delivering significant volume and margin expansion as we lapped the impact of downstream inventory destocking last year and drive productivity across the business.

材料集團在第二季度繼續展現其韌性，隨著我們克服了去年下游庫存去庫存的影響並提高了整個業務的生產力，銷量和利潤率大幅增長。

Label volumes in Europe and Asia were above our expectations while slightly below expectations for North America. Broadly, retail volumes remained soft relative to long-term trends as consumers continue to deal with the cumulative effects of high inflation and we are not anticipating this to change in the second half of the year.

歐洲和亞洲的標籤銷售量高於我們的預期，而北美的標籤銷售量略低於預期。總體而言，由於消費者持續應對高通膨的累積影響，零售量相對於長期趨勢仍然疲軟，我們預計這種情況不會在今年下半年改變。

Solutions Group delivered strong top line growth in the second quarter, driven by both the base and high-value categories and expanded margins. The retail apparel channel was stronger than we expected despite retailers and brands remaining cautious in their near term sourcing plans. Most have now met their targeted inventory levels falling more than a year of destocking. And volume has normalized quicker than we anticipated for the upcoming back-to-school season.

在基本和高價值類別以及擴大的利潤率的推動下，解決方案集團第二季度實現了強勁的營收成長。儘管零售商和品牌對其近期採購計劃保持謹慎，但零售服裝通路仍強於我們的預期。經過一年多的去庫存，大多數公司現在已經達到了目標庫存水準。對於即將到來的返校季，成交量恢復正常的速度比我們預期的要快。

Year to date, enterprise wide Intelligent Labels grew mid to high teens in the second quarter. Strong growth in general, retail and logistics continued. While apparel was also strong as customers normalized order volumes and new rollouts continued.

今年迄今為止，第二季度企業範圍內的智慧標籤成長了中位數至高位數。零售和物流業整體強勁成長。隨著客戶訂單量正常化和新產品的推出持續，服裝也表現強勁。

For the year, we are now targeting to deliver more than 20% volume growth and mid-teens sales growth in our Intelligent Labels platform, driven by a rebound in apparel and adoption in new categories. We anticipate sales growth in the third quarter will be similar to the rate we delivered in the first half.

今年，我們的目標是在服裝反彈和新類別採用的推動下，智慧標籤平台銷量成長 20% 以上，銷售額成長 10% 以上。我們預計第三季的銷售成長將與上半年的成長相似。

As for the fourth quarter, while likely a record revenue quarter, we expect growth in the quarter will be lower than previously anticipated, primarily due to the timing of customer rollouts. As we have shared in the past, new customer rollouts can be uneven, particularly new categories, as well as by comparison to initial volume builds for new program adoption in prior years.

至於第四季度，雖然可能是創紀錄的收入季度，但我們預計該季度的成長將低於先前的預期，這主要是由於客戶推出的時間。正如我們過去所分享的那樣，新客戶的推出可能不平衡，尤其是新類別，以及與前幾年採用新計劃的初始​​數量相比。

I have high conviction in the significant long-term growth of our Intelligent Labels platform as we connect physical items with digital identities. In the near term, we are focused on accelerating adoption in key verticals such as food and logistics.

當我們將實體物品與數位身分連接起來時，我對我們的智慧標籤平台的顯著長期成長充滿信心。短期內，我們的重點是加快食品和物流等關鍵垂直產業的採用。

Overall, the ability of our solutions to help address inventory challenges such as labor efficiency, waste transparency and consumer connection in very large volume categories like logistics, retail and food is increasingly resonating with customers. Key pilots and rollouts are delivering significant value and compelling proof points for broader segment adoption.

總體而言，我們的解決方案幫助解決物流、零售和食品等大批量類別中的勞動力效率、廢物透明度和消費者連接等庫存挑戰的能力越來越引起客戶的共鳴。關鍵的試點和推廣為更廣泛的細分市場採用提供了巨大的價值和令人信服的證據。

We continue to invest to capture the significant opportunity ahead as we grow the size of the overall industry further advancing our leadership position at the intersection of the physical and digital.

隨著整個產業規模的擴大，我們將繼續投資，以抓住未來的重大機遇，進一步提升我們在實體和數位交叉領域的領導地位。

Stepping back, the underlying fundamentals of our business are strong. We're exposed to diverse and grain markets with clear catalysts for long-term growth. We are industry leaders in our primary businesses with clear competitive advantages in scale and innovation. We have a clear set of strategies that we continue to evolve over time and are key to our success over the long term and across a wide range of business cycles.

退一步來說，我們業務的基本面是強勁的。我們面臨多元化的穀物市場，具有明顯的長期成長催化劑。我們的主營業務處於行業領先地位，在規模和創新方面具有明顯的競爭優勢。我們擁有一套清晰的策略，並隨著時間的推移而不斷發展，這是我們在廣泛的商業週期中長期成功的關鍵。

Those strategies are to drive outsized growth in high-value categories, grow profitably in our base businesses, lead at the intersection of the physical and digital, effectively allocate capital and focus relentlessly on productivity and lead in an environmentally and socially responsible manner.

這些策略是推動高價值類別的大幅成長，在我們的基礎業務中實現盈利增長，在實體和數位交叉領域發揮領導作用，有效分配資本，不懈地關註生產力，並以對環境和社會負責的方式發揮領導作用。

We remain confident that our strategies, along with our team's ability to execute in dynamic environments will enable us to continue to generate superior value creation through a balance of GDP-plus growth and top quartile returns over the long term.

我們仍然相信，我們的策略以及團隊在動態環境中的執行能力將使我們能夠透過長期 GDP 成長和最高四分之一回報的平衡，繼續創造卓越的價值。

In summary, we delivered another strong quarter and raised our guidance for the year to deliver nearly 20% earnings growth in 2024 and while we are increasing our outlook for the year, the environment remains uncertain and warrant some degree of caution as we move through the second half.

總而言之，我們實現了又一個強勁的季度業績，並上調了今年的指導，以實現2024 年盈利增長近20%，雖然我們正在提高今年的前景，但環境仍然存在不確定性，在我們度過難關時需保持一定程度的謹慎。

I want to thank our entire team for their continued resilience, focus on excellence and commitment to addressing the unique challenges at hand.

我要感謝我們整個團隊的持續韌性、對卓越的關注以及對解決當前獨特挑戰的承諾。

With that, I'll hand the call over to Greg.

這樣，我就把電話轉給格雷格。

Thanks, Deon, and hello, everybody. In the second quarter, we delivered adjusted earnings per share of $2.42, up 6% sequentially and up 26% compared to prior year, driven by benefits from higher volume and productivity. Compared to prior year, sales were up 8% ex. currency and 7% on an organic basis. As higher volume was partially offset by deflation related price reductions.

謝謝，德昂，大家好。在銷售和生產力提高的推動下，第二季我們的調整後每股收益為 2.42 美元，比上一季成長 6%，比去年同期成長 26%。與去年同期相比，銷售額成長了 8%（不含稅）。貨幣和有機基礎上的 7%。由於通貨緊縮相關的價格下降部分抵消了銷售量的增加。

Adjusted EBITDA margin was strong at 16.4% in the quarter, up 170 basis points compared to prior year, with adjusted EBITDA dollars up 19% compared to prior year and up 5% sequentially. And we generated strong adjusted free cash flow of $201 million in the first half of the year, up $137 million compared to prior year.

