ACCO Brands Corporation reported strong financial results for its second quarter and first six-months ended June 30, 2024. The company’s strategic cost management and infrastructure improvements led to improved cash flow and a lower leverage ratio. The company has made significant progress with its $60 million cost reduction program and is on track to save over $20 million this year.
ACCO Brands expects a moderated decline in sales across many categories, despite demand headwinds in certain markets. The second quarter was also impacted by the exit of lower margin business in back-to-school categories, which will lessen throughout 2024. The company is reviewing its cost structure for additional cost reduction opportunities due to softer sales.
The company’s commitment to debt reduction has improved its financial position, allowing greater flexibility in capital allocation priorities. ACCO Brands is actively investing in new product development and refining its strategy to enhance business performance.
For the full year the Company now expects reported sales to be down in the range of 8.0% to 9.0%. Full year adjusted EPS is expected to be within a range of $1.04 to $1.09. The Company expects 2024 free cash flow of approximately $130 million with a year-end consolidated leverage ratio of approximately 3.0x to 3.2x.
Source: Yahoo Finance
Source: ACCO Brands
