CCL Industries Inc (CCL.B:CA) 2024年年度報告「TSX」.pdf

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1、2024ANNUAL REPORTCCL Industries Inc.26,300Employees213Production Facilities42Countries6ContinentsCCL CCL is the worlds largest converter of pressure sensitive and extruded film materials for a wide range of decorative,instructional,security and functional applications for government institutions and

2、 large global customers in consumer packaging,healthcare,chemicals,consumer durables,electronic device and automotive markets.Extruded and labeled plastic tubes,aluminum aerosols and specialty bottles,folded instructional leaflets,specialty folded cartons,precision engineered and die cut components,

3、electronic displays,polymer banknote substrate and other complementary products and services are sold in parallel to specific end-use markets.Checkpoint Checkpoint is a leading developer of RF and RFID-based technology systems for loss prevention and inventory management applications,including label

4、ing and tagging solutions,for the broad retail and apparel industries worldwide.AveryAvery is the worlds largest supplier of labels,specialty converted media and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors

5、,mass-market stores and e-commerce retailers.Innovia Innovia is a leading global producer of specialty,high-performance,multi-layer,surface-engineered films for label,packaging and security applications.39%of total salesNORTH AMERICA REPRESENTS 31%of total salesEUROPE REPRESENTS30%of total salesEMER

6、GING MARKETS REPRESENTSCAUTION ABOUT FORWARD-LOOKING INFORMATION This annual report contains forward-looking information and forward-looking statements,as defined under applicable securities laws(hereinafter collectively referred to as“forward-looking statements”)that involve a number of risks and u

7、ncertainties.Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions.Forward-looking statements are typically identified by,but not limited to,the words“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans”or similar expressi

8、ons.Statements regarding the operations,business,financial condition,priorities,ongoing objectives,strategies and outlook of the Company,other than statements of historical fact,are forward-looking statements.Specifically,this annual report contains forward-looking statements regarding the anticipat

9、ed growth in sales,income and profitability of the Companys segments;the Companys improvement in market share;the Companys capital spending levels and planned capital expenditures in 2025;the adequacy of the Companys financial liquidity;the Companys targeted return on equity,improved return on total

10、 capital,adjusted earnings per share,adjusted EBITDA growth rates and dividend payout;the Companys effective tax rate;the Companys ongoing business strategy;the Companys ability to maintain a Net Debt to Adjusted EBITDA ratio below 3.5 times;the Companys expectations regarding general business and e

11、conomic conditions;the Companys Corporate Social Responsibility initiative to enhance the integration of social and environmental objectives into its business operations and strategy;the Companys expectation to achieve its overall environmental footprint and waste reduction goals for 2025 and 2030;t

12、he Companys ability to successfully deploy initiatives that reduce the carbon footprint of its products and services;the continuing impact the conflicts in Europe and the Middle East will have on the global economy and the global supply chain;the Companys success in passing on foreign exchange movem

13、ents and input cost changes,including inflationary costs,to its customer base;the Companys expectation to reduce absolute Scope 1 and 2 emissions 50%by 2032;the Companys expectation that it will engage its suppliers to set science-based targets by 2030;the Companys expectation to reach net-zero gree

14、nhouse gas emissions across the value chain by 2050;the Companys expectation to reduce absolute greenhouse gas emissions from Scopes 1,2 and select Scope 3 categories 90%by 2050;the expectation that Checkpoint will take its share of the rapidly expanding RFID market;the expectation that Innovia will

15、 successfully complete construction and commence commercial operation of its new film manufacturing facility in Germany in the first half of 2025;the expectation that Innovia will successfully consolidate the production from the closure of the Belgium facility into its facilities in the U.K.and Aust

16、ralia;the expectation that the CCL Segments capacity and technology investments in 2024 and 2025 will position it for growth and improved profitability in the coming years;the expectation that new business wins for CCL Secures polymer bank note substrate will drive improved sales volume especially i

17、n the first half of 2025;the expectation that Averys direct-to-consumer businesses,plus horticultural operations,will outpace legacy product lines and that further“tuck-in”acquisitions are possible;Checkpoints expectation that there will be strong demand for RFID-related products,including products

18、beyond retail,and that Checkpoints new RFID inlay facility in Mexico will position the Segment to be a leader in North America;Checkpoints expectation that core MAS and ALS apparel production categories will grow and improve profitability in 2025;Innovias expectation that the new“EcoFloat”shrink fil

19、m line in Poland will continue to add volume in 2025,and new coating lines in Mexico and the U.K.will add new product depth;the expectation that Innovia will improve 2025 results compared to 2024.Forward-looking statements are not guarantees of future performance.They involve known and unknown risks

20、 and uncertainties relating to future events and conditions,including,but not limited to,the impact of competition;consumer confidence and spending preferences;general economic and geopolitical conditions;currency exchange rates;interest rates and credit availability;technological change;changes in

21、government regulations;risks associated with operating and product hazards;and the Companys ability to attract and retain qualified employees.Do not unduly rely on forward-looking statements as the Companys actual results could differ materially from those anticipated in these forward-looking statem

22、ents.Forward-looking statements are also based on a number of assumptions,which may prove to be incorrect,including,but not limited to,assumptions about the following:higher consumer spending;increased customer demand for the Companys products;continued historical growth trends,market growth in spec

23、ific segments and entering into new segments;the Companys ability to provide a wide range of products to multinational customers on a global basis;the benefits of the Companys focused strategies and operational approach;the Companys ability to implement its acquisition strategy and successfully inte

24、grate acquired businesses;the achievement of the Companys plans for improved efficiency and lower costs,including the ability to pass on polypropylene resin,aluminum and other inflationary cost increases to its customers;the availability of cash and credit;fluctuations of currency exchange rates;the

25、 Companys continued relations with its customers;and general business and economic conditions.Should one or more risks materialize or should any assumptions prove incorrect,then actual results could vary materially from those expressed or implied in the forward-looking statements.Further details on

26、key risks can be found throughout this report and particularly in Section 4:“Risks and Uncertainties.”Except as otherwise indicated,forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are

27、 made may have on the business.Such statements do not,unless otherwise specified by the Company,reflect the impact of dispositions,sales of assets,monetizations,mergers,acquisitions,other business combinations or transactions,asset write-downs or other charges announced or occurring after forward-lo

28、oking statements are made.The financial impact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them;therefore,the financial impact cannot be described in a meaningful way in advance of knowing the specific facts.The forwar

29、d-looking statements are provided as of the date of this annual report and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances,except as required by law.Unless the context otherwise indicates,a reference to“the Company”

30、means CCL Industries Inc.and its subsidiary companies and equity-accounted investments.2024 LETTER TO SHAREHOLDERSDonald G.LangExecutive ChairmanGeoffrey T.MartinPresident and Chief Executive OfficerIt was another year of record adjusted net earnings*,moving from less than$500 million at the end of

31、2019,pre-pandemic,to$770 million for 2024,with hopes of continuing progress in 2025 assuming geo-political stress points around the world remain under control.Sales for 2024 were up 9%to$7.25 billion,with adjusted net earnings per Class B share increasing 16%,excluding foreign currency translation.A

32、djusted basic earnings per Class B share*improved from$3.76 in 2023 to$4.32 in 2024;foreign currency translation reduced earnings by 2 cents.Restructuring charges plus transaction expenses for acquisitions totaled$5.5 million,vastly surpassed by a$78.1 million non-cash accounting gain to revalue our

33、 existing 50%interest in Pacman in the Middle East on the acquisition of the remaining shares for$142.9 million.Despite$457 million net capital spending to provide capacity and capability for new opportunities,free cash flow*reached$607 million,$47 million up on last year.CCL SegmentSales for the ye

34、ar increased 9.7%,passing$4.5 billion,with 5.6%organic growth augmented by acquisitions and modest foreign exchange translation.Geographically,we delivered compelling gains in Asia Pacific and Latin America,with low single digit progress in North America and Europe.Segment operating income*grew 12.7

35、%to$714 million while adjusted EBITDA*margin moved up 50 basis points to 22.3%.Home&Personal Care results were solid in labels globally,with organic sales and underlying profit growth in all regions augmented by better than expected contribution from the Pacman acquisition.Our extruded tube business

36、 in the United States,where we are market leader,had a flat year in sales driving a moderate decline in profitability.We completed an important investment to integrate tube extrusion and label decoration at our Lumberton site in New Jersey which should bring gains in 2025 and beyond.CCL Container wa

37、s again the standout performer with a near double digit sales increase and significant profitability improvement.We invested heavily in new can manufacturing capacity in Mexico,including expanded infrastructure,and continued to update older technology in the United States.On a combined basis,we repo

38、rted very good profit improvement for the sector on a solid organic sales gain.12024 Annual Report2024 LETTER TO SHAREHOLDERSHealthcare&Specialty After strong years during the pandemic,and in 2023 when many customers reacted to the supply chain crisis with advanced purchases,we had a slow 2024 with

39、only modest progress in sales and profitability,all of it acquisition driven.One important customer redesigned an over the counter package reducing the need for labels and impacting North American profitability.CCL Faubel,our acquired clinical trials labeling business,had a solid first full year.We

40、settled into state-of-the-art new label plants in Sioux Falls,SD and Oss,Netherlands,although with some disruption pains bedding in new technologies.France had a challenging year and is now under new leadership.We invested in new plants in Raleigh,NC,and Montreal,Quebec,which will start up in 2025.E

41、merging markets were an area of strength.Our plant in Singapore made great strides for an important new customer in diabetic monitoring devices,while China and Brazil posted good gains.Ag-Chem also had a much improved year with double digit sales progress in the U.S.consumer Lawn&Garden sector and s

42、ignificantly better performance in Europe on a realigned manufacturing footprint.Overall,our focus in 2025 is to improve operationally after a period of significant investment and expansion.Food&Beverage sales easily passed$1 billion,our second end market to do so in the CCL Segment.Sleeves,flexible

43、 pouch and in-mould label sales increased significantly in 2024.Profitability,however,declined on start-up costs at a new plant in Spain and poor results at one of our U.S.plants further impacted by an energy drinks customer declaring bankruptcy.Additionally,the transition to our state-of-the-art ne

44、w plant in Austria was very challenging,especially in the first half of the year through the busy summer peak period,but things settled down in the fourth quarter and so far in 2025.Creaprint in Spain,an in-mould label producer and Pouch Partners,a specialist in stand-up flexible pouches in Italy ac

