Avery Dennison Corp. beat Wall Street estimates for its fourth-quarter earnings and revenue, with its bottom line increasing 31 percent year-over-year, driven by increased demand for label and packaging materials.

The Glendale materials manufacturer on Wednesday reported an adjusted net income of $191 million ($2.27 a share) for the quarter ending Jan. 2, a significant increase from $147 million ($1.92) in the same period a year earlier. Revenue increased by 12 percent to $1.99 billion.

Analysts on average expected earnings of $2.17 on revenue of $1.93 billion, according to the Zacks Consensus Estimate.

“We were able to protect, even expand, margins, despite pandemic-related market declines particularly in the second quarter,” Mitch Butier, chief executive of Avery Dennison, said in a statement. “Underlying label demand in (label and graphic materials), our largest business, remained strong throughout the downturn, while volume trends improved sequentially in (retail branding and information solutions) and (industrial and health care materials) in the second half. (Radio frequency identification) grew significantly due to continued strong organic growth and the acquisition of Smartrac.”

The Glendale company bought Amsterdam-based Smartrac’s transponder division for $249 million, with the deal closing last March, Avery said.

Added Butier: “As we enter 2021, we remain confident in our ability to continue to make progress toward our long-term goals, including consistent delivery of GDP+ growth and top-quartile return on capital.”

Shares of Avery Dennison (AVY) on Friday closed up $3.33, or nearly 2 percent, to $173.09 on the New York Stock Exchange.