“We’re advancing our strategy as we continue to improve our innovation and new product development processes, expand into new points of distribution and extend our product offering into adjacent categories. In addition, given our improved balance sheet and strong cash flow, we are able to consider potential acquisitions. These initiatives, combined with our $60 million multi-year cost reduction program, are strengthening our competitive position,” concluded Tom Tedford, ACCO Brands’ President & CEO.

  • Reported net sales of $421 million at the mid-point of outlook
  • Earnings per share of $0.09; adjusted EPS of $0.23
  • On track to achieve over $20 million in cost savings for the full year 2024 through a multi-year cost savings program
  • Net operating cash flow improved by $25 million
  • Reduced consolidated leverage ratio to 3.5x at quarter-end
  • Maintaining 2024 outlook for sales, adjusted EPS and cash flow
  • Refinanced the credit facilities, extending the maturity date to 2029

The company’s third quarter results showed a 6.0% decrease in net sales from $448.0 million in 2023, with adverse foreign exchange reducing sales by $4.4 million. Comparable sales decreased by 5.0%, largely due to softer back-to-school purchases by customers in Latin America and North America. Global demand was weaker for certain office-related products, with the exit of lower margin business in North America accounting for about 2.0% of the decline.

In the business segment, ACCO Brands Americas reported net sales of $259.1 million, which decreased 8.9% from $284.4 million in the prior year. Adverse foreign exchange, primarily in Brazil and Mexico, reduced sales by 2.3%. Comparable sales were $265.5 million, down 6.6% versus the prior year. The exit of lower margin business accounted for 3.0% of the decline.

ACCO Brands International reported net sales of $161.8 million, down 1.1% from $163.6 million in the prior year. Favorable foreign exchange increased sales by 1.2%, while comparable sales were $159.8 million, down 2.3 percent versus the prior year.

In the nine-month results, net sales were $1,218.1 million, down 9.4% from $1,344.2 million in 2023. Adverse foreign exchange reduced sales by $6.4 million, and comparable sales decreased 8.8%. Operating loss was $79.0 million, primarily due to non-cash impairment charges related to goodwill and intangible assets within the Americas segment.

Source: Busienss Wire
Source: Yahoo Finance
Source: ACCO