45、quired in 2023,had successful first full years.Pressure sensitive labels had good performance in the alcoholic beverage arena,despite soft end markets,and posted strong growth in closure labels.The new wine&spirits label plant in Italy posted start-up losses,but we had a record year at our plants in

46、 Australia,returned to profit in Chile,made good progress with tequila customers in Mexico and successfully navigated tough end markets in the United States.Sector profitability for 2024 overall improved only modestly after a soft fourth quarter.CCL Design had an exceptional recovery year surpassing

47、 previous highs,delivering record performance on new business wins with electronics customers on top of meaningful operational productivity improvement in many locations.The 2022 Desin acquisition,which had a tough first two years,delivered a robust turnaround.Improvements in electronics end markets

48、 were particularly strong in China,ASEAN countries,India and Mexico with a good pipeline of new projects as we enter 2025.Our plant in Israel had a solid year despite many external challenges.Gains in automotive were good in labels and decorative metal trim parts but the acquired former McGavigan op

49、eration in China had a poor year and we have now combined the management of this operation with our electronics leadership team.Tapes performance improved significantly,and we built a new clean room coating plant in China as we strive to control more of our own materials science developments.Sales t

50、o alkaline battery producers were stable.Overall,sales increased double digit with profitability rising beyond,despite R&D driven losses at Imprint Energy,acquired in 2023.CCL Secure had another outstanding year in the United States on high demand for passport components and the polymer banknote bus

51、iness performed well in Mexico but lagged in the U.K.and Australia.However,the outlook in those two sub-performing locations improved for 2025 on important new business wins.On a combined basis,sales and profitability increased for the sector.Avery Our consumer segment had a solid year with profitab

52、ility improving on a modest sales increase while continuing to deliver the highest free cash flow of any end market in the Company.Results were strongest in North America with gains in all product categories,most notably the Mastertag horticultural business.We broke ground on a new manufacturing pla

53、nt in Michigan,which we expect to complete in 2025.Europe had a flat year,especially in the legacy product lines,better in direct-to-consumer markets;profitability at the horticultural business improved but needs to continue doing so to meet our financial return benchmarks.Results in Latin America w

54、ere impacted by significant currency devaluations but were otherwise solid and we had a challenging year in Australia.Checkpoint Merchandise Availability Solutions(“MAS”)security systems and supplies posted sales gains and even better profitability improvement as global retailers move to control shr

55、ink loss and improve inventory insight for an omni channel world.Results included start-up cost for a new RFID inlay plant in Mexico targeted at customers outside of apparel in general merchandise,food and logistics although this was more than offset by profits for these products produced in China.G

56、eographically,sales gains were strongest in Europe and Asia Pacific.Sales for Apparel Labeling Solutions(“ALS”)leaped almost 30%on share gains and growth in RFID that drove significant profitability improvement,except in the fourth quarter where the Turkish currency,poor results in 22024 Annual Repo

57、rtLatin America and unfavourable product mix pinned back bottom line performance.The smaller Meto business delivered good cash flow.Segment operating income*passed$150 million for the first time,up$19 million.InnoviaPerformance was much improved as demand recovered in the label materials industry af

58、ter the historic destocking period in 2023.The closure of our older site in Belgium went smoothly with sales volume successfully transitioned to our plants in the U.K.and Australia,notably driving good profitability gains at our large site in Wigton,England.In Poland,we doubled sales volume for labe

59、l films including significant progress with EcoFloat that enables PET bottle recycling;the impact of this change in mix drove the plant into profitability.In Germany,we substantially completed the new low gauge film extrusion technology at our massively expanded plant in Leipzig and expect to start

60、production in the first half of 2025.We had another excellent year in the Americas as film volume increased double digit on share gains;profitability improved substantially aided by productivity,cost savings and commercial discipline.Segment operating income*improved by more than$20 million to$66 mi

61、llion,with a 9.4%return on sales,up 220 basis points.SustainabilityThis past year,the Company worked diligently on the verification of science-based targets through the Science-Based Targets initiative(“SBTi”),which will require the prioritization of renewable energy procurement and emissions reduct

62、ion strategies across all business units.In 2024,approximately 80%of our own manufacturing waste has now been diverted from landfill so we are on track to meet or exceed the 2025 target of 90%diversion.The Company continues to set a high bar for sustainability initiatives around the world.CCL Tube l

63、aunched the 100%recycle-ready,mono-material tube and airless pump dispenser for microencapsulated formulas in the Home and Personal Care market.Checkpoint refurbishes customers in-store anti-theft hardware around the world,reducing the amount of virgin plastic resin needed for new devices while prov

64、iding the same great product protection.Imprint Plus partnered with their key supplier of magnets used across the name badge product line to eliminate non-recyclable Styrofoam packaging from all shipments.Avery Zweckform,in Germany,installed an 800,000 KWH solar panel system on the roof of its distr

65、ibution center to reduce power consumption from fossil fuel sources.Avery North America transitioned to 100%recycled content lower basis weight paper board for its retail packaging.CCL Label launched EcoFloat WHITE shrink sleeves,a game changer for the recyclability of dairy products and other light

66、-sensitive items enabling the transition from white HDPE packaging to transparent PET bottles and containers,combined with a white opaque sleeve.Innovia extended its portfolio of Encore recycled content films in preparation for compliance with emerging regulations within the European Union.More deta

67、ils can be found in CCL Industries annual Sustainability Reports at to Shareholders Following our February 2025 Board meeting,we announced a 10.3%increase to the dividend.The annualized payout now stands at$1.28 per Class B share and$1.27 per Class A share,more than double the rate paid in 2018.Desp

68、ite spending$143 million on the Pacman acquisition and$457 million on net capital expenditures,the Companys net debt to adjusted EBITDA ratio ended 2024 comfortably inside investment-grade territory at 1.08 times,down 0.05 turns from 2023.The Company continued making share repurchases under its Norm

69、al Course Issuer Bid in 2024 returning$201 million to shareholders.We currently plan to invest approximately$485 million in 2025 in capital equipment and new plant expenditures,compared to approximately$379 million of 2024 depreciation and amortization expense,excluding right-of-use asset amortizati

70、on.With 98%of sales outside Canada,CCL continues to provide domestic shareholders considerable geographic risk diversification.Leadership and GovernanceCCL is a global enterprise with operations now in 42 countries on six continents.We continue to run a highly decentralized enterprise with over 400

71、profit centers,serving a variety of end markets using our specialized expertise in label converting,substrate surface engineering,film extrusion,adhesive coating,label formatting software and digital imaging,intelligent label automation,mechanical and laser cutting and automated assembly.Deep knowle

72、dge of these process technologies and how to match them to end markets remains a resume necessity to enter the senior operational leadership ranks and inevitably means talent must be internally developed or at least hired from our industry.We passionately believe that business leadership should be l

73、ocal to the country where we operate,especially outside North America.This ensures our operating units around the world reflect the ethnicity and society of the business communities we serve.Our professional corporate support staff focuses on technical excellence,agility and responsiveness,with a co

74、st equal to approximately 1%of sales.32024 Annual Report2024 LETTER TO SHAREHOLDERSWe bid farewell at this years AGM to two long-serving Directors who decided to retire from the Board.Kathleen Keller-Hobson joined us over 10 years ago and served as the Companys Lead Director since December 2016,and

75、Chair of the Nominating and Governance Committee shortly thereafter.Kathleens support for gender equality,deep knowledge in legal and governance matters,along with her insightful contributions to the Board will be greatly missed.We thank her for the leadership and wise counsel she brought to our del

76、iberations throughout her tenure.Stuart W.Lang joined the Board in May 1991 and is our longest-serving Director.Stuart always aligned his approach with the values established by the Companys Founder and brought to the Board a deep knowledge of the label industry having spent much of his long busines

77、s career in this part of CCL.We will all miss his easy-going personality,care for people and great sense of humor.Effective February 18,2025,we also said goodbye to DavidW.Nyland,who recently joined the Board but decided to resign due to a recent change in his personal circumstances.The Company will

78、 disclose new director nominees in its Management Proxy Circular in connection with the 2025 annual meeting.The Board continues to represent all shareholders through good governance practice,while providing seasoned,wise counsel to management.2025 Outlook Despite a very strong 2024,we expect to make

79、 further progress in 2025.Tense geo-political issues are worrying many companies with extensive geographic reach,and we are no exception.As in any global enterprise,the arrival of tariffs could have direct impact on some parts of our operations,although substantially most of our business is“local to

80、 local”on both the supply and demand axes.However,the intricacies of our global customers supply chains could be quite another matter.Hopefully common sense economic solutions prevail that support fair trade and the business community.As always,we close by thanking the 26,300 CCL people globally for

81、 their passion,commitment and extraordinary capabilities in this industry.You are absolutely the most important point of our competitive differentiation.To our customer and supplier partners,we truly value our relationships;and to our shareholders,we are ready to continue to progress and deliver res

82、ults.Donald G.Lang Geoffrey T.MartinExecutive Chairman President and Chief Executive Officer*Non-IFRS measures;see Section 5A of CCLs Managements Discussion and Analysis for more detail.42024 Annual ReportFINANCIAL HIGHLIGHTS(In millions of Canadian dollars,except per share and ratio data)2024 2023S

83、ales$7,245.0$6,649.6 9.0%Adjusted EBITDA$1,497.1$1,332.1 12.4%of sales 20.7%20.0%Restructuring and other items net loss$5.5$42.8 Revaluation gain$(78.1)$Goodwill impairment loss$95.0 Net earnings$843.1$530.2 59.0%of sales 11.6%8.0%Basic earnings per Class B shareNet earningsDiluted earningsAdjusted

84、basic earnings per Class B share*Dividends per Class B share$4.73 4.70 4.32 1.16$2.99 2.95 3.76 1.06 58.2%59.3%14.9%9.4%As at December 31Total assetsNet debt*Total equityNet debt to Adjusted EBITDA*Return on equity(before other expenses)*Number of employees$9,859.1 1,618.9 5,280.7 1.08 15.5%26,300$8

85、,924.2 1,508.2 4,623.2 1.13 15.0%25,700 10.5%7.3%14.2%2.3%*A non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A.52024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per sha

86、re data)This Managements Discussion and Analysis of the financial condition and results of operations(“MD&A”)of CCL Industries Inc.(“the Company”)relates to the years ended December 31,2024 and 2023.In preparing this MD&A,the Company has taken into account information available until February 20,202