本季調整後 EBITDA 利潤率為 16.4%，較去年同期成長 170 個基點，調整後 EBITDA 美元較去年同期成長 19%，較去年同期成長 5%。今年上半年，我們產生了 2.01 億美元的強勁調整後自由現金流，比去年增加了 1.37 億美元。

And our balance sheet is strong with a net debt to adjusted EBITDA ratio at quarter end of 2.2 and we continued to execute our disciplined capital allocation strategy, including investing in organic growth and acquisitions, while continuing to return cash to shareholders.

我們的資產負債表強勁，季度末淨負債與調整後 EBITDA 比率為 2.2，我們繼續執行嚴格的資本配置策略，包括投資於有機成長和收購，同時繼續向股東返還現金。

In the first six months of the year, we returned $177 million to shareholders through the combination of share repurchases and dividends. In April, we announced a 9% increase to the company's quarterly dividend to $0.88 per share. A dividend we've now grown 10% annually over the past decade.

今年前六個月，我們透過股票回購和股利結合的方式向股東返還了 1.77 億美元。4 月份，我們宣布將公司季度股息提高 9%，達到每股 0.88 美元。過去十年中，我們的股息每年增長 10%。

Turning to the segment results for the quarter, Materials Group sales were up 6% ex. currency and on an organic basis compared to prior year, driven by low double digit volume growth, including a slight customer pull forward in Europe and Asia, partially offset by deflation related price reductions.

談到本季的部門業績，材料集團的銷售額成長了 6%（不含稅）。與去年相比，在有機基礎上，兩位數的銷售成長推動了這一成長，其中包括歐洲和亞洲客戶的小幅成長，但部分被通貨緊縮相關的價格下降所抵消。

Looking at labor materials, organic volume trends versus prior year in the quarter. Mature markets were up significantly as we continued to lap downstream customer inventory destocking that took place last year. And as you'll recall, destocking in Europe was a bit more exaggerated than in North America, resulting in a larger rebound this year.

看看本季的勞動力材料、有機數量與去年同期的趨勢。隨著我們繼續跟進去年下游客戶庫存去庫存的情況，成熟市場大幅上漲。正如您所記得的那樣，歐洲的去庫存比北美更加誇張，導致今年的反彈幅度更大。

Europe was up more than 25% and slightly ahead of our expectations, and North America was up high single digits. Emergent regions delivered strong volume growth above our expectations, with Asia up mid-single digits with particular strength in India and ASEAN and Latin America, up mid-teens.

歐洲上漲超過 25%，略高於我們的預期，北美上漲高個位數。新興地區的銷售成長強勁，超出了我們的預期，其中亞洲成長了中個位數，印度、東協和拉丁美洲尤其強勁，成長了中個位數。

Compared to prior year, Graphics and Reflective sales were up low single digits organically. Performance Tapes and Medical was down low single digits organically as strength in industrial categories was more than offset by a decline in medical and personal care, partially driven by inventory destocking in those categories.

與去年相比，圖形和反光銷售額有機成長了低個位數。高性能膠帶和醫療產品有機地下降了低個位數，因為工業類別的強勢被醫療和個人護理品的下降所抵消，部分原因是這些類別的庫存去庫存。

Materials Group delivered a strong adjusted EBITDA margin of 17.9% in the second quarter, up more than two points compared to prior year, driven by higher volume and benefits from productivity partially offset by higher employee related costs.

材料集團第二季調整後 EBITDA 利潤率強勁，達到 17.9%，比上年同期增長超過兩個百分點，這主要是由於產量增加以及生產力帶來的好處被員工相關成本上升部分抵消。

Regarding raw material cost globally, we saw low single digit inflation sequentially in the second quarter. The increase was driven by higher paper prices, primarily in Europe, we have been addressing the cost increases through a combination of product reengineering and pricing actions, as we discussed last quarter.

就全球原物料成本而言，我們在第二季連續看到較低的個位數通膨。這一增長是由紙張價格上漲推動的，主要是在歐洲，我們一直在透過產品重新設計和定價行動相結合來解決成本增加問題，正如我們上季度討論的那樣。

And we've continued to see paper prices increase as we move through the second quarter and are expecting modest inflation sequentially in the third quarter. We are monitoring this dynamic closely, and we'll continue to evaluate further pricing actions are appropriate as we move to the back half.

隨著第二季的進行，我們繼續看到紙張價格上漲，並預計第三季將出現溫和的通膨。我們正在密切關注這一動態，並將在下半年繼續評估進一步的定價行動是否合適。

Given this dynamic and the typical volume seasonality from Q2 to Q3, we expect materials group margins will sequentially moderate in the third quarter.

鑑於這種動態以及第二季至第三季的典型銷售季節性，我們預計材料集團的利潤率將在第三季依序放緩。

Shifting now to Solutions Group sales were up 11% on organic basis and 14% ex currency, with high-value solutions up low double digits. In base solutions, up mid-to-high teens as apparel volume normalized ahead of expectations.

現在轉向解決方案集團，銷售額有機成長了 11%，扣除匯率後成長了 14%，其中高價值解決方案實現了低兩位數的成長。在基本解決方案中，隨著服裝銷售正常化，超出預期，價格上升到中高點。

Year-to-date enterprise wide Intelligent Labels sales were up mid-to-high teens, with strong growth in apparel and non-apparel categories, particularly logistics and general retail. Solutions Group adjusted EBITDA margin of 16.8% was up 100 basis points compared to prior year, driven by benefits from higher volume and productivity, partially offset by higher employee related costs and continued growth investments.

今年迄今為止，企業範圍內的智慧標籤銷售額增長了中高位，其中服裝和非服裝類別（尤其是物流和一般零售）增長強勁。解決方案集團調整後的EBITDA 利潤率為16.8%，與上年相比增長了100 個基點，這得益於產量和生產率提高帶來的效益，但部分被員工相關成本上升和持續增長的投資所抵消。

Margin improved 70 basis points sequentially, and we anticipate further sequential margin improvement in the second half, driven largely by productivity initiatives and higher volume.

利潤率環比提高了 70 個基點，我們預計下半年利潤率將進一步環比提高，這主要是由於生產力措施和銷售增加的推動。

Now shifting to our outlook for 2024, we have raised our guidance for adjusted earnings per share to be between $9.30 and $9.50, a $0.15 increase to the midpoint of the range despite a roughly $0.05 headwind from currency translation, which is largely in the second half.

現在轉向我們對2024 年的展望，我們將調整後每股收益的指導上調至9.30 美元至9.50 美元之間，儘管貨幣換算帶來約0.05 美元的阻力（主要是在下半年），但該範圍的中點數增加了0.15 美元。

At the midpoint, our outlook reflects 19% growth versus prior year. This increase reflects our strong second quarter and a modest increase to our operational outlook for the second half. As you recall, our outlook includes four key drivers of earnings growth for 2024, which are all on track.

中位數來看，我們的預期較去年增長 19%。這一成長反映了我們第二季度的強勁表現以及我們對下半年營運前景的適度成長。正如您所記得的，我們的展望包括 2024 年獲利成長的四個關鍵驅動因素，這些驅動因素都已步入正​​軌。

The normalization of label volume early in the year. The normalization of apparel volume midyear, significant growth in Intelligent Labels and ongoing productivity actions. We've outlined additional key contributing factors to our guidance on slide 12 of our supplemental presentation materials.

