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  "documentTitle": "Avery Dennison Corporation (AVY)",
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  "authorName": "Ben Axler",
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  "presentationDate": "2020-11-10 00:00:00",
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  "notes": "Uses a call-and-response format to highlight skepticism regarding corporate margin reporting.",
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      "text": "To grow margin, we have to incorporate innovation, which is a really difficult hill to climb. We can do it in pieces and parts, but there are not a lot of super large opportunities to expand margins in that space.",
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      "text": "Spruce Point Question: \"Avery shows generally stable operating margins in Labels and Graphics over the past 5 years, but their adjusted results show substantial margin gains. Do you think this is accurate?\"",
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      "text": "We asked a former Avery employee tasked with pricing and revenue initiatives in the Label and Graphic segment for his views on Avery's margin increase as well as an industry consultant with 50 years of experience. It was clear to both experts that increasing margins is challenging.",
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      "text": "I think the margins have gone down.",
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      "text": "The answer depends on what Wall street wants: sales or earnings growth? We received guidance on a regular basis, and the bottom line is we always had to grow margins. I will say growing margin is very hard to do. I specifically have a lot of experience in that area given I was on the pricing side. I really considered myself more in margin management. In times of inflation, it was incumbent to manage the price increase process to pass along inflation to customers. To grow margin, we have to incorporate innovation, which is a really difficult hill to climb. We can do it in pieces and parts, but there are not a lot of super large opportunities to expand margins in that space. I saw restructuring every two years, and in some cases, more frequent than that. Avery does a very good job in cost management.",
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      "text": "I will say growing margin is very hard to do. I specifically have a lot of experience in that area given I was on the pricing side. I really considered myself more in margin management. — Former Avery Global Pricing and Revenue Specialist",
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      "kind": "title",
      "text": "Spruce Point's Research On Avery's Label And Graphic Margins",
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