87、5,unless otherwise noted.This MD&A should be read in conjunction with the Companys December 31,2024,annual consolidated financial statements,which form part of the CCL Industries Inc.2024 Annual Report dated February 20,2025.The consolidated financial statements have been prepared in accordance with

88、 International Financial Reporting Standards(“IFRS”),and,unless otherwise noted,both the financial statements and this MD&A are expressed in Canadian dollars as the presentation currency.The major measurement currencies of the Companys operations are the Canadian dollar,U.S.dollar,euro,Argentine pes

89、o,Australian dollar,Bangladeshi taka,Brazilian real,Chilean peso,Chinese renminbi,Danish krone,Egyptian pound,Hong Kong dollar,Hungarian forint,Indian rupee,Israeli shekel,Japanese yen,Malaysian ringgit,Mexican peso,Moroccan dirham,New Zealand dollar,Omani rial,Philippine peso,Polish zloty,Russian r

90、uble,Saudi riyal,Singaporean dollar,South African rand,South Korean won,Swiss franc,Thai baht,Turkish lira,United Arab Emirates dirham,U.K.pound sterling and Vietnamese dong.All per Class B non-voting share(“Class B share”)amounts in this document are expressed on an undiluted basis,unless otherwise

91、 indicated.The Companys Audit Committee and its Board of Directors(the“Board”)have reviewed this MD&A to ensure consistency with the approved strategy and results of the business.Additional information relating to the Company,including the Companys Annual Information Form,is available on SEDAR+at ww

92、w.sedarplus.ca or on the Companys website .FORWARD-LOOKING INFORMATION This MD&A contains forward-looking information and forward-looking statements,as defined under applicable securities laws(hereinafter collectively referred to as“forward-looking statements”)that involve a number of risks and unce

93、rtainties.Forward-looking statements include all statements that are predictive in nature or depend on future events or conditions.Forward-looking statements are typically identified by,but not limited to,the words“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans”or similar expressions

94、.Statements regarding the operations,business,financial condition,priorities,ongoing objectives,strategies and outlook of the Company,other than statements of historical fact,are forward-looking statements.Specifically,this MD&A contains forward-looking statements regarding the anticipated growth in

95、 sales,income and profitability of the Companys segments;the Companys improvement in market share;the Companys capital spending levels and planned capital expenditures in 2025;the adequacy of the Companys financial liquidity;the Companys targeted return on equity,improved return on total capital,adj

96、usted earnings per share,adjusted EBITDA growth rates and dividend payout;the Companys effective tax rate;the Companys ongoing business strategy;the Companys ability to maintain a Net Debt to Adjusted EBITDA ratio below 3.5 times;the Companys expectations regarding general business and economic cond

97、itions;the Companys Corporate Social Responsibility initiative to enhance the integration of social and environmental objectives into its business INDEX8 1.Corporate Overview8 A)The Company8 B)Customers and Markets8 C)Strategy and Financial Targets11 D)Recent Acquisitions and Dispositions12 E)Subseq

98、uent Event12 F)Consolidated Annual Financial Results14 G)Seasonality and Fourth Quarter Financial Results 17 2.Business Segment Review17 A)General20 B)CCL Segment22 C)Avery23 D)Checkpoint24 E)Innovia 25 F)Joint Ventures25 3.Financing and Risk Management25 A)Liquidity and Capital Resources 26 B)Cash

99、Flow 27 C)Interest Rate,Foreign Exchange Management and Other Hedges27 D)Equity and Dividends28 E)Commitments and Other Contractual Obligations29 F)Controls and Procedures30 4.Risks and Uncertainties38 5.Accounting Policies and Non-IFRS Measures38 A)Key Performance Indicators and Non-IFRS Measures43

100、 B)Accounting Policies43 C)Critical Accounting Estimates43 D)Related Party Transactions44 6.Outlook62024 Annual Reportoperations and strategy;the Companys expectation to achieve its overall environmental footprint and waste reduction goals for 2025 and 2030;the Companys ability to successfully deplo

101、y initiatives that reduce the carbon footprint of its products and services;the continuing impact the conflicts in Europe and the Middle East will have on the global economy and the global supply chain;the Companys success in passing on foreign exchange movements and input cost changes,including inf

102、lationary costs,to its customer base;the Companys expectation to reduce absolute Scope1 and 2 emissions 50%by 2032;the Companys expectation that it will engage its suppliers to set science-based targets by 2030;the Companys expectation to reach net-zero greenhouse gas emissions across the value chai

103、n by 2050;the Companys expectation to reduce absolute greenhouse gas emissions from Scopes 1,2 and select Scope 3 categories 90%by 2050;the expectation that Checkpoint will take its share of the rapidly expanding RFID market;the expectation that Innovia will successfully complete construction and co

104、mmence commercial operation of its new film manufacturing facility in Germany in the first half of 2025;the expectation that Innovia will successfully consolidate the production from the closure of the Belgium facility into its facilities in the U.K.and Australia;the expectation that the CCL Segment

105、s capacity and technology investments in 2024 and 2025 will position it for growth and improved profitability in the coming years;the expectation that new business wins for CCL Secures polymer bank note substrate will drive improved sales volume especially in the first half of 2025;the expectation t

106、hat Averys direct-to-consumer businesses,plus horticultural operations,will outpace legacy product lines and that further“tuck-in”acquisitions are possible;Checkpoints expectation that there will be strong demand for RFID-related products,including products beyond retail,and that Checkpoints new RFI

107、D inlay facility in Mexico will position the Segment to be a leader in North America;Checkpoints expectation that core MAS and ALS apparel production categories will grow and improve profitability in 2025;Innovias expectation that the new“EcoFloat”shrink film line in Poland will continue to add volu

108、me in 2025,and new coating lines in Mexico and the U.K.will add new product depth;the expectation that Innovia will improve 2025 results compared to 2024.Forward-looking statements are not guarantees of future performance.They involve known and unknown risks and uncertainties relating to future even

109、ts and conditions,including,but not limited to,the impact of competition;consumer confidence and spending preferences;general economic and geopolitical conditions;currency exchange rates;interest rates and credit availability;technological change;changes in government regulations;risks associated wi

110、th operating and product hazards;and the Companys ability to attract and retain qualified employees.Do not unduly rely on forward-looking statements as the Companys actual results could differ materially from those anticipated in these forward-looking statements.Forward-looking statements are also b

111、ased on a number of assumptions,which may prove to be incorrect,including,but not limited to,assumptions about the following:higher consumer spending;increased customer demand for the Companys products;continued historical growth trends,market growth in specific segments and entering into new segmen

112、ts;the Companys ability to provide a wide range of products to multinational customers on a global basis;the benefits of the Companys focused strategies and operational approach;the Companys ability to implement its acquisition strategy and successfully integrate acquired businesses;the achievement

113、of the Companys plans for improved efficiency and lower costs,including the ability to pass on polypropylene resin,aluminum and other inflationary cost increases to its customers;the availability of cash and credit;fluctuations of currency exchange rates;the Companys continued relations with its cus

114、tomers;and general business and economic conditions.Should one or more risks materialize or should any assumptions prove incorrect,then actual results could vary materially from those expressed or implied in the forward-looking statements.Further details on key risks can be found throughout this rep

115、ort and particularly in Section 4:“Risks and Uncertainties.”Except as otherwise indicated,forward-looking statements do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made may have on the business.Such statem

116、ents do not,unless otherwise specified by the Company,reflect the impact of dispositions,sales of assets,monetizations,mergers,acquisitions,other business combinations or transactions,asset write-downs or other charges announced or occurring after forward-looking statements are made.The financial im

117、pact of these transactions and non-recurring and other special items can be complex and depends on the facts particular to each of them;therefore,the financial impact cannot be described in a meaningful way in advance of knowing the specific facts.The forward-looking statements are provided as of th

118、e date of this MD&A and the Company does not assume any obligation to update or revise the forward-looking statements to reflect new events or circumstances,except as required by law.Unless the context otherwise indicates,a reference to“the Company”means CCL Industries Inc.and its subsidiary compani

119、es and equity-accounted investments.72024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)1.CORPORATE OVERVIEWA)The CompanyFounded in 1951,and publicly listed under its current name since 198

120、0,the Companys corporate offices are located in Toronto,Ontario,Canada,and Framingham,Massachusetts,United States,with a regional centre for Asia Pacific in Singapore.The corporate offices provide executive and centralized services such as finance,accounting,internal audit,treasury,risk management,l

121、egal,tax,human resources,information technology,environmental,health and safety,sustainability and oversight of operations.The Company employs approximately 26,300 people in 213 production facilities located in North America,Latin America,Europe,Middle East,Australia,Africa and Asia including an equ

122、ity investment in a venture operating four facilities.The CCL Segment(“CCL”)is the worlds largest converter of pressure sensitive and extruded film materials for a wide range of decorative,instructional,security and functional applications for government institutions and large global customers in co

123、nsumer packaging,healthcare,chemicals,consumer durables,electronic device and automotive markets.Extruded and labeled plastic tubes,aluminum aerosols and specialty bottles,folded instructional leaflets,specialty folded cartons,precision engineered and die cut components,electronic displays,polymer b

124、anknote substrate and other complementary products and services are sold in parallel to specific end-use markets.Avery is the worlds largest supplier of labels,specialty converted media and software solutions to enable short-run digital printing in businesses and homes alongside complementary produc

125、ts sold through distributors,mass-market stores and e-commerce retailers.Checkpoint is a leading developer of RF and RFID-based technology systems for loss prevention and inventory management applications,including labeling and tagging solutions,for the broad retail and apparel industries worldwide.