年初標籤數量實現正常化。年中服裝產量正常化、智慧標籤顯著成長以及持續的生產力行動。我們在補充簡報資料的幻燈片 12 上概述了對我們的指導的其他關鍵影響因素。

In particular, and focusing on the changes from April, we estimate roughly 4.5% organic sales growth, 50 basis points higher than our previous outlook due to a slightly better volume and mix than previously anticipated.

特別是，重點關注 4 月以來的變化，我們預計有機銷售成長約為 4.5%，比我們之前的預期高出 50 個基點，因為銷量和組合略好於先前的預期。

We continue to expect high single digit volume growth, partially offset by deflation related price reductions. We expect incremental savings from restructuring actions of more than $50 million, up $5 million from our previous outlook. And we now anticipate a headwind from currency translation of roughly $10 million in operating income for the year, compared to our previous outlook of a roughly $5 million headwind.

我們繼續預期銷售量將出現高個位數成長，但部分將被通貨緊縮相關的價格下降所抵銷。我們預計重組行動帶來的增量節省將超過 5,000 萬美元，比我們先前預期的增加 500 萬美元。我們現在預計今年營業收入將因貨幣換算而受到約 1000 萬美元的阻力，而我們先前的預期約為 500 萬美元。

As you may recall, we've historically seen lower sequential volumes seasonally in the third quarter, driven by the August holiday period in Europe and the timing of back-to-school shipments in apparel, which historically has resulted in a mid-single digit sequential decline of EPS in Q3 from Q2. And we anticipate Q3 EPS this year will be consistent with that historical pattern.

您可能還記得，我們​​在歷史上看到第三季的季節性連續銷量較低，這是由於歐洲八月假期和服裝返校發貨時間的推動，這在歷史上導致了中個位數的出貨量第三季每股盈餘較第二季連續下降。我們預計今年第三季每股收益將與歷史模式保持一致。

In summary, we delivered another strong quarter, increased our outlook for earnings growth and remain confident in our ability to continue to deliver exceptional value through our strategies for long term, profitable growth and disciplined capital allocation. And we look forward to sharing more about our long-term objectives and strategies with all of you at our Investor Day in September and hope to see you there.

總而言之，我們再次實現了強勁的季度業績，提高了獲利成長前景，並對我們透過長期獲利成長和嚴格資本配置策略持續創造卓越價值的能力充滿信心。我們期待在九月的投資者日與大家分享更多關於我們的長期目標和策略，並希望在那裡見到您。

And now we'll open up the call for your questions.

現在我們將開放電話詢問您的問題。

(Operator Instructions)

（操作員說明）

McNulty John, BMO Capital Markets.

麥克納爾蒂約翰，BMO 資本市場。

Thanks for taking my question. I guess question would be on the Solutions business and in particular, I guess tied to the Intelligent Labels side. So obviously you pulled down or it looks like the revenue contribution for this year. And it sounds like a lot of it is going to be tied to just the timing of rollout. So does that just mean something got pushed out to the beginning of next year or you're just not seeing the pilot programs necessarily moved to the next step as quickly as you were thinking. So maybe you can give us a little bit of color on that.

感謝您提出我的問題。我想問題是關於解決方案業務，特別是與智慧標籤方面有關。很明顯，你拉低了或看起來像是今年的收入貢獻。聽起來很多都跟推出的時間有關。那麼，這是否僅僅意味著某些事情被推遲到明年初，或者您只是沒有看到試點計畫必然像您想像的那樣迅速進入下一步。也許你可以給我們一些關於這一點的資訊。

And then I guess the other question tied to that would just be around solutions margins. So if we go back to kind of the path of pre the destocking that we saw in the apparel markets, you were in the 18% changed kind of EBITDA margin range. You're obviously coming in below that right now. Any reason now that it looks like some of that destocking is over that to think that you shouldn't be able to get back into that 18%-plus range as we kind of look out over the next 12 months?

然後我想與之相關的另一個問題只是圍繞解決方案的利潤。因此，如果我們回到我們在服裝市場看到的去庫存前的路徑，就會發現 EBITDA 利潤率範圍發生了 18% 的變化。你現在顯然低於這個水平。現在看起來部分去庫存已經結束，有什麼理由認為你不應該能夠回到 18% 以上的範圍，因為我們在未來 12 個月裡有所關注？

Yes.

是的。

Hi, John. This is Deon. Thanks for the question. I'll handle the first part and I'll ask Greg to comment on the second. I will just say that our original outlook for the year, when we planned the year called for lower revenue growth relative to the volume growth that we planned. And we are now targeting, as I said in my notes, a 20% volume growth this year with mid-teens revenue growth.

嗨，約翰。這是德翁。謝謝你的提問。我將處理第一部分，並請格雷格對第二部分發表評論。我只想說，當我們計劃今年時，我們對今年的最初展望要求相對於我們計劃的銷售成長而言，收入成長較低。正如我在筆記中所說，我們現在的目標是今年銷售成長 20%，營收成長在 10% 左右。

We anticipate in Q3 that we're going to see a similar growth rate for revenue as we've seen in the first half of the year and now expect revenue growth in the fourth quarter to be lower than previously anticipated, largely on volume changes as it relates to customer rollout timing.

我們預計第三季的營收成長率將與上半年相似，現在預計第四季的營收成長將低於先前的預期，這主要是由於銷售量變化，它與客戶推出時間有關。

There's a small element, John also of mix. And you'll recall that we have different price points across different segments and products and use cases, but they all typically have the same margin profile, which I'll remind everyone, is still above the segment average.

有一個小元素，約翰也是混合的。您會記得，我們​​在不同的細分市場、產品和用例中具有不同的價格點，但它們通常都具有相同的利潤率，我要提醒大家的是，仍然高於細分市場的平均水平。

And then finally, there will also be some deflation related pricing impacts. I will say on that point that, if you recall, during 2022 and 2023 during the supply chain shortages, we did see inflation across the business, including an IL and which we are now addressing in the last few quarters of the year.

最後，也會產生一些與通貨緊縮相關的定價影響。關於這一點，我要說的是，如果您還記得，在2022 年和2023 年供應鏈短缺期間，我們確實看到了整個業務的通貨膨脹，包括IL，我們現在正在今年最後幾季解決這一問題。

If I turn to specifically, the customer rollout pieces, there are two elements to this. So this is one ongoing rollouts with the existing customers. And then also anticipated rollouts from pilots that have moved slightly in their timing and this is not unusual. We spoken in the past about when you have new adoptions in new categories, timing can tend to be uneven, move intra-quarter.

如果我具體轉向客戶推出部分，則有兩個要素。因此，這是一項針對現有客戶的持續推出。然後，預計試點計畫的推出時間也略有變化，這並不罕見。我們過去談過，當新類別有新的採用時，時間往往會不均勻，在季度內移動。

On our existing customers. There's two elements where we're seeing some volume impacts now as it relates to our existing customers with existing rollouts, one is the comparison with inventory builds in the launch phase in prior years. It's largely it’s a fourth quarter issue on logistics.

