Acme United Corporation reported a 1% decrease in net sales for the year ended December 31, 2023, compared to the same period in 2022. The company’s sales for the three months ended December 31, 2023 were $41.9 million, a 5% decrease from the same period in 2022. Sales for the fourth quarter of 2023 declined 1% compared to the 2022 period, except for the sale of the Camillus and Cuda product lines on November 1, 2023.

The company recognized an after-tax gain of approximately $9.6 million during the fourth quarter of 2023, with revenues from the divested product lines being around $12.0 million. Net income for the year ended December 31, 2023 was $8.2 million, or $2.23 per diluted share, compared to $3.0 million, or $0.82 per diluted share, in 2022. Net income for the year ended December 31, 2023, including the sale of the Camillus and Cuda product lines, was $17.8 million, or $4.86 per diluted share.

Chairman and CEO Walter C. Johnsen noted that the company had an outstanding year of strong earnings and achievements in 2023, with the sale of Cuda and Camillus enabling focus on core businesses and reducing debt by $13 million. The company also completed its inventory reduction program, implemented cost reduction and productivity initiatives, generated approximately $6.5 million in savings, strengthened its balance sheet, raised gross margin significantly, and reached a record $24 million in free cash flow. Mr. Johnsen expressed optimism for a strong 2024 year, citing growth from new first aid customers, additional placement of cutting tools in craft and mass markets, and new DMT sharpener business. 

In Canada, net sales increased 11% in U.S. dollars and 12% in local currency, mainly due to higher sales of first aid products. Gross margin increased to 39.1% in the three months ended December 31, 2023, and 37.7% for the year ended December 31, 2023, primarily due to productivity improvements in manufacturing and distribution facilities and lower in-bound freight costs.

Source: Yahoo Finance
Source: Markets Insider
Source: Acme United Corporation