126、Innovia is a leading global producer of specialty,high-performance,multi-layer,surface-engineered films for label,packaging and security applications.The Company partly backward integrates into materials science,with capabilities in polymer extrusion,adhesive development,coating and lamination,surfa

127、ce engineering and metallurgy deployed as needed across the four business segments.B)Customers and MarketsThe state of the global economy and geopolitical events can affect consumer demand and customers marketing and sales strategies to promote growth,including the introduction of new products.These

128、 factors directly influence the demand for the Companys products.Growth expectations generally mirror the trends of each of the markets and product lines in which the Companys customers compete and the growth of the economy in each geographic region.The Company attempts to gain market share in each

129、market and category over time.The markets served by the CCL Segment are large and diverse,with some sectors highly fragmented,but with few competitors having the Companys substantial operating breadth or global reach.Avery has a dominant market-leading position for its products in North America,Euro

130、pe and Australia.Checkpoint has significant market positions in all regions of the world and sells directly to retailers and apparel manufacturers and competes with other global retail labeling companies.Innovia operates plants in Europe,Mexico and Australia and has additional distribution capabilit

131、ies in the United States that sell films to pressure sensitive materials producers,flexible packaging converters and the consumer-packaged goods industry,while also producing film internally for security and label applications.C)Strategy and Financial TargetsThe Companys strategy is to increase shar

132、eholder value through investment in organic growth and product innovations around the world,augmented by acquisitions.The Company builds on the strength of its people in marketing,manufacturing and product development and nurtures strong relationships with its international,national and regional cus

133、tomers and suppliers.The Company anticipates increasing its market share in most product categories by capitalizing on market insights and the growth of its customers,and by following developments such as globalization,new product innovation,sustainability,branding and consumer trends.The CCL Segmen

134、t aspires to be the market leader and the highest value-added producer in each customer sector and region in which it chooses to compete.The primary objective is to invest in growth globally,both organically and by acquisition.Avery objectives align to its core competencies in label and badging solu

135、tions centred on specialty converted media that enable short-run digital printing in homes and businesses and increasingly using the direct-to-consumer channel,both organically and by acquisition.Checkpoint focuses on technology-driven loss-prevention and inventory-management and labeling solutions

136、for the retail and apparel industries,inclusive of a rapidly developing RFID product portfolio.Innovia is a leading global producer of specialty,high-performance,multi-layer,surface-engineered films for label,packaging and security applications.Innovia also provides significant depth and capability

137、to develop proprietary films for label applications.82024 Annual ReportThe Companys financial strategy is to be fiscally prudent and conservative.The 2024 financial results delivered strong cash flow and a solid balance sheet after investing$142.9 million to acquire Pacman and$457.4 million in net c

138、apital expenditures to execute global growth initiatives whilst returning$407.0 million to shareholders in the form of dividends and share buyback.Even during good and challenging economic cycles,such as the prolonged impact of the COVID(“CV19”)pandemic,and geopolitical events such as the conflicts

139、in the Ukraine and the Middle East,which have dampened consumer demand,led to instability in energy,commodity and currency markets,and resulted in elevated inflationary pressures,the Company has maintained high levels of cash on hand and unused lines of credit to reduce its financial risk and to pro

140、vide flexibility when acquisition opportunities are available.As at December 31,2024,the Company had$828.7million of cash on hand and approximately US$956.7 million of undrawn capacity on the Companys unsecured revolving credit facility.The Company maintains a continuous focus on minimizing its inve

141、stment in working capital to maximize cash flow in support of growth in the business.In addition,capital expenditures target the most attractive growth opportunities and are expected to be accretive to earnings.The Companys financial discipline and prudent allocation of capital have ensured sufficie

142、nt available liquidity and a secure financial foundation for the long-term future.A key financial target for the Company is return on equity before goodwill impairment loss,restructuring and other items,non-cash acquisition accounting adjustments,revaluation gain,and tax adjustments(“ROE,”a non-IFRS

143、 measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A).The Company continues to execute its strategy with a goal of achieving a comparable ROE level to its leading peers in specialty packaging.2024 ROE of 15.5%improved compared to 2023 due to a solid increase in adjusted net ea

144、rnings:2024 2023 2022 2021 2020 2019Return on Equity 15.5%15.0%15.9%17.2%17.8%17.8%Another metric used by the investment community as a comparative measure is return on total capital before goodwill impairment loss,restructuring and other items,non-cash acquisition accounting adjustments,revaluation

145、 gain and tax adjustments(“ROTC,”a non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A).The chart below details performance since 2019.The Company targets delivering returns in excess of its cost of capital.ROTC of 11.8%for 2024 improved compared to 2023 due to the so

146、lid increase in adjusted net earnings and modest capital deployed for acquisitions for 2024:2024 2023 2022 2021 2020 2019Return on Total Capital 11.8%11.2%11.8%12.5%11.9%10.8%ROTC should increase as the Company deleverages its balance sheet and increases net earnings executing its global initiatives

147、 profitably.The long-term growth rate of adjusted basic earnings per Class B share(a non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A)is another important financial target.This measure excludes goodwill impairment loss,restructuring and other items,revaluation gain

148、,tax adjustments,gains on business dispositions and non-cash acquisition accounting adjustments.Management believes that,by taking into account the continuing benefits from the Companys focused strategies and operational approach,a positive growth rate in adjusted basic earnings per share is realist

149、ic under reasonable economic circumstances.The Company has achieved significant growth in its annual adjusted basic earnings per share since 2019:2024 2023 2022 2021 2020 2019Basic EPS Growth Rate 58.2%(14.6%)5.1%12.5%10.4%1.5%Adjusted Basic EPS Growth Rate 14.9%5.3%5.9%9.4%10.4%2.2%In 2024,adjusted

150、 basic earnings increased by 14.9%to$4.32 per Class B share.Improved profitability came from all the Companys segments,CCL,Avery,Checkpoint and Innovia.The Company believes continuing growth in earnings per share is achievable as the Company executes its global business strategies across all of its

151、segments.The Company will continue to focus on generating cash and effectively utilizing the cash flow generated by operations and divestitures.Earnings before net finance cost,taxes,depreciation and amortization,excluding goodwill impairment loss,earnings in equity-accounted investments,non-cash ac

152、quisition accounting adjustments,revaluation gain,restructuring and other items(“Adjusted EBITDA,”a non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A),is considered a good indicator of cash flow and is used by many financial institutions and investment advisors to m

153、easure operating results and for business valuations.92024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)As a key indicator of cash flow,Adjusted EBITDA demonstrates the Companys ability to

154、 incur or service existing debt,to invest in capital additions and to take advantage of organic growth opportunities and acquisitions that are accretive to earnings per share.Historically,the Company has experienced growth in Adjusted EBITDA:2024 2023 2022 2021 2020 2019Adjusted EBITDA$1,497.1$1,332

155、.1$1,231.4$1,173.1$1,123.2$1,067.2%of sales 21%20%19%20%21%20%In 2024,Adjusted EBITDA increased by approximately 12.4%from 2023,12.1%excluding the positive impact of foreign currency translation.The Companys Adjusted EBITDA margins remain at the top end of the range of its peers.The Company expects

156、growth in Adjusted EBITDA in the future as the Company executes its international growth initiatives,managing regional economic volatility,geopolitical challenges in Europe and the Middle East and an evolving precarious global political backdrop affecting supply chains.The framework supporting the a

157、bove performance indicators is an appropriate level of financial leverage.Based on the dynamics within the specialty packaging industry and the risks that higher leverage may bring,the Company has a comfort level up to a ceiling of approximately 3.5 times net debt to Adjusted EBITDA with an appropri

158、ate deleveraging and liquidity profile to maintain its investment-grade ratings with Moodys Investor Service(“Moodys”)and S&P Global(“S&P”).As at December 31,2024,net debt(a non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section5A)to Adjusted EBITDA was 1.08 times,slightly

159、lower than the 1.13 times at December 31,2023,reflecting increased Adjusted EBITDA more than offsetting higher net debt.This leverage level is consistent with managements conservative approach to financial risk and the Companys ability to generate strong levels of free cash flow from operations(a no

160、n-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A).This leverage level also allows the Company the flexibility to quickly execute its acquisition growth strategy without significantly exposing its credit quality.The Board does not have a target dividend payout ratio(a

161、 non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A).However,the Company has paid dividends quarterly for over forty years without an omission or reduction.The Board views this consistency and dividend growth as important factors in enhancing shareholder value.For 20

162、24,the dividend payout ratio was 27%of adjusted earnings.This dividend payout ratio reflects the strong cash flows generated by the Company and strong improvement in adjusted earnings in 2024 compared to 2023.Therefore,after careful review of the current year results and the budgeted cash flow and i

163、ncome for 2025,the Board has declared a 10.3%increase in the annual dividend:an increase of$0.03 per Class B share per quarter,from$0.29 to$0.32per Class B share per quarter($1.28 per Class B share annualized).Including this increase,the Company has more than doubled the annualized rate since March

164、2018.The Company believes that all of the above targets are mutually compatible and consequently should drive meaningful shareholder value over time.The Companys strategy and ability to grow and achieve attractive returns for its shareholders are shaped by key internal and external factors that are

165、common to the businesses it operates.The key performance driver is the Companys continuous focus on customer service,supported by its reputation for quality manufacturing,competitive pricing,product innovation,dependability,ethical business practices and financial stability.The Company updates its f

166、inancial strategies and its performance against internal benchmarks while considering its obligations to Corporate Social Responsibility(“CSR”).The Companys CSR initiative is designed to enhance the integration of social and environmental concerns into its business operations and strategy as well as

167、 interactions with stakeholders.Since 2019,the Company has been continuing to build up the initiative to align with best practices in the industry with changes and progress released in an annual Sustainability Report covering material environmental and social responsibility issues and policies.These

168、 reports are made available on the Companys website at Company is committed to helping customers meet their targets by developing new products while reducing the environmental impact of its manufacturing processes.The Company has set targets to reduce key environmental impacts including emissions re

169、ductions and waste to landfill diversion.Ethics:The Companys Global Business Ethics Guide,enhanced in 2021 to align with the Companys Corporate Social Responsibility strategy,is its primary policy on workplace practices,human rights,health and safety,ethical conduct and fair business practices for a

170、ll employees.Reviewing the Guide is an important part of new hire training and global facilities are audited to ensure all new hires have access to a copy of the ethics guide.102024 Annual Report Health&Safety:The health and safety of the Companys employees around the world is a top priority.The Com

171、panys current Environmental Health&Safety(“EHS”)policy and robust safety reporting programs address the statutory requirements of the countries where the Company does business.The EHS policy is reviewed and revised as needed as part of the Companys annual Sustainability Report disclosure.Quarterly r

172、eporting of health and safety performance statistics to management and the CSR Committee is required.Responsible Supply Chains:The Company continues to work with its supply chain partners to reduce the overall environmental and social impacts of its products including transportation,secondary packag

173、ing and material sourcing.Through predictive forecasting and responsive production,the Company is able to drive down lead times and help lower inventory throughout the supply chain with the added benefit of reducing waste and obsolescence and lowering the effects on the environment.In 2025,the Compa

