AVY
#We saw a little bit of modest inflation that we talked about last quarter, but we've seen relative stability.
And individual components, Jeff, move different directions, but on balance is where we're seeing things fairly muted, if you will.
So that is what we are referring, to not any individual components.
You are absolutely right.
What you are seeing is what we're seeing, for that component.
What we do is, when there is inflation ---+ so if we were to start seeing inflation, we go through, and we will announce price increases on which products or which regions, it is affecting.
And a good example of that is, last year, we were still in a relatively deflationary environment.
We raised prices within filament categories, within Europe.
So we went out and announced it, and pushed it through.
You've really got to think through, with the commodities we're seeing, it is different in US dollars or if you are in Euros, and so we basically make adjustments, and we will put price increases through, where we see inflation.
They are very small, so we don't want to disclose all the details about them, but I can tell you the Ink Mill acquisition just has a few million dollars of revenue, so very small.
It is a business that is really investing in our high-value Reflectives business, but it's also a capability we think we can leverage elsewhere within the portfolio as well.
They make UV and UV LED curable inks, and as part of our TrafficJet solution within that business.
On PragmatIC, that was an investment that was earlier in October, so it is not in the results right now.
That is a minority investment.
, there was an GBP18 million funding round that PragmatIC went through.
We were less than half of that, I will say.
Europe, broadly speaking, gets the benefit of Eastern Europe emerging markets.
And, Eastern Europe, this quarter, is what really was a key driver for them.
Actually, pretty consistently for the past years, even Western Europe, we've talked about growth being higher than the US.
There's a number of factors behind that.
We cannot point to any one.
One of them is regulatory requirements around larger label sizes and so forth.
There is not one thing I can point to, that is one example.
But to be honest, the differential between the US and Western Europe has pretty much consistently been a little bit bigger than we would have even expected.
I'm talking the market level not just our performance.
Not a particular market, no.
It was relatively broad-based.
You're welcome.
I would say, it is as good and getting better.
(laughter) Basically, a year or so ago, we were talking about getting it into an inflection point and starting to see some customers adopt.
We have seen that, but it is really hard to call when that will happen to the point that you raise.
Next year, we expect this business to be double-digit growth.
It could be just over 10%, or could be 30%.
Timing specifically is hard to tell, but over the long run, we talk about this business being a 20% growth business and that is what we continue to expect.
I think it is more retailer by retailer, and brand by brand, them going through the process.
It's a pretty big shift in how they do things, how they think about running their supply chains.
The returns have been strong ---+ very strong the last years, for adoption, it is just each business, each customer, needs to go through that assessment and evaluation.
And the reason pilots can take so long, and the early adoption phase can take a while, is purely because of the change in adjustments they need to make.
Is really a balance between driving the growth strategy, as well as driving further productivity.
If you look at the business, we've consistently delivered over half-point a year of margin expansion, regardless of what is going on the top line.
If you look over the last few years, we have grown this business 2.5%.
So our objective here is to ensure we can get those margin target, even in a lower-growth scenario than the 4% to 5% we had targeted.
We will get there, even in this lower-growth environment, and ensuring there is upside as we develop and push through our growth strategies.
So that will we start achieving that 4% to 5% growth, which is still our goal, you will then have further uplift from there.
The mix was primarily in two different areas.
First, was the customer application that we had discussed in the Personal Care space, for Tapes.
The second piece was North America.
Primarily in the high-value segments, we've been talking about the North America volumes as well.
Those were the two pieces in the mix.
It was geo mix, as well as the customer tapes.
As far as ---+
As far as on the geo mix comment, <UNK>, our margins we've said are higher where we have higher relative market share.
In North America, we have relatively-high relative market share.
In the 53rd week, that was really 2014, 2015 impact, so you really wouldn't see anything for 2016.
Thank you.
Okay.
Thank you.
Thanks, everybody for joining the call.
Again, I'm pleased with the progress we're making against both our strategic and financial objectives, and we remain committed to achieving our long-term targets for value creation.
I want to thank the entire team, within Avery Dennison, for their hard work and commitment to our success.
So, thank you.