關於我們現有的客戶。我們現在看到一些數量影響的因素有兩個，因為它與我們現有客戶的現有推出有關，一是與前幾年啟動階段的庫存建設進行比較。這主要是第四季的物流問題。

And secondly, as our customers move through their adoption journey, taking into account things like new category adoptions, kind of mostly in general retail and also infrastructure readiness are they're ready to take on the next elements of their journey. And sometimes that's just a timing issue, and that's mostly in logistics.

其次，當我們的客戶經歷他們的採用之旅時，考慮到新類別採用等因素，主要是在一般零售和基礎設施準備方面，他們準備好接受旅程的下一個要素。有時這只是一個時間問題，而且主要是在物流方面。

I will say, John, that with all of our customers, whether they be in pilot trial or rollout, they're continuing to see significant value and returns on investment in leveraging this technology. And I would argue and having spoken to them that their conviction in the adoption, the technology is even higher. And then additionally, we continue to see real strength in our pipeline across all segments. Underpinning again, my conviction that this long term growth opportunities this platform is significant.

約翰，我要說的是，對於我們所有的客戶來說，無論他們是處於試點階段還是推出階段，他們都會繼續看到利用這項技術的巨大價值和投資回報。我認為，在與他們交談後，他們對採用這項技術的信心甚至更高。此外，我們繼續看到我們在所有領域的管道的真正實力。再次支撐我的信念是，這個平台的長期成長機會意義重大。

Thanks, Deon. And John, to answer your question on margins, I think as we've shown over the last couple of quarters, as the apparel segment or categories are normalizing, we've seen margins improve. We saw about a 70 basis points improvement here in Q2 versus Q1. I think I talked about in my prepared remarks in our slides, even that we expect that to continue improving as we move through the back half.

謝謝，德昂。約翰，回答你關於利潤率的問題，我認為正如我們在過去幾季所顯示的那樣，隨著服裝細分市場或類別的正常化，我們已經看到利潤率有所提高。我們看到第二季與第一季相比提高了約 70 個基點。我想我在幻燈片中準備好的發言中談到了這一點，甚至我們預計隨著後半部分的進行，這一點將繼續改善。

So the short answer is yes, we would expect to get back to those 18%-plus that we had, like you've mentioned a year or two years ago. And that's an area we'd like to get back to and we expect to be able to deliver as we said.

所以簡短的回答是肯定的，我們希望回到 18% 以上的水平，就像您在一兩年前提到的那樣。這是我們想要回到的領域，我們希望能夠像我們所說的那樣實現這一目標。

Ghansham Panjabi, Baird.

甘沙姆‧潘嘉比 (Ghansham Panjabi)，貝爾德 (Baird)。

Hey, guys, good morning. I guess, going back to the second quarter and some of the variances that drove the upside relative to your previous guide, -- was it as simple as just Europe and maybe apparel was a little bit better. And on the apparel improvement, how are you sort of disaggregating between some of the shipping challenges and some of the pull-forwards that we read about in the headlines and context of just the retailer earnings that have been out recently on the apparel side, just not showing any signs of real improvement.

嘿，夥計們，早安。我想，回到第二季度，以及相對於之前的指南而言，推動上漲的一些差異，是否像歐洲那麼簡單，也許服裝會好一點。關於服裝的改進，您如何區分一些運輸挑戰和我們在最近發布的服裝方面的零售商收益的頭條新聞和背景中讀到的一些前移，只是沒有顯示出任何真正改善的跡象。

Let me make deal that. At a high level, the variances are largely in our labels business from a volume perspective, largely in Europe and then from apparel, where we see sooner than expected normalization. That still will also continue during the second half of the year.

讓我來做個交易吧。從較高層面來看，從數量角度來看，差異主要在於我們的標籤業務，主要在歐洲，然後是服裝業務，我們看到服裝業務的正常化速度早於預期。這種情況在下半年仍將持續。

On apparel specifically, I think there's a couple of dynamics at play over here. Certainly, the macro environment still remains very uncertain. And the apparel is largely driven by consumer sentiment, which is not robust. It's also true that what we've seen more recently in discussion with our customers there is that their inventory levels are now at where they would need them to be off. This is after a year of continuous destocking, and we're starting now to see some degree of uptick in import volumes and typically our volumes precede those.

特別是在服裝方面，我認為這裡有一些動力在發揮作用。當然，宏觀環境仍然存在著很大的不確定性。服裝很大程度上是由消費者信心驅動的，而消費者信心並不強勁。確實，我們最近在與客戶的討論中看到，他們的庫存水準現在處於他們需要的水平。這是經過一年的持續去庫存之後，我們現在開始看到進口量出現一定程度的上升，而且通常我們的進口量先於進口量。

So our performance in Q2, which is slightly above expectation, would suggest we'd see more uptick in import volumes across the two segments across North America and Europe as we move forward. I think the only other piece I'd call out is that as always in apparel, you get a vast range of variances in terms of how customers do. Some of them are doing very well, some of them are not doing so well and that's probably reflected in some of the earnings releases that you've seen more recently.

因此，我們第二季的表現略高於預期，這表明隨著我們的前進，北美和歐洲兩個細分市場的進口量將出現更多成長。我認為我唯一要指出的另一點是，就像服裝領域一樣，顧客的行為方式有很大差異。其中一些做得很好，有些則做得不太好，這可能反映在您最近看到的一些收益發布中。

I think Ghansham just to answer the first part of your question, yes, the two big drivers of the beat in Q2 were the better performance in materials Europe as well as the apparel as the end just explained.

我認為 Ghansham 只是回答你問題的第一部分，是的，第二季度的兩大推動因素是歐洲材料和服裝的更好表現，正如最後所解釋的那樣。

George Staphos, Bank of America.

喬治‧斯塔福斯，美國銀行。

Hi. Thanks very much. Thanks for taking my question and good morning, everybody.

你好。非常感謝。感謝您提出我的問題，大家早安。

So my two-parter. One question on solutions. First of all, just piggybacking on the question that the Ghansham teed up. So from what your customers said or seeing was there any pull forward ahead of any potential tariff-related issues? Or do you think that's really was a non-event for you in the quarter? If you could provide any color there, and if you did just now I'd missed kind of the nuances there.

所以我的兩方。關於解決方案的一個問題。首先，只是藉用甘沙姆提出的問題。那麼，從您的客戶所說或看到的情況來看，在任何潛在的關稅相關問題之前是否有任何進展？或者您認為這對您來說在本季確實不是一件大事？如果你能在那裡提供任何顏色，如果你現在就提供了，我就會錯過那裡的細微差別。

And then the discussion that we've had and that you've just had as well on volume versus revenue growth and the implied sort of reduction in ASP, how much of that Deon is actually coming from just, hey, you're coming up learning curve, you're seeing improved manufacturing economics. You're passing that along because that's how you get adoption, help us parse that versus the other deflation that might be occurring off of the supply chain issues from a year and two ago. Thank you.

然後是我們和你們剛剛進行的關於銷售成長與收入成長以及 ASP 隱含的下降的討論，其中有多少 Deon 實際上來自，嘿，你來了學習曲線，你會看到製造經濟效益的改善。您之所以將其傳遞出去，是因為這就是您獲得採用的方式，幫助我們將其與一年兩年前供應鏈問題可能發生的其他通貨緊縮進行比較。謝謝。

Sure, George, I assume the second question relates more to IL as I'll address it that way. --

當然，喬治，我認為第二個問題更多地與 IL 有關，因為我將這樣解決它。--

On the first one, we've not necessarily seen any visible signs of apparel pull forward as a result of tariffs. I think there is clearly a lot of discussion amongst retailers as to what the likely outcome will be of a more tariff intensive future if that turns out to be the case.