174、ny will be introducing a new code of conduct to ensure that the Companys suppliers adhere to the appropriate standard of safety,fair treatment of employees and ethical practices.Circular Innovation:The Companys product innovation teams work directly with customers to create sustainable products enab

175、ling the circularity of customers primary packaging while supporting end consumer sensitivity to reduce waste in the environment and reduce overall environmental impacts.D)Recent Acquisitions and DispositionsThe Company is globally deployed with significant diversification across the world economy i

176、ncluding emerging markets,a broad customer base,distinct product lines and many different currencies.The Company continues to deploy its cash flow from operations into its core segments with both internal capital investments and strategic acquisitions.The following acquisitions were completed over t

177、he last two years:In June 2024,the Company acquired the remaining 50%interest in its Middle East label joint venture,Pacman-CCL(“Pacman”),for approximately$142.9 million,net of cash acquired.The business commenced trading as CCL Label,with its results fully consolidated subsequent to the acquisition

178、.In August 2023,the Company acquired all the intellectual property of Imprint Energy Inc.(“IEI”),based in Alameda,California,for$26.6 million.IEI is a start-up proprietary technology company with the know-how for ultrathin,non-hazardous and non-toxic printed batteries for devices,sensors and wearabl

179、es.This product line has become part ofCCL Design.In July 2023,the Company acquired privately owned Faubel&Co.Nachfolger GmbH(“Faubel”),headquarteredin Melsungen,Germany,for approximately$169.7 million,net of cash acquired.Faubel is a specialist in labels forpharmaceutical clinical trials globally a

180、nd is reported within CCL Labels Healthcare and Specialty business.In July 2023,the Company acquired privately owned Creaprint S.L.(“Creaprint”)based in Alicante,Spain,forapproximately$37.7 million,net of cash and debt acquired.Creaprint is a specialized producer of in-mould labels andhas been added

181、 to CCL Labels Food&Beverage business.In July 2023,the Company acquired Pouch Partners S.r.l.,(“Pouch”),a subsidiary of Swiss headquartered Capri-SunGroup,based in Milan,Italy,for approximately$39.6 million,net of cash acquired.This business trades as CCL Specialty Pouches and has become an integral

182、 new product offering within CCL Labels Food&Beverage.In July 2023,the Company acquired privately owned Oomph Made Limited(“Oomph”),based in Liphook,UnitedKingdom,for approximately$6.6 million,net of cash acquired.Oomph is a designer and supplier of Radio FrequencyIdentification(“RFID”)and Near-Fiel

183、d Communication(“NFC”)access cards and wristbands and has been added to theCompanys Avery Segment.In April 2023,the Company acquired privately owned eAgile Inc.(“eAgile”),based in Grand Rapids,Michigan,forapproximately$52.2 million,including net cash assumed.eAgile is a start-up technology company w

184、ith proprietary,patented hardware and software solutions for the healthcare industry alongside RFID inlays embedded into labels.Thisbusiness has been integrated into CCL Labels Healthcare&Specialty business.In April 2023,the Company acquired the intellectual property of Alert Systems ApS(“Alert”),ba

185、sed in Hoersholm,Denmark,for$3.2 million.Alerts patent-protected anti-theft solutions are sold alongside Checkpoints MerchandiseAvailability Solutions(“MAS”)product lines.In April 2023,the Company acquired privately owned Data Management,Inc.(“DMI”),based in Farmington,Connecticut,for approximately$

186、10.2 million,net of cash acquired.DMIs tracking and identification badges business has been added to the Avery Segment.112024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)The acquisitions

187、completed over the past few years,in conjunction with the building of new plants around the world,have positioned the CCL Segment as the global leader for labels in the personal care,healthcare,food and beverage,durables,security and specialty categories.Avery is the worlds largest supplier of label

188、s,specialty converted media,and software solutions to enable short-run digital printing in businesses and homes alongside complementary office products.Checkpoint has added technology-driven loss-prevention,inventory-management and labeling solutions,including RF and RFID-based systems,to the retail

189、 and apparel industries.Innovia provides vertical integration,driving the Company deeper into polymer sciences,enhancing the development of proprietary products,including recent investments in sustainably oriented films for its customers.E)Subsequent EventPrior to the release of the 2024 annual fina

190、ncial statements,the Company announced the following:The Board of Directors has declared a dividend of$0.32 per Class B non-voting share and$0.3175 per Class A votingshare,which will be payable to shareholders of record at the close of business on March 17,2025,to be paid on March31,2025.F)Consolida

191、ted Annual Financial ResultsSelected Financial InformationResults of Consolidated Operations2024 2023 2022SalesCost of sales$7,245.0 5,107.3$6,649.6 4,735.2$6,382.24,667.0Gross profitSelling,general and administrative expenses 2,137.7 1,073.0 1,914.4 985.6 1,715.2852.6Earnings in equity-accounted in

192、vestments Net finance cost Revaluation gainGoodwill impairment loss Restructuring and other items 1,064.7 18.9 (75.0)78.1 (5.5)928.8 17.9(78.0)(95.0)(42.8)862.619.9(64.8)(11.7)Earnings before income taxes Income taxes 1,081.2 238.1 730.9 200.7 806.0183.3Net earnings$843.1$530.2$622.7Basic earnings p

193、er Class B share$4.73$2.99$3.50Diluted earnings per Class B share$4.70$2.95$3.48Adjusted basic earnings per Class B share$4.32$3.76$3.57Dividends per Class B share$1.16$1.06$0.96Total assets$9,859.1$8,924.2$8,664.4Total non-current liabilities$3,067.9$2,884.1$2,897.8Comments on Consolidated ResultsS

194、ales were$7,245.0 million for 2024,an increase of 9.0%compared to$6,649.6 million recorded in 2023.This increase in sales is attributable to organic growth of 6.1%,acquisition-related growth of 2.3%and 0.6%positive impact of foreign currency translation.Consistent with 2023,approximately 98%of the C

195、ompanys 2024 sales to end-use customers were denominated in foreign currencies.Consequently,changes in foreign exchange rates can have a material impact on sales and profitability when translated into Canadian dollars for public reporting.The appreciation of the U.S.dollar,euro,and U.K.pound,by 1.5%

196、,1.5%,and 4.3%,respectively,was partially offset by a 5.7%,1.4%and 0.2%depreciation of the Brazilian real,Mexican peso and Chinese renminbi,respectively,relative to the Canadian dollar in 2024 compared to average exchange rates in 2023.122024 Annual ReportSelling,general and administrative expenses(

197、“SG&A”)were$1,073.0 million for 2024,compared to$985.6 million reported in 2023.The increase in SG&A expenses in 2024 relates to general increases across all business segments of the Company and most notably the impact of the nine acquisitions over the last two years.Corporate expenses for 2024 decr

198、eased to$77.6 million,compared to$81.8 million for 2023,primarily due to decreased long-term variable compensation expense as the Company commenced the first year of a three year plan,partly offsetting the aforementioned increase in SG&A.During the second quarter of the year,the Company recorded a r

199、evaluation gain of$78.1 million in conjunction with the acquisition of the final 50%equity interest in Pacman in early June 2024.In accordance with IFRS 3 Business Combinations,the Company was required to re-measure to fair value its previously held 50%interest in Pacman at the acquisition date resu

200、lting in the recognition of the aforementioned non-cash revaluation gain through net earnings.Operating income(a non-IFRS measure;see“Key Performance Indicators and Non-IFRS Measures”in Section 5A)for 2024 was$1,142.3 million,an increase of 13.0%compared to$1,010.6 million for 2023.Foreign currency

201、translation was a 0.1%positive impact to consolidated operating income for 2024 compared to 2023.All Segments,CCL,Avery,Checkpoint and Innovia increased operating income compared to 2023.Further details on the business segments follow later in this report.Adjusted EBITDA in 2024 was$1,497.1 million,

202、an improvement of 12.4%compared to$1,332.1 million recorded in 2023.Excluding the impact of foreign currency translation,the increase was 12.1%over the prior year.Net finance cost was$75.0 million for 2024,compared to$78.0 million for 2023.The 3.8%decrease in net finance cost can primarily be attrib

203、uted to decreased finance costs on reduced interest rates on variable rate debt for 2024 compared to 2023.In the prior year fourth quarter,the Company incurred a non-cash goodwill impairment charge related to the Innovia Segment of$95.0 million with no associated tax benefit.This resulted in a reduc

204、tion of basic earnings of$0.54 per ClassB share.Further details of this impairment are outlined in Section 2E:“Innovia Segment”later in this MD&A.For the full year 2024,restructuring costs and other items represented an expense of$5.5 million($4.8 million after tax)as follows:Restructuring expenses

205、of$3.3 million($2.6 million after tax),primarily related to severance charges in the CCL Segment.Acquisition transaction costs totaled$2.2 million($2.2 million after tax),associated with the Pacman acquisition.The negative earnings impact of the restructuring and other items in 2024 was$0.03 per Cla

206、ss B share.For the full year 2023,restructuring costs and other items represented an expense of$42.8 million($41.2 million after tax)as follows:Restructuring expenses of$41.1 million($39.5 million after tax),primarily related to severance and reorganization costslargely across Innovia,CCL Design and

207、 Checkpoint.Acquisition transaction costs totaled$1.7 million($1.7 million after tax),for the eight acquisitions closed in 2023.The negative earnings impact of the restructuring and other items in 2023 was$0.23 per Class B share.In 2024,the consolidated effective tax rate was 22.4%,compared to 28.2%

208、in 2023,excluding earnings in equity-accounted investments.The combined Canadian federal and provincial statutory tax rate was 26.5%for 2024(2023 26.5%).The notable decline in the effective tax rate can primarily be attributed to the$78.1 million non-taxable revaluation gain in 2024 and the$95.0 mil

209、lion goodwill impairment loss with no associated tax benefit recorded in 2023.Approximately 98%of the Companys sales are to customers outside of Canada,and the income from these foreign operations is subject to varying rates of taxation.The Companys effective tax rate is also affected from year to y

210、ear due to the level of income in the various countries,recognition or reversal of tax losses,tax reassessments and income and expense items not subject to tax.Net earnings for 2024 increased 59.0%to$843.1 million,compared to$530.2 million recorded in 2023 due to the items described above.Basic earn

211、ings per Class B share were$4.73 for 2024 compared to$2.99 recorded for 2023.Diluted earnings per Class B share were$4.70 for 2024 and$2.95 for 2023.The aforementioned revaluation gain increased basic earnings by$0.44 per Class B share in 2024 and the goodwill impairment loss reduced basic earnings

212、by$0.54 per Class B share in 2023.The movement in foreign currency exchange rates in 2024 compared to 2023 had a negative impact on the translation of the Companys basic earnings of$0.02 per Class B share.The diluted weighted average number of shares was 179.5million for 2024,compared to 179.9 milli

213、on for 2023.132024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)Adjusted basic earnings per Class B share was$4.32 for 2024,up 14.9%from$3.76 in 2023.The movement in foreign currency excha

214、nge rates in 2024 versus 2023 had an estimated negative translation impact of$0.02 on adjusted basic earnings per Class B share.This estimated foreign currency impact reflects the currency translation in all foreign operations.As of December 31,2024,the Company had 11.7 million Class A voting shares

215、 and 165.1 million Class B non-voting shares issued and outstanding.In addition,the Company had outstanding 0.5 million restricted stock units to issue 0.5 million Class B non-voting shares under the Restricted Stock Unit Plan,0.1 million restricted stock units to issue 0.1 million ClassB non-voting

216、 shares under the 2017-2025 Long Term Retention Plan,0.1 million restricted stock units to issue 0.1 million ClassB non-voting shares under the 2019 Long Term Retention Plan(collectively,the“RSUs”)and 0.3 million deferred share units(“DSU”)outstanding to issue 0.3 million Class B non-voting shares.L

217、astly,the Company has a performance stock unit(“PSU”)plan to issue up to 1.6 million Class B non-voting shares to participants,provided the financial performance criteria have been achieved and the participants are still employed by the Company.Of the 1.6 million Class B non-voting shares,the issuan

218、ce of 1.4 million Class B non-voting shares under the PSU plan is subject to and conditional upon TSX approval and shareholder approval at the upcoming Annual and Special Meeting of Shareholders in May 2025.G)Seasonality and Fourth Quarter Financial Results2024 UnauditedQtr 1 UnauditedQtr 2 Unaudite

219、dQtr 3 Unaudited Qtr 4 YearSales CCL Avery Checkpoint Innovia$1,094.1 252.8 224.7 165.6$1,139.8 276.9 244.3 184.6$1,152.5 279.7 240.5 177.0$1,116.2 239.7 277.4 179.2$4,502.61,049.1986.9706.4Total sales$1,737.2$1,845.6$1,849.7$1,812.5$7,245.0Segment operating income CCL Avery Checkpoint Innovia$177.6

220、 51.0 37.0 16.4$190.8 60.7 36.7 15.3$179.2 55.2 36.7 17.8$166.1 44.6 40.5 16.7$713.7211.5150.966.2Operating income Corporate expenses Revaluation gain Restructuring and other items Earnings in equity-accounted investments 282.0 19.8 (8.3)303.5 22.8(78.1)2.1(5.0)288.9 17.0 2.2(2.7)267.9 18.0 1.2(2.9)

221、1,142.377.6(78.1)5.5(18.9)Finance cost,net 270.5 18.0 361.7 18.6 272.4 19.3 251.6 19.1 1,156.275.0Earnings before income taxes Income taxes 252.5 60.4 343.1 63.6 253.1 61.4 232.5 52.7 1,081.2238.1Net earnings$192.1$279.5$191.7$179.8$843.1Per Class B share Basic earnings$1.08$1.56$1.08$1.01$4.73Dilut

222、ed earnings$1.07$1.55$1.07$1.01$4.70Adjusted basic earnings$1.08$1.13$1.09$1.02$4.32142024 Annual Report2023 UnauditedQtr 1 UnauditedQtr 2 UnauditedQtr 3 UnauditedQtr 4 YearSales CCL Avery Checkpoint Innovia$1,013.1 260.3 210.4 168.3$995.5 268.0 210.5 170.5$1,064.6 269.5 210.1 146.3$1,031.5 242.1 24

223、4.2 144.7$4,104.71,039.9875.2629.8Total sales$1,652.1$1,644.5$1,690.5$1,662.5$6,649.6Segment operating income CCL Avery Checkpoint Innovia$165.4 50.6 30.8 10.9$144.0 50.3 28.1 19.6$169.7 50.7 28.8 6.9$154.4 47.9 44.3 8.2$633.5199.5132.045.6Operating income Corporate expenses Goodwill impairment loss

224、 Restructuring and other items Earnings in equity-accounted investments 257.7 19.9 0.8(3.1)242.0 21.3 2.9(5.0)256.1 16.7 1.9(5.2)254.8 23.9 95.0 37.2(4.6)1,010.681.895.042.8(17.9)Finance cost,net 240.1 19.4 222.8 19.2 242.7 20.3 103.3 19.1 808.978.0Earnings before income taxes Income taxes 220.7 54.

225、3 203.6 47.7 222.4 53.3 84.2 45.4 730.9200.7Net earnings$166.4$155.9$169.1$38.8$530.2Per Class B share Basic earnings$0.94$0.88$0.95$0.22$2.99Diluted earnings$0.93$0.88$0.94$0.20$2.95Adjusted basic earnings$0.94$0.90$0.95$0.97$3.76Fourth Quarter Results Sales for the fourth quarter of 2024 increased

226、 9.0%to$1,812.5 million,compared to$1,662.5 million recorded in the 2023 fourth quarter.This increase was due to organic growth of 6.8%,acquisition-related growth of 1.4%,and a positive impact from foreign currency translation of 0.8%.The CCL,Checkpoint and Innovia Segments recorded organic sales gr

227、owth rates of 5.4%,13.3%and 20.2%,respectively,while Avery posted an organic decline of 2.0%.Organic growth at the CCL Segment was driven by strong results in Home&Personal Care,CCL Design and CCL Secure partly offset by softness in Healthcare&Specialty and Food&Beverage.Avery sales declined on weak

228、 International demand more than offsetting growth in North America aided by foreign exchange benefits in Mexico compared to the 2023 fourth quarter.Checkpoint posted strong sales gains in both MAS and Apparel Labelling Solutions(“ALS”)with continued strength in RFID products.However,profitability de

229、clined on less favourable product mix,weak results in Latin America and foreign exchange challenges in Turkey in ALS with MAS results held by startup costs at the new RFID plant in Mexico.Higher demand in the label materials industry improved Innovias sales and profitability compared to the fourth q

230、uarter of 2023.Operating income in the fourth quarter of 2024 increased 5.1%to$267.9 million,compared to$254.8 million in the fourth quarter of 2023.For the fourth quarter of 2024,the CCL Segment and Innovia improved operating income 7.6%and 103.7%,respectively,partly offset by declines for Avery an

231、d Checkpoint of 6.9%and 8.6%,respectively.Sales gains for the CCL Segment and Innovia drove increases in profitability offsetting slower demand for Avery and results for Checkpoint that were impacted by start-up costs in Mexico.152024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended Dece

232、mber 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)Corporate expenses were$18.0 million in the fourth quarter of 2024,compared to$23.9 million recorded in the prior-year period.The decrease in corporate costs is principally attributable to a decrease in long-

233、term variable compensation for the comparable periods.Adjusted EBITDA increased 7.4%to$361.6 million for the fourth quarter of 2024 compared to$336.7 million for the 2023 comparable period.Adjusted EBITDA increased due to the improvements in the CCL and Innovia segments partially offset by declines

234、for Avery and Checkpoint.Net finance cost was$19.1 million for the fourth quarters of both 2024 and 2023.In the fourth quarter of 2023,the Company incurred a non-cash goodwill impairment charge of$95.0 million related to the Innovia Segment with no associated tax benefit.The negative earnings impact

235、 from this impairment loss was$0.54 per Class B share.Further details of this impairment are outlined in Section 2E:“Innovia Segment”later in this MD&A.For the fourth quarter of 2024,restructuring costs and other items represented an expense of$1.2 million($1.0 million after tax)as follows:Restructu

236、ring expenses primarily related to severance charges in the CCL Segment.The negative earnings impact of the restructuring and other items for the 2024 fourth quarter was$0.01 per Class B share.For the fourth quarter of 2023,restructuring costs and other items represented an expense of$37.2 million($

237、36.8 million after tax)as follows:Restructuring expenses primarily related to severance and reorganization costs for the closure of Innovias Belgiumfacility.Acquisition transaction costs totaled$1.3 million($1.3 million after tax),principally for the Faubel acquisition.The negative earnings impact o

238、f the restructuring and other items for the 2023 fourth quarter was$0.21 per Class B share.Tax expense in the fourth quarter of 2024 was$52.7 million,resulting in an effective tax rate of 22.9%compared to$45.4million and an effective tax rate of 57.0%in the prior-year period.The decline in the effec

239、tive tax rate for the fourth quarter of 2024 can principally be attributed to a$95.0 million goodwill impairment loss recorded in the fourth quarter of 2023 without an associated tax benefit.Net earnings in the fourth quarter of 2024 were$179.8 million,compared to net earnings of$38.8 million in the

240、 fourth quarter of 2023 due to the items noted above.Basic earnings per Class B share were$1.01 in the fourth quarter of 2024,compared to$0.22 in the fourth quarter of 2023.Innovias goodwill impairment charge and associated restructuring costs for the closure of the Belgium operation reduced basic e

241、arnings by$0.75 per Class B share in 2023.The movement in foreign currency exchange rates in the fourth quarter of 2024 compared to the fourth quarter of 2023 had a negative impact of$0.01 on basic earnings per Class B share.Adjusted basic earnings per Class B share improved 5.2%to$1.02 for the four

242、th quarter of 2024,compared to$0.97 in the corresponding quarter of 2023.Summary of Seasonality and Quarterly ResultsFor the CCL Segment and Innovia,the first and second quarters are generally the strongest due to the number of workdays and various customer-related activities.Also,there are many pro

243、ducts that have a spring-summer bias in North America and Europe such as horticultural labels,agricultural chemicals and certain beverage products,which generate additional sales volumes for the Company in the first half of the year.The polymer banknote business within the CCL Segment experiences in

244、tra-quarter variations in sales influenced by central banks reorder volatility.For Avery,the third quarter has historically been its strongest as it benefits from increased demand related to back-to-school activities in North America,although the impact is expected to diminish in future periods on s

245、ecular declines in low-margin ring binder sales and the expansion of Averys direct-to-consumer businesses that do not have this seasonal bias.For Checkpoint,the second half of the calendar year is healthier as the business substantially follows the retail cycle of its customers,which traditionally e

