Full Year

  • Reported net sales of $1.833 billion, with gross margin expanding 420 basis points
  • Operating income of $45 million; adjusted operating income grew 17% to $205 million
  • Loss per share of $(0.23); adjusted EPS of $1.09, above the Company’s outlook
  • Net operating cash flow improved $51 million, generated adjusted free cash flow of $118 million
  • Reduced total debt by $88 million with a consolidated net leverage ratio of 3.4x at year-end

Fourth Quarter Results

Net sales decreased by 2.2% to $488.6 million in 2022, primarily due to a weaker macroeconomic environment and lower global demand for technology accessories. Comparable sales fell by 4.6%, with favourable foreign exchange increasing sales by 2.4%. 

This decline was more than offset by growth in the International segment, driven by back-to-school sales in Latin America. Operating loss was $52.8 million, compared to $35.6 million in 2022, primarily due to a non-cash goodwill impairment charge of $89.5 million. In 2023, restructuring charges increased to $20.9 million, primarily related to footprint rationalization and cost reduction programs. Adjusted operating income increased by 30.6% to $68.3 million, partially offset by higher SG&A expense. 

The company reported a net loss of $59.4 million, primarily due to a non-cash goodwill impairment charge and higher restructuring charges. Adjusted net income increased to $37.5 million, partially offset by higher interest and non-operating pension expenses.

Full Year Results

Net sales decreased by 5.9% to $1.83 billion in 2022, primarily due to a challenging macroeconomic environment, lower than anticipated return to office trends, and tight inventory management by customers in North America. Technology accessories sales were most negatively impacted, despite cumulative price increases and volume growth in Latin America. 

Operating income increased to $44.7 million from $34.8 million in 2022, primarily due to a lower non-cash goodwill impairment charge of $89.5 million. Restructuring charges increased to $27.2 million in 2023, primarily due to ongoing footprint rationalization and cost reduction programs. Adjusted operating income increased to $204.8 million from $175.8 million in 2022, partially offset by negative fixed cost leverage and higher SG&A expense. 

Net loss was $21.8 million, primarily due to operating income items. Adjusted net income increased to $105.6 million, with adjusted earnings per share at $1.09 per share, partially offset by higher interest and non-operating pension expenses.

Source: ACCO Brands
Source: Yahoo Finance