對於第一個問題，我們不一定看到任何明顯的跡象表明服裝因關稅而增長。我認為零售商之間顯然有很多討論，如果事實果真如此，關稅更加密集的未來可能會產生什麼結果。

But at the moment, we've not seen anything you recall in the second quarter. What we did see was some degree of pull forward from the third quarter as it related more to the Red Sea shipping crisis that was happening with goods having to go round the Cape of Good Hope rather than go through the Sue Canal. There’s an element of that. But generally, when we look across it, we don't tend to see anything that suggests there's been some degree of pull forward there, maybe in tiny bits as well.

但目前，我們還沒有看到任何你記得的第二季的內容。我們確實看到第三季度出現了一定程度的提前，因為這與紅海航運危機有關，當時發生的貨物必須繞過好望角而不是通過蘇運河。其中有一個因素。但一般來說，當我們審視它時，我們往往看不到任何表明那裡存在某種程度的推動力的東西，也許也是很小的推動力。

I think our observation of where we've been in the second quarter's releases that it's just been slightly more, a slightly quicker normalization of volume in apparel than we'd anticipated. We said it would start from the second half of the year, and we said clearly seen a little bit earlier than that.

我認為，根據我們對第二季發布情況的觀察，服裝銷售正常化程度比我們預期的要多一些、快一些。我們說要從下半年開始，而且我們說明顯比這還要早。

As it relates to volume and revenue passing for IL. I think if you look back over the last five years, George, I'd characterize that we've always seen that ASPs have declined in the past typically in that kind of mid-single digits range. And that's not unexpected as the technology curve is ramped up and more volume has come to play. And actually those declines in time, but actually also helped accelerate new segment adoptions, unlock new opportunities.

因為它關係到 IL 的銷售和收入。喬治，我想如果你回顧過去五年，我會發現我們一直看到平均銷售價格在過去通常會下降到中個位數的範圍。隨著技術曲線的提升和更大的成交量的發揮，這並不令人意外。實際上，這些下降雖然及時，但實際上也有助於加速新細分市場的採用，釋放新的機會。

I think as we moving forward, I believe we'll see some moderation in those type of declines largely because some of the bigger gains have already been made. And we're continuing to lean into where we see our scale advantage, particularly in our innovation process, manufacturing and innovations at product level, which we think has fundamentally underpinned our competitive advantage over this period and we believe will continue to underpin our competitive advantage moving forward.

我認為，隨著我們前進，我相信我們會看到此類下降放緩，主要是因為一些更大的收益已經取得。我們將繼續關注我們的規模優勢，特別是在我們的創新流程、製造和產品層面的創新方面，我們認為這從根本上支撐了我們在此期間的競爭優勢，並且我們相信將繼續支撐我們的競爭優勢繼續前進。

I think at the end of the day pricing is that one element that has come to bear in the market. And I think the bigger element as we move forward is the value creation that customers are seeing, which is a very pertinent discussion that we're having with customers now is what value they're creating, which is why the ROIs looking so high and the more that we move to enabling a broader solution being that kind of one throat to choke for customers across each node of that ecosystem, the more likely we are to capture more value in that regard.

我認為歸根結底，定價是市場上發揮作用的因素。我認為，隨著我們前進，更大的因素是客戶看到的價值創造，這是我們現在與客戶進行的非常相關的討論，他們正在創造什麼價值，這就是投資回報率看起來如此之高的原因我們越是致力於提供更廣泛的解決方案，成為該生態系統每個節點上的客戶的咽喉，我們就越有可能在這方面獲得更多價值。

Roxland Mike, Trust Securities.

羅克克蘭·麥克，信託證券。

Thank you for taking my questions and congrats on good quarter. -- Just wanted to get more Deon, do more color from you regarding that delay in customer deployment in 4Q. I think you mentioned logistics, does it involve any other verticals as well. Maybe general retail just because given the various SKUs that the greater amount of SKUs in general retail, maybe that was taking a little bit longer to deploy and I can comment on flows deferred -- for the deferrals that delay, when do you expect them to hit in 2025. And lastly, just on the deflation, can you comment on any approaches you're using to reduce material costs, improve productivity and the like to offset the deflation you're experiencing?

感謝您回答我的問題，並祝賀您季度表現良好。 -- 只是想從您那裡獲得更多 Deon，並就第四季度客戶部署的延遲提供更多資訊。我想你提到了物流，它是否還涉及其他垂直領域？也許一般零售只是因為考慮到各種 SKU，一般零售中的 SKU 數量較多，可能需要更長的時間來部署，我可以對延遲的流量發表評論 - 對於延遲的延遲，您預計它們什麼時候會發生2025年達到。最後，關於通貨緊縮，您能否評論一下您正在使用的降低材料成本、提高生產率等以抵消您正在經歷的通貨緊縮的方法？

Sure, Mike. Let me maybe clarify exactly for on logistics. This is not an impact of rollout. The rollout has largely at least for our large logistic customer has been done as we went through the back end of last year. The biggest quarter was the fourth quarter in which we both rolled out and deployed. And then we've gone through this half this year is basically servicing that, albeit like to say on lower overall parcel, softer parcel demand across the market.

當然，麥克。也許讓我準確地澄清一下物流問題。這不是推出的影響。至少對於我們的大型物流客戶來說，這項部署在去年年底就已完成。最大的季度是我們推出和部署的第四季。然後，我們今年上半年基本上是在為這一點提供服務，儘管整體包裹量較低，但整個市場的包裹需求較疲軟。

And as it relates specifically to the question around what happens in the timing. I made the point of saying that we see the greatest variance of timing relative to our expectations, typically in new pilots that are moving to rollouts and often in these new segments. We saw the same in apparel like when we first started, you have an estimate of timing, as a number of factors that come into play at that point, not just the returns that the customers bank going to see, which so far proved to be very good.

因為它特別涉及時間上發生的事情的問題。我想說的是，我們看到的時間安排與我們的預期有最大差異，通常是在即將推出的新試點項目中，而且通常是在這些新細分市場中。我們在服裝領域也看到了同樣的情況，就像我們剛開始的時候一樣，你對時間有一個估計，因為當時有許多因素發揮作用，而不僅僅是客戶銀行將看到的回報，到目前為止，這被證明是非常好。

But also the timing of how they then culturally adopt that either in the supply chain or in the stores or both. And sometimes that can change according to their own specific dynamics. The typical movements we see or intra-quarter within a year and typically in a 12 month basis. So anything that we see that may be slightly delayed in one quarter typically tends to move forward to the second or third quarter there afterwards.

但也包括他們如何在供應鏈或商店或兩者中在文化上採用這一點的時機。有時這可能會根據他們自己的具體動態而改變。我們看到的典型變動是一年內的季度內變動，通常是 12 個月的變動。因此，我們看到的任何可能在一個季度稍微延遲的事情通常都會提前到第二或第三季。

As to your question on deflation, it's been part of our core strength as a company is relentlessly driving productivity. I touched on that earlier in my prepared remarks as well. And we've taken that approach significantly in our Intelligent Labels platform, I think is one unique piece that we are able to bring to bear.