246、xperiences more consumer activity from September through to the end of the year and prepares for the same in its supply chain from mid-year on.Checkpoints year-over-year comparative quarterly results often include one-time large chain-wide,customer-driven hardware installations that strengthen futur

247、e reoccurring label revenues.New RFID applications are also developing in the food,logistics and healthcare markets.Sales in the final quarter of the year are negatively affected in North America by Thanksgiving and globally by the Christmas and New Year holiday season shutdowns.162024 Annual Report

248、Sales and net earnings comparability between the quarters of 2024 and 2023 were impacted by regional economic variances,the impact of foreign currency changes relative to the Canadian dollar,the impact of volatile energy and commodity markets stemming from geopolitical issues in Europe and the Middl

249、e East,supply chain challenges,the timing of acquisitions,the effect of restructuring initiatives,the impact of central bank reorder patterns,the uptick in electronics markets,the rebound in demand in the pressure sensitive materials industry,tax adjustments and other items.The CCL Segment posted or

250、ganic growth every quarter of 2024 compared to the same periods in 2023,principally driven by demand improvements for CCL Design electronics and Home&Personal Care markets.Geographically,gains in Latin America and China quarterly outperformed other markets.Within CCL Secure,the passport component bu

251、siness outperformed while the polymer banknote business was solid in Mexico,the U.K.and Australian sites lagged.For Avery,in North America the direct-to-consumer name badge,event badge,wristbands and horticultural categories improved comparatively,in almost every quarter,to each quarter of 2023.Back

252、-to-school results in this legacy category exceeded the 2023 third quarter.Checkpoint recorded year-over-year quarterly improvements in MAS and ALS,the latter driven by significant gains in RFID-related products.Innovia also posted year-over-year quarterly sales gains for the final three quarters of

253、 2024 influenced by increased demand in the labels materials industry.2.BUSINESS SEGMENT REVIEWA)GeneralAll divisions of the Company invest capital and management effort to develop world-class manufacturing operations,with spending allocated to geographic expansion,cost-reduction projects,the develo

254、pment of innovative products and processes,the maintenance and expansion of existing capacity and the continuous improvement in health and safety in the workplace,including environmental management.The Company also makes strategic acquisitions for global competitive advantage,servicing large custome

255、rs,taking advantage of new geographic markets,finding adjacent and new product opportunities,developing new customer segments,building infrastructure and improving operating performance.Avery,Checkpoint and the CCL Design business within the CCL Segment are less capital intensive as a percentage of

256、sales than the Companys other businesses.Further discussion on capital spending is provided in the individual segment discussion sections below.Although each segment is a leader in market share or has a significant position in the markets it serves in each of its operating locales,it also generally

257、operates in a mature and competitive environment.For a number of years,consumer products and healthcare companies have experienced steady pressure to maintain or even reduce prices to their major retail and distribution channels,which has driven significant consolidation in the Companys customer bas

258、e.This has resulted in many customers seeking supply chain efficiencies and cost savings in order to maintain profit margins.Volatile commodity costs,including inflationary pressures and cooling periods can create challenges to manage pricing with customers.These dynamics have been an ongoing challe

259、nge for the Company and its competitors,requiring greater management and financial control and flexible cost structures.Unlike some of its competitors,the Company has the financial strength to invest in the equipment and innovation necessary to constantly strive to be the highest value-added produce

260、r in the markets that it serves.The costs of many of the key raw material inputs for the Company,such as plastic films and resins,paper,specialty chemicals and aluminum,are largely dependent on the supply and demand economics within the petrochemical,energy and base metals industries.Checkpoint purc

261、hases component parts including circuit boards,memory chips and other electronic modules from third parties.The significant cost fluctuations for these inputs can have an impact on the Companys profitability.The Company generally has the ability,due to its size and the use of long-term relationships

262、 with both suppliers and customers,to mitigate volatility in purchased costs and,where necessary,to pass these on to the market in higher product prices.However,Innovia and parts of the CCL Segment can experience delays in price adjustments,up or down,to customers due to the nature of their respecti

263、ve relationships and contractual pricing terms.Innovias pricing mechanisms are more complex,involving multiple indices for polypropylene used by customers and suppliers and differing terms in customer agreements when trigger points are arrived at for price changes.The success of the Company is depen

264、dent on each business managing the cost-and-price equation with suppliers and customers.172024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)A driver across the Company for maximizing opera

265、ting profitability is the discipline of pricing customer agreements based on size and complexity,including consideration for fluctuations in raw materials and packaging costs,manufacturing run lengths and available capacity.This approach facilitates effective asset utilization and relatively higher

266、levels of profitability.Performance is generally measured by product against estimates used to calculate pricing,including targets for scrap and output efficiency.An analysis of total utilization versus capacity available per production line or facility is also used to manage certain divisions of th

267、e business.In most of the Companys operations,the measurement of each sales order shipped is based on actual selling prices and production costs to calculate the amount of actual profit margin earned and its return on sales relative to the established benchmarks.This process ensures that pricing pol

268、icies and production performance are aligned in attaining profit margin targets by order,by plant and by division.Management believes it has both the financial and non-financial resources,internal controls and reporting systems and processes in place to execute its strategic plan,to manage its key p

269、erformance drivers and to deliver targeted financial results over time.In addition,the Companys internal audit function provides another discipline to ensure that its disclosure controls and procedures and internal control over financial reporting will be assessed on a regular basis against current

270、corporate standards of effectiveness and compliance.The Company is not particularly dependent upon specialized manufacturing equipment.Most of the technology employed by the production sites can be sourced from multiple suppliers.The Company,however,has the resources to invest in large-scale project

271、s to build infrastructure in current and new markets because of its financial strength relative to that of many of its competitors.Direct competitors in parts of the CCL Segment are often smaller and may not have the financial resources to stay current in maintaining state-of-the-art facilities.Cert

272、ain new manufacturing lines take many months for suppliers to construct,and any delays in delivery and commissioning can have an impact on customer expectations and the Companys profitability.Innovia,in addition to its unique method for producing some of its films for label and packaging application

273、s,also provides the Company with the know-how and material science capability to develop proprietary substrates.Finally,the Company also uses strategic partnerships as a method of obtaining exclusive technology in order to support growth plans and to expand its product offerings.The Companys major c

274、ompetitive advantage is based on its strong customer service,process technology,the know-how of its people,market-leading brand awareness and loyalty,and the ability to develop proprietary technologies and manufacturing techniques.During 2022,the Company commenced operations of its new proprietary“E

275、coFloat”shrink films manufacturing line.This hybrid polyolefin film facilitates easy separation from primary bottle packaging to aid customers bottle-to-bottle circular recycling initiatives globally.The Company is currently constructing a new film manufacturing plant in Germany that will produce th

276、in-gauge sustainable film for the labels materials industry,and start-up is expected during the first half of 2025.The expertise of the Companys employees is a key element in achieving the Companys business plans.This know-how is broadly distributed throughout the world;therefore,the Company is gene

277、rally not at risk of losing its competency through the loss of any particular employee or group of employees.Employee skills develop through on-the-job training and external technical education,enhanced by the Companys entrepreneurial culture of considering creative alternative applications and proc

278、esses for its products.The nature of the research carried out by the CCL Segment can be characterized as application or process development.The Company spends meaningful resources on assisting customers to develop new and innovative products.While customers regularly come to CCL with concepts and re

279、quest assistance to develop products,the Company also takes its own new ideas to the market.Proprietary information is protected by confidentiality agreements and by limiting access to its manufacturing facilities.The Company values the importance of protecting its customers brands and products from

280、 fraudulent use and,consequently,is selective in choosing appropriate customer and supplier relationships.Avery has a strong commitment to understanding its ultimate end users,actively seeking product feedback and using consumer focus groups to drive product development initiatives.Furthermore,it le

281、verages the wider Companys technology to deliver product innovation that aligns with consumer trends for digitally imaged labels,cards,badges and wristbands.Avery has also invested in many direct-to-consumer businesses globally and encourages the cross-pollination of unique products and best practic

282、es.Checkpoint has always been an innovator in its industry,with a strong dedication to research and development activities.It was a pioneer of RF electronic-article-surveillance hardware and consumables.Checkpoint has made further advances with the active enhancement and deployment of RFID solutions

283、,including inventory management software,to the broad retail industry where apparel has been the largest adopter.New RFID applications are also developing in the food,logistics and healthcare markets.Innovia maintains a world-class research and development centre specifically dedicated to the suppor

284、t of films for label,security and packaging applications.The new discoveries and product enhancements generated from this centre are deployed globally,sometimes benefitting downstream businesses such as CCL Secure and CCL Label.182024 Annual ReportThe Company continues to invest time and capital to

285、upgrade and expand its information technology systems and security.This investment is critical to keeping pace with customer requirements and gaining or maintaining a competitive edge.Software packages are,in general,off-the-shelf systems customized to meet the needs of individual business locations

286、.The CCL Segment,Avery,Checkpoint and Innovia communicate with many customers and suppliers electronically,particularly with regard to supply-chain-management solutions and when transferring and confirming design formats and colours.A core attribute of Averys printable media products is the customiz

287、ed software to enable short-run digital printing in businesses and homes.Avery recognizes that it is critical to develop its software solutions to maintain its market-leading position with consumers.Avery launched WePrint,expanding its direct-to-consumer software solutions,and acquired the e-commerc

288、e platforms of 21 companies over the past ten years,to leverage acquired digital printing software into the pre-existing Avery suite.Avery products are most often sold under the market-leading Avery brand,with equal prominence in German-speaking countries,the Zweckform brand and,within Brazil,the Ad

289、elbras brand.At Checkpoint,products are predominantly sold under the Checkpoint brand and,for retail merchandising products in Europe and Asia Pacific,the Meto brand.The Company recognizes that in order to maintain the pre-eminent positions for Avery,Zweckform,Adelbras,Checkpoint and Meto,it must co

290、ntinually invest in promoting these brands.Product quality,innovation and performance are recognized attributes for the success of these brands.CCL Industries has spent the past two years developing the Companys science-based sustainability targets in alignment with best practices in the industry an

291、d the priorities of its global customers.The Company is excited to announce its final targets which have been approved by the Science-Based Targets initiative.These goals will guide our Companys sustainability priorities for the next twenty-five years.CCL Industries,Inc.has committed to:Reduce absol

