“We had another strong quarter,” said Mitch Butier, President, President and CEO. “LGM and RBIS both recorded impressive growth in revenue and bottom line, with continued momentum for smart labels. This strong performance comes during a difficult time given the current global health crisis, as supply chains remain strained and significant inflationary pressures continue to build.
“Based on our performance in the third quarter, we have raised our outlook for the full year as we continue to generate significant earnings growth,” added Butier. “We are also delighted that the acquisition of Vestcom, a company which further strengthens our position in high value categories in RBIS and which has the potential to advance our smart label strategy, was completed during the quarter. . “
In the third quarter, uncertainty surrounding the global health crisis remained high as parts of the world saw an increase in COVID-19 cases, particularly in South Asia. The biggest impact of the increase in COVID-19 cases for the company has been in Vietnam, particularly in RBIS, which was significantly limited for most of the quarter. While some manufacturing sites were operating well below full capacity, the company leveraged its global reach to minimize disruption for customers. All manufacturing sites are now largely operational.
Third quarter 2021 results by segment
Reported sales of Label and Graphic Materials increased 18% to $ 1.3 billion. Compared to the previous year, sales increased by 15% excluding taxes. change (12% vs. 2019) and 14% organically (11% vs. 2019). The reported operating margin decreased 140 basis points to 13.7%.
Retail Branding and Information Solutions sales increased 25% to $ 531 million. Compared to the previous year, sales increased by 22% excluding taxes. currencies (29% vs. 2019) and 14% organically (9% vs. 2019), reflecting strong growth both in high value-added product categories and in core businesses. Intelligent Labels is up organically by around 15% (40% compared to 2019). The published operating margin is stable compared to the previous year at 11%.
Reported sales of Industrial and Healthcare Materials increased 24% to $ 195 million. Compared to the previous year, sales increased by 20% excluding VAT. change (11% vs. 2019) and 15% on an organic basis (6% vs. 2019), reflecting a sharp increase in adolescents in industrial categories and a single-digit increase in healthcare categories. The reported operating margin increased 170 basis points to 9.6%.