至於你關於通貨緊縮的問題，作為一家不斷提高生產力的公司，它一直是我們核心優勢的一部分。我早些時候在準備好的發言中也談到了這一點。我們在智慧標籤平台中顯著採用了這種方法，我認為這是我們能夠發揮作用的獨特部分。

If you think about our materials business is, the world leader in roll to roll process manufacturing and the capabilities that goes within that. And we've been able to leverage that capability to apply to a new segment that has enormous volume growth potential in our IL platform. So being able to apply that capability has given us a significant advantage when it comes to the cost of manufacturing of our items. It's something we're constantly focused on.

如果您考慮我們的材料業務，我們在卷對卷工藝製造及其相關能力方面處於世界領先地位。我們已經能夠利用這種能力來應用到一個新的細分市場，該細分市場在我們的 IL 平台中具有巨大的銷售成長潛力。因此，能夠應用這種能力為我們在產品的製造成本方面帶來了顯著的優勢。這是我們一直在關注的事情。

And then as we move forward, we'll continue to leverage our innovation and material science innovation, our process innovation and our solutions innovation to further augment how we're going to create further value or change, provide a further step change function change in our competitive differentiation with the rest of the market.

然後，隨著我們前進，我們將繼續利用我們的創新和材料科學創新、工藝創新和解決方案創新，進一步增強我們創造進一步價值或變革的方式，提供進一步的步驟變革功能變革我們與市場其他公司的競爭優勢。

Joshua Spector, UBS.

約書亞‧斯佩克特，瑞銀集團。

Good morning. I wanted to ask about RFID in a similar vein. Just where now we're talking about volume and pricing a little bit more. Has anything changed on the competitive dynamics within RFID to require greater pricing actions? Or are we now at a phase of rollout, whether there's any price-downs that we need to consider when you talked about historically or when you raise the bar and said 20% growth in RFID, is that more volume? And we need to think about price separate from that or do you think about that more as organic? Thanks

早安.我想以類似的方式詢問 RFID。現在我們更多地討論銷售和定價。RFID 內部的競爭動態是否發生了變化，需要採取更大的定價行動？或者我們現在正處於推出階段，當您談到歷史時，或者當您提高標準並表示 RFID 增長 20% 時，我們是否需要考慮降價，這是否意味著數量更大？我們需要考慮與此分開的價格，還是您認為它更像是有機的？謝謝

Thanks, Josh. To your funds to your last question, the changes more in volume as it relates to the competitive dynamics, I'm sorry, and the timing of those customer rollouts as relates to the volume. As it relates to competitive dynamics, we clearly see competitive dynamics in the IL market. It's a growth industry, it's always going to attract more capital. But our focus has been on maintaining and expanding our leadership share in this.

謝謝，喬許。對於你的最後一個問題，我很抱歉，數量上的變化更大，因為它與競爭動態有關，而這些客戶推出的時間也與數量有關。由於它與競爭動態相關，我們清楚地看到 IL 市場的競爭動態。這是一個不斷成長的行業，它總是會吸引更多的資本。但我們的重點一直是維持和擴大我們在這方面的領導地位。

And we do this in a couple of ways, not least on the elements that I touched on, Josh, which is around our innovation at a process level at a product level and a social level, but also in the way that we're helping to activate industries. We've been investing ahead of the curve to ensure that we can activate industries likes logistics and like food. And you've seen the outcome of that. We are the people leading this Logistics segment industry. And we're doing a similar process with some of the pilots we're looking into food, whether it's in grocery or whether it's in QSR as well.

我們透過多種方式做到這一點，尤其是我提到的要素，喬希，這是圍繞我們在流程層面、產品層面和社會層面的創新，也是我們幫助的方式以激活產業。我們一直在超前投資，以確保我們能夠激活物流和食品等行業。你已經看到了結果。我們是物流業的領導者。我們正在與一些正在研究食品的試點進行類似的過程，無論是在雜貨店還是在 QSR 中。

I actually think overall that if I look forward, I have very high conviction that our capability and the way that we play a role somewhat uniquely across each node of the ecosystem of Intelligent Labels, whether it's from inlay manufacturing, all the way through to managing data and providing services gives us a position in which particularly when new customers come on board as they think about adopting that technology being a significant decision for their C-suite.

我實際上認為，總的來說，如果我展望未來，我非常堅信我們的能力和我們在智慧標籤生態系統的每個節點中發揮作用的方式都有些獨特，無論是從鑲嵌製造，一直到管理數據和提供服務使我們處於這樣的地位，特別是當新客戶加入時，他們認為採用該技術對他們的高階主管來說是一個重要的決定。

They're looking for somebody with credibility, scale and global reach and experience to be able to do that and it tends to position us better than anybody else. Our experience has shown over time that we then are the disproportionate leader in our share overall, something that we think even in this year, we're going to continue to maintain, if not expand.

他們正在尋找具有信譽、規模、全球影響力和經驗的人來做到這一點，這往往使我們比其他任何人都處於更好的位置。隨著時間的推移，我們的經驗表明，我們在整體份額中處於不成比例的領先地位，我們認為即使在今年，我們也將繼續保持這一點，如果不是擴大的話。

Matt Roberts, Raymond James.

馬特羅伯茨，雷蒙德詹姆斯。

Hey, good afternoon everybody. Thank you for the time. Surprise -- . I will ask about RFIDs. Maybe given the timing issue in 2024, could you now envision with that timing a growth of more than 20% in 2025? And if you could provide any examples or timing or magnitude of those initial food or QSR rollouts or how we should think about that a little bit farther? I think that could certainly be helpful. Thank you.

嘿，大家下午好。謝謝你的時間。驚喜——。我會詢問有關 RFID 的問題。也許考慮到 2024 年的時機問題，您現在能否設想在這個時機下，2025 年的成長將超過 20%？如果您可以提供這些初始食品或 QSR 推出的任何範例或時間或規模，或者我們應該如何進一步考慮這一點？我認為這肯定會有幫助。謝謝。

Sure, Mike. Let me just start by saying the reason why I think we have such conviction in the long-term growth potential of this this platform. If you think about apparel being, let's say, 45 billion units and we are roughly 40% penetrated with IL now through that. Logistics by contrast is 65 billion to 70 billion units. We have just one customer, the industry that is now started to adopt. And then food by comparison to that is over 200 billion units where there are just at its nascent stage.

當然，麥克。首先我要說一下為什麼我們對這個平台的長期成長潛力充滿信心。如果你考慮服裝的銷量，比如說 450 億件，那麼現在 IL 的滲透率約為 40%。相比之下，物流數量為 650 億至 700 億個單位。我們只有一個客戶，也就是現在開始採用的產業。相較之下，食品的數量超過 2,000 億單位，而且還處於起步階段。

So the runway for this platform in connecting physical items of digital identities is substantial. And over many years to come as well. And the way that I think about our ability in each one of those segments is that we are engaged right now discussions with all logistics providers in some instance, we're doing trials and pilots.

因此，該平台在連接數位身分的實體項目方面的跑道是巨大的。未來的許多年也是如此。我對我們在每個細分市場的能力的看法是，我們現在正在與所有物流提供者進行討論，在某些情況下，我們正在進行試驗和試點。

And on the food side of things, we are continuing to drive very productive pilots across both quick-service restaurant and grocery. As to the longer term volume outlooks. We have a Investor Day coming up in September, where we're going to be focusing on what our strategic plans and our outlooks are for the next five years. And we'll give more color at that point.

在食品方面，我們正在繼續推動快速服務餐廳和雜貨店的高效試點。至於長期成交量前景。我們將在 9 月舉辦投資者日，屆時我們將重點放在未來五年的策略計畫和前景。屆時我們將提供更多顏色。

Jeffrey Zekauskas, JPMorgan.

傑弗瑞‧澤考斯卡斯，摩根大通。

Thanks very much. I was hoping you could just describe a little bit of what's going on in SG&A expense. And that SG&A expense was up $55 million year-over-year or about 17%. And if you look at Avery for the past five years, the SG&A expense on a sequential basis in the second quarter goes down every year. So is there something that's unusual in the second quarter and how did raw materials change year-over-year in the second quarter?

非常感謝。我希望您能簡單描述一下 SG&A 費用的情況。SG&A 費用年增 5,500 萬美元，增幅約 17%。如果你看看艾利過去五年的情況，你會發現第二季的銷售、管理和行政費用逐年下降。那麼第二季有什麼不尋常的地方嗎？

I mean, the biggest driver versus last year. Obviously in 2023, we did not deliver results in line with our initial expectations for the year. So our incentive compensation accruals in 2023 were quite low, down to zero for corporate or for that matter at the end of the year.

我的意思是，與去年相比，最大的推動因素。顯然，2023 年我們的業績並沒有達到我們最初的預期。因此，我們 2023 年的應計激勵薪酬非常低，企業或年底時降至零。

This year, of course, as we talked about, we're raising our expectation and are raising our outlook above our initial expectations. So incentive comp accruals are a bit higher. So there's a pretty sizable swing on that from a year-over-year perspective. So that would be the main driver versus prior year.

當然，正如我們所談到的，今年我們提高了我們的預期，並將我們的前景提高到高於我們最初的預期。因此，應計激勵補償要高一些。因此，從同比的角度來看，這個數字存在著相當大的波動。因此，與去年相比，這將是主要驅動力。

And second question was -- .

第二個問題是——。

Inflation, deflation?

通貨膨脹、通貨緊縮？

Inflation versus prior year. Overall as I said, inflation sequentially was very low single digits versus prior year high single digit deflation versus last year, really about half driven from paper year-over-year and the rest from chemical and film. So a little bit of sequential from paper largely in Europe, year-over-year still high single digit deflation.

與去年相比的通貨膨脹。總體而言，正如我所說，與去年相比，通貨膨脹率連續非常低的個位數，而去年的通貨緊縮則高達個位數，實際上大約有一半是由紙質同比驅動的，其餘的則是由化學品和膠片驅動的。因此，從紙面上來看，主要是在歐洲，同比通貨緊縮仍然處於高個位數。

And Jeff, the only thing I'd also add to what Greg said is in last year, as you recall, when we're going through that significantly more challenging period, we did what we always do, which is to dramatically improve and strengthen on our cost management and particularly some of our temporary costs as well. And we've seen as volume has recovered and normalized in the second quarter that some of those temporary costs have returned as well. And you'll see that contrast factor in addition to the incentive comp basis.

傑夫，我唯一要補充的是格雷格去年所說的，正如你所記得的那樣，當我們經歷那個更具挑戰性的時期時，我們做了我們一直在做的事情，那就是大幅改進和加強關於我們的成本管理，特別是我們的一些臨時成本。我們看到，隨著第二季銷售的恢復和正常化，其中一些臨時成本也已恢復。除了激勵補償基礎之外，您還會看到對比因素。

Anthony Pettinari, Citi.

安東尼佩蒂納裡，花旗銀行。

I was wondering, if you could talk a little bit about Vestcom, obviously not the biggest part of your business, but just how has that business been performing this year in terms of organic growth and maybe what's coming from volume or price? And then we've seen stories of large retailers adopting digital shelf potentially in a big way. Just wondering how kind of Vestcom is set up potentially in a move towards a bigger digital shelf environment?

我想知道，您是否可以談談 Vestcom，這顯然不是您業務中最大的部分，但該業務今年在有機增長方面表現如何，也許來自數量或價格？然後我們看到了大型零售商可能大規模採用數位貨架的故事。只是想知道 Vestcom 在邁向更大的數位貨架環境的過程中會如何建立？

Sure, Anthony. Let me just talk a little bit about Vestcom and I'll address your second point afterwards. Our Vestcom business continues to do well and overall, and it contributes in a number of different dimensions, not least the fact that it's a high value segment business with a greater than segment average margins, but also the access and the reach that the Vestcom business has into a lot of the food customers that we never really had access to in the past, which has helped us on our food initiatives around intelligent labels, but also across drug, dollar and so forth.

當然，安東尼。讓我簡單談談 Vestcom，然後我會解決你的第二點。我們的Vestcom業務總體上繼續表現良好，並且在許多不同的方面做出了貢獻，不僅是因為它是一個高價值細分業務，其利潤率高於細分市場平均水平，而且還包括Vestcom業務的准入和覆蓋範圍已經接觸到了許多我們過去從未真正接觸過的食品客戶，這幫助我們圍繞智慧標籤開展食品計劃，而且還涉及藥品、美元等。

I think this year particularly the second quarter, there was a degree of softness more related to the drug store challenges that you're seeing openly in the market at the moment. But I will also say that as part of a reaffirmation of kind of the value that, that business does in both providing productivity solutions, it's just kind of shelf-edge labeling in sequence and walk sequence, but also in terms of its media outlet, how you leverage that shelf itch technology to also provide consumer media promotions.

我認為今年，特別是第二季度，出現了一定程度的疲軟，這與您目前在市場上公開看到的藥局挑戰更相關。但我還要說，作為重申該企業在提供生產力解決方案方面所做的價值的一部分，它只是一種按順序和行走順序的貨架邊緣標籤，而且還包括其媒體渠道，您如何利用貨架之癢科技來提供消費者媒體促銷。

We've re-signed a significant US retailer for a multi-year deal again. And we're anticipating by the end of year to get a new large US retail banner as part of our customer portfolio as well. When I talks, -- when you think about specifically the shelf, it's becoming more digitized. Digitization is an inevitable trend that we see moving, and that's actually a tailwind for us as a collective company and a large part of our solutions business as well.

我們再次與一家重要的美國零售商簽訂了多年期協議。我們預計到今年年底將獲得一個新的大型美國零售橫幅作為我們客戶組合的一部分。當我談論時，當你具體考慮貨架時，它變得更加數位化。數位化是我們看到的不可避免的趨勢，這實際上對我們作為一家集體公司以及我們解決方案業務的很大一部分來說是一種順風。

I will note that our Vestcom business, while it currently has a analog, let's call it an analog shelf label, it actually is the strength of the is actually its data composition engine. Our business takes a huge amount of data, both point-of-sale data, planogram data, pricing data and advertising information. And through that data composition outputs currently to an analog label.

我要指出的是，我們的 Vestcom 業務雖然目前有一個模擬，讓我們稱之為模擬貨架標籤，但它實際上的優勢實際上是它的數據組合引擎。我們的業務需要大量數據，包括銷售點數據、貨架圖數據、定價數據和廣告資訊。並透過該數據組合當前輸出到模擬標籤。

We also are currently involved in most of the shelf edge -- electronic shelf, which trials as the engine that also outputs that to an electronic shelf labels either analog or digital. And I think that is going to be one of the strengths of this business and moving forward is that as electronic shelf labels may start to become an increasingly bigger part of our retail. It will not be ubiquitous across all stores will be in certain targeted segments. And so you'll still be dealing with a mixed estate. and the people best place to deal with that mixed estate, I believe, is our Vestcom business.

我們目前也參與了大多數貨架邊緣——電子貨架，它作為引擎進行試驗，也將其輸出到類比或數位的電子貨架標籤。我認為這將成為該業務的優勢之一，並且隨著電子貨架標籤可能開始成為​​我們零售業中越來越大的一部分，向前邁進。它不會在某些目標細分市場的所有商店中普遍存在。所以你仍然會處理混合財產。我相信，人們處理這種混合產業的最佳地點是我們的 Vestcom 業務。

George Staphos, Bank of America.

喬治‧斯塔福斯，美國銀行。

Thanks for taking my follow-on. So in materials, it seemed like I mean, at least versus our model, margins were 50 basis points to 100 basis points higher than we would have expected. How did margins fare relative to your initial expectations for the quarter?

感謝您接受我的後續。因此，在材料方面，我的意思是，至少與我們的模型相比，利潤率比我們的預期高 50 到 100 個基點。與您對該季度的最初預期相比，利潤率如何？

Again, Deon and Greg, how much was operating leverage? How much was your cost reduction program? How much of it was getting, if anything, some of the effects of your initial round of pricing. Any color there would be helpful as we project out for the rest of the year? Thank you.

Deon 和 Greg 再次詢問，營運槓桿是多少？您的成本削減計劃是多少？其中有多少是受到了第一輪定價的影響（如果有的話）。當我們計劃今年剩下的時間時，有什麼顏色會有幫助嗎？謝謝。

Thanks, George, for the question. I think the answer is a little bit of all those buckets that you mentioned. So as we said, Europe is our largest region in the materials business, we can see from the pie charts in the slides, and that business did have a stronger top line quarter than we had anticipated. And that of course, helped overall from a leverage perspective. We also, as I talked about earlier, raised our expectation for restructuring savings this year. Some of that is coming in our materials business. So that helped a little bit. And that business continues to drive strong, ongoing ELS type productivity as well.

謝謝喬治提出這個問題。我認為答案是你提到的所有這些桶中的一部分。正如我們所說，歐洲是我們材料業務中最大的地區，我們可以從幻燈片中的餅圖看到，該業務的季度營收確實比我們預期的要強。當然，從槓桿角度來看，這總體上有所幫助。正如我之前提到的，我們也提高了今年重組儲蓄的預期。其中一些來自我們的材料業務。所以有點幫助。該業務也繼續推動強大、持續的 ELS 型生產力。

So overall, a number of factors that are playing into the quarter, I think as I've said, really over the last couple of quarters when we set our long-term targets through 2025, we talked about targeting around 17% EBITDA for our materials segment. And clearly, over the last four quarters, we've shown that we're on track to deliver that or better.

因此，總的來說，我認為，正如我所說，在過去幾個季度中，當我們設定到 2025 年的長期目標時，我們談到了將我們的 EBITDA 目標定為 17% 左右。 。顯然，在過去的四個季度中，我們已經表明我們正在實現這一目標或更好。

And our expectation is we'll continue delivering at that target or a little bit above that target as we go forward. And as you know, we don't just you've heard us say this a lot, but it's really how we're really focused and drive the businesses, focusing on the balance of top line growth with margins with our capital efficiency to drive EVA. And we think that's the right recipe ultimately for driving a strong total shareholder return. And that's part of why we focus on that. But it really is focusing on the balance of growth margins and capital, and we'll continue to drive all three of those levers.

我們的期望是，隨著我們的前進，我們將繼續實現該目標或略高於該目標。如您所知，我們不僅經常聽到我們這麼說，但這確實是我們真正關注和推動業務的方式，專注於營收成長與利潤率的平衡，並透過我們的資本效率來推動EVA。我們認為，這是最終推動強勁的股東總回報的正確秘訣。這就是我們關注這一點的部分原因。但它確實關注的是成長利潤和資本的平衡，我們將繼續推動這三個槓桿。

Jeffrey Zekauskas, JP Morgan.

傑弗瑞‧澤考斯卡斯，摩根大通。

Thanks very much. If you had to allocate your $50 million in cost savings to cost of goods sold and SG&A, how would you allocate it? And for the quarter, if you look at the negative price mix in Solutions, was it about half of the negative price mix in Materials?

非常感謝。如果您必須將節省的 5000 萬美元成本分配給銷售成本和 SG&A，您會如何分配？對於本季度，如果您查看解決方案中的負價格組合，是否約為材料中負價格組合的一半？

On your first question, Jeff, I think it's probably, I don't have that off the top of my head. It's probably a relatively even split. We're continuing to drive for probably a little bit more, I guess, in cost of sales as we've driven a number of actions we talked about last year, a large initiative in Europe and the materials business as well as, of course, we took advantage of the lower volumes that we had due to destocking last year to drive some further productivity in the Solution side, at the same time. So it's a combination, probably a little more heavily weighted in the quarter on the cost of sales side.

關於你的第一個問題，傑夫，我想這可能是，我並沒有想到這一點。這可能是一個相對均勻的分裂。我想，我們將繼續推動銷售成本的提高，因為我們去年已經採取了一些行動，包括歐洲和材料業務的一項大型舉措，當然還有，我們利用去年因庫存減少而導致的銷量下降，同時進一步提高了解決方案方面的生產力。所以這是一個組合，在本季銷售成本方面的權重可能更大一些。

Price mix, I think, as we talked about in materials, we had double digit volume growth with top line growth of about 6%. So as you asked earlier, we had high single digits, close to double digit deflation year-over-year, price down in mid-single digits to go with that in the materials business.

我認為，價格組合，正如我們在材料方面所討論的那樣，我們的銷量增長了兩位數，營收增長了約 6%。正如您之前所問的那樣，我們的通貨緊縮同比處於高個位數、接近兩位數的水平，與材料業務相一致的價格下降為中個位數。

On the solution side, price and volume and revenue growth was relatively similar to slightly higher volume growth and revenue growth.

在解決方案方面，價格、銷售和收入成長與略高的銷售成長和收入成長相對相似。

That concludes our question-and-answer session. Mr. Stander, I will now turn the call back over to you for the closing remarks.

我們的問答環節到此結束。史坦德先生，我現在將電話轉回給您作結束語。

Thank you all for joining the call today. And while the environment remains dynamic, we remain extremely confident in our position and prospects and our ability to deliver GDP-plus growth and top-quartile returns over the long term.

感謝大家今天加入電話會議。儘管環境仍然充滿活力，但我們對我們的地位和前景以及我們實現 GDP 超額成長和長期回報的能力仍然充滿信心。

That concludes our call today. Thank you for joining. You may now disconnect.

我們今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。