292、ute Scope 1 and Scope 2 emissions 50%by 2030 from a 2022 base year Engage 85%of suppliers by spend to set science-based sustainability targets by 2030 Reach net-zero greenhouse gas emissions across the value chain by 2050 Reduce absolute greenhouse gas emissions from Scope 1,Scope 2 and select Scope

293、 3 categories 90%by 2050 froma 2022 base yearYou can read more in the Companys Sustainability Report for 2023.The 2024 report will be published during the first half of 2025.Business Segment Results2024 2023Segment sales CCL Avery Checkpoint Innovia$4,502.6 1,049.1 986.9 706.4$4,104.71,039.9875.2629

294、.8Total sales$7,245.0$6,649.6Operating income*CCL Avery Checkpoint Innovia$713.7 211.5 150.9 66.2$633.5199.5132.045.6Operating income$1,142.3$1,010.6*This is a non-IFRS measure.Refer to“Key Performance Indicators and Non-IFRS Measures”in Section 5A.Comments on Business Segments The above summary inc

295、ludes the results of acquisitions on reported sales and operating income from the date of acquisition.192024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)B)CCL Segment There are five custo

296、mer sectors inside the CCL Segment.The Company trades in three of them as CCL Label(with Label substituted,as relevant,for Tube and Container product lines)and one each as CCL Design and CCL Secure.The differentiated CCL sub-branding points to the nature of the application for the final product.The

297、sectors have many common or overlapping customers,process technologies,information technology systems,raw material suppliers and operational infrastructures.CCL Label supplies innovative specialized label,plastic tube,aluminum aerosol and specialty bottle solutions to Home&Personal Care and Food&Bev

298、erage companies.It also supplies regulated and complex multi-layer labels and specialty folding cartons for major pharmaceutical,consumer medicine,medical instrument and industrial or consumer chemical customers referred to as the Healthcare&Specialty business.CCL Design supplies long-life,high-perf

299、ormance labels and complex engineered parts to automotive,electronics and durable goods companies.CCL Secure supplies polymer banknote substrate,pressure sensitive stamps,passport components,ID cards and other security documents to government institutions.The Segments product lines include pressure

300、sensitive labels,shrink sleeves,stretch sleeves,in-mould labels,precision printed and die cut metal,glass and plastic components,expanded content labels,pharmaceutical instructional leaflets,specialty folded cartons,graphic security features,extruded or labeled plastic tubes,aluminum aerosols or spe

301、cialty bottles and printed polymer security film substrates.It currently operates 157 production facilities,located in Canada,the United States(including Puerto Rico),Argentina,Australia,Austria,Brazil,Chile,China,Denmark,Egypt,France,Germany,Hungary,Ireland,India,Indonesia,Israel,Italy,Korea,Malays

302、ia,Mexico,the Netherlands,New Zealand,Oman,Pakistan,Philippines,Poland,Russia,Saudi Arabia,Singapore,South Africa,Spain,Switzerland,Thailand,Turkey,UnitedArab Emirates,the United Kingdom and Vietnam.Four of these plants are connected to the equity investments in CCL-Kontur which are included in the

303、above locations.This segments industry is made up of a very large number of competitors that manufacture a vast array of decorative,product information,identification and security label-type applications.The Company believes that CCL is one of the largest consolidated operators in most of its define

304、d global market sectors.Competition often comes from single-plant businesses,invariably owned by private operators who compete with the Segment in local markets.There are also a number of multi-plant competitors in certain regions of the world and a handful of specialists in a single market segment

305、globally.However,there are few major competitors with the product breadth,global reach and scale of the CCL Segment.The Company has completed numerous label business acquisitions,strategic joint ventures and greenfield start-ups geographically and added new product offerings to position CCL Label as

306、 a global leader in the Home&Personal Care,Food&Beverage and Healthcare&Specialty end markets.CCL Design is an equally significant financial and geographic market for the CCL Segment,principally focused on the automotive,electronics and durable goods markets.The high-security,specialized polymer ban

307、knote,passport,postage stamp and government document printing operations form an integral part of CCL Secure.CCL produces labels predominantly from polyolefin films and paper partly sourced from extruding,coating and laminating companies,using raw materials primarily from the petrochemical and paper

308、 industries.CCL also coats and laminates pressure sensitive materials in house and is generally able to mitigate the cost volatility of third-party-sourced materials due to a combination of purchasing leverage,agreements with suppliers and its ability to pass on these cost increases to customers.In

309、the label industry,price changes regularly occur as specifications are constantly changed by marketers and,as a result,the selling prices of these labels are updated,reflecting current market costs and new shapes and designs.CCLs global customers expect a full range of product offerings in more geog

310、raphic regions,further integration into their supply chain at a global level and protection of their brands,particularly in markets where counterfeiting is rife.These requirements put many of the Segments competitors at a disadvantage,as do the investment hurdles for infrastructure,converting equipm

311、ent and technologies to deliver products,services and innovations.Having trusted and reliable suppliersis an important consideration for global consumer product companies,major pharmaceutical companies,OEMs in the durable goods business and,of course,central banks.This is even more important in an u

312、ncertain economic environment when many smaller competitors may encounter difficulties and customers want to ensure their suppliers are financially viable.CCL considers customers demand levels,particularly in North America and Western Europe,to be reasonably mature and,as such,will continue to focus

313、 its expansion plans on innovative and higher growth and value-added product lines within those geographies,with a view to improving overall profitability.In Asia,Latin America and other emerging markets,a higher level of economic growth is still expected over the coming years,despite the slower con

314、ditions experienced in the past few years.This should provide opportunities for the Segment to improve market share and increase profitability in these regions.Furthermore,there is close alignment of label demand to consumer staples,with the exception of CCLDesign and CCL Secure,which are completely

315、 aligned to the automotive,electronics and durable goods industries,202024 Annual Reportand to government institutions and central banks,respectively.Management believes the Segment will attain the sales volumes,geographic distribution and reach mirroring those of its customers over the next few yea

316、rs through its focused strategy and by capitalizing on following customer trends.CCL Segment Financial Performance2024%Growth 2023Sales$4,502.6 9.7%$4,104.7Operating income$713.7 12.7%$633.5Return on sales15.9%15.4%Sales in the CCL Segment for 2024 increased 9.7%to$4,502.6 million,compared to$4,104.

317、7 million in 2023,due to organic growth of 5.6%,acquisition-related growth of 3.5%and 0.6%positive impact from foreign currency translation.Sales in 2024 for North America were up low single digit,excluding the impact of currency translation and acquisitions,compared to 2023.Home&Personal Care sales

318、 and profitability increased on strong demand for aluminum containers and labels only partly offset by a decline in profitability for tubes.Healthcare&Specialty results were mixed,with modestly improved AgChem results,especially in the consumer lawn and garden space,more than offset by slower demand

319、 in Healthcare.Food&Beverage results declined in soft end markets.CCL Design North America sales and profitability improved on gains in automotive and electronics markets.CCL Secure sales and profitability increased dramatically on robust demand for passport components.Overall profitability and retu

320、rn on sales declined compared to 2023.European sales increased low single digit for 2024,excluding currency translation and acquisitions,compared to 2023.Home&Personal Care recorded modest organic sales growth but significant profitability improvement driven by improved demand and productivity gains

321、 compared to a weak prior period.Healthcare&Specialty sales and profitability gains were entirely attributable to the acquisition of Faubel in the third quarter of 2023 and significantly improved results for AgChem operations.Food&Beverage results were mixed with improvements in pressure sensitive a

322、pplications partly offset by reduced results for Sleeves and start-up losses at new operations in Italy and Spain.CCL Design improved on profitability gains in automotive markets as well as increased demand in European electronics markets.CCL Secure sales and profitability declined on slow demand an

323、d poor sales mix.Overall European sales and profitability improved largely due to the favourable impact of acquisitions and foreign exchange translation.2024 sales in Latin America,excluding currency translation,improved almost double digits compared to 2023.Strong profitability improvements in all

324、lines of business in Mexico outpaced organic sales growth,including a slight devaluation of the peso.In Brazil,sales and profitability improved significantly,with considerable gains in pressure sensitive applications offsetting a slight decline for Sleeves.Underlying sales and profitability improvem

325、ents in Argentina were offset by the impact of currency devaluation.Chile recorded a profit in 2024 compared to a loss in the prior year.Operating income and return on sales improved compared to 2023.Asia Pacific 2024 sales,excluding acquisitions and currency translation,were up double digits compar

326、ed to 2023.Sales in China increased mid-single digit but profitability increased significantly,driven by significant sales and profitability gains at CCL Design Electronics and improvements at CCL Label more than offsetting soft automotive results.Results in ASEAN countries were also strong overall

327、with especially robust profitability gains in Malaysia,Singapore and Thailand driven by stronger electronics markets,new customer wins and favourable sales mix,respectively.In Australia,sales and profitability improved on solid demand for labels and improvements at CCL Secure.Sales and profitability

328、 improved dramatically in South Africa.For the Asia Pacific region,operating income and return on sales improved significantly.Sales and profitability exceeded expectations for the Middle East subsequent to the acquisition and consolidation of Pacman in early June 2024.Operating income for the CCL S

329、egment increased by 12.7%to$713.7 million for 2024 compared to$633.5 million for 2023,principally due to the strong results in Asia Pacific and Latin America.Foreign currency translation also had a positive effect of 0.2%on 2024 operating income compared to 2023.Operating income as a percentage of s

330、ales improved to 15.9%for 2024 compared to 15.4%for 2023.The CCL Segment invested$323.7 million in capital spending in 2024 compared to$324.7 million last year.The major expenditures were for equipment installations and new plants to support capacity additions globally.Depreciation and amortization,

331、excluding amortization on right-of-use assets,for the CCL Segment was$264.5 million in 2024,compared to$236.5 million in 2023.212024 Annual ReportMANAGEMENTS DISCUSSION AND ANALYSIS Years ended December 31,2024 and 2023(Tabular amounts in millions of Canadian dollars,except per share data)C)AveryAve

332、ry is one of the worlds largest supplier of labels,specialty converted media and software solutions to enable short-run digital printing in businesses and homes alongside complementary products sold through distributors and mass-market retailers and pressure sensitive tapes in Brazil.The products ar

333、e split into five primary lines:(1)Printable Media(“PMG”):including address labels,product identification labels and name badges/cards supported by customized software solutions where applicable;(2)Organization Products(“OPG”):including binders,indexes,sheet protectors,and writing instruments;(3)Direct-to-Consumer:digitally imaged labels,name&event badges,RFID enabled key cards&wristbands,planners