ACCO Brands Posts Solid Quarterly Results in Challenging Operating Environment

ACCO Brands Corporation has announced its second quarter results for the period ended June 30, 2022. The highlights are as follows:

  • Net sales were $521.0 million, up 0.6%; comparable sales were up 5.2%
  • EPS was $0.40 versus $0.50 in 2021; adjusted EPS was $0.37 versus $0.43 in 2021
  • Continued sales momentum in North America driven by strong back-to-school sell-in
  • Continued recovery in International segment, led by growth in Brazil and Mexico
  • Updated guidance reflecting a more conservative view of the macroeconomic environment

“We posted impressive comparable sales with growth across all operating segments and multiple product categories, led by our Five Star® and Kensington® brands, and in our Latin American business. We have achieved five consecutive quarters of sustained comparable sales growth and remain confident in our strategy of transforming our Company towards more consumer-oriented products. Our performance continues to demonstrate the benefits of our geographic diversity and balance and skillful execution by our employees. Our second quarter proved to be more challenging than originally anticipated mainly due to slower economic growth, increased inflation and unfavourable foreign currency impacts, but additional price increases to counter inflation leave us well-positioned for second half margin expansion, with rates greater than the prior year,” said Boris Elisman, chairman and chief executive officer of ACCO Brands.

North American Business Segment Results

Sales of $306.6 million increased 3.9% from $295.1 million in 2021 and comparable sales increased 4.4% to $308.0 million. The increases in both were primarily due to higher prices and volume increases in school products, computer accessories, and business products, partially offset by lower sales of gaming accessories.

Operating income was $50.7 million versus $53.8 million in 2021. Adjusted operating income of $57.2 million decreased from $59.9 million in 2021. The decreases in operating income and adjusted operating income were primarily due to lower gross margins as inflation more than offset the benefit of price increases and lower SG&A. The current period included $0.8 million of higher restructuring costs.

Full Year 2022 Outlook

ACCO provided an updated full year outlook to reflect a more conservative view for the remainder of the year, including a moderating demand environment, continuing cost inflation, and more adverse foreign exchange. However, ACCO anticipates second half gross margin improvement with rates higher than the prior year, as its pricