CCL Industries Announces 2Q 2021 Results

CCL Industries Inc. reported 2021 second quarter results.

Sales for the second quarter of 2021 increased 15.1% to $1,406.3 million, compared to $1,221.9 million for the second quarter of 2020, with organic growth of 20.5%, and acquisition- related growth of 1.5% partially offset by 6.9% negative impact from foreign currency translation.

Operating income for the second quarter of 2021 increased 43.9% to $235.5 million compared to $163.6 million for the comparable quarter of 2020. Operating income improved 51.4%, excluding currency translation.
 
Net earnings increased 47.3% to $153 million for the 2021 second quarter compared to $103.9 million for the 2020 second quarter.

“I am pleased to report better-than-expected quarterly results despite ongoing pandemic-related challenges, most severe in parts of Asia Pacific,” Geoffrey T. Martin, president and CEO, said. “All segments posted strong sales growth, up over 20% organically company-wide, while operating income and adjusted basic earnings per Class B share improved 55.5% and 64.8% respectively, excluding the negative impact of currency translation.

“Our CCL Segment generated very strong mid-teens organic sales growth this quarter compared to a mid-single digit decline in the prior year period,” added Martin. “This drove approximately 20% improvement in operating income compared to the same period for both 2020 and 2019 with a 16.3% operating margin, despite many inflationary challenges. CCL Design results increased dramatically on robust demand recovery in automotive markets compared to a prior year global industry shutdown, while electronics markets faced tough comparisons to a second quarter 2020 inventory rebuild following last year’s first quarter supply chain interruptions in China.

“Checkpoint’s sales and profitability improved dramatically compared to a time in 2020 when many non-essential retail outlets closed down and apparel supply chains in parts of Asia came to a complete stop,” Martin concluded. “Gains in RFID and security technologies fueled growth; results overall easily surpassed the same period in 2019. All product lines in all parts of the world at Avery posted strong gains against a weak prior year period affected by work place disruption. Innovia’s performance also surprised to the upside,
as record high resin costs were largely passed on to customers; strong productivity gains, especially in Mexico, and improved mix further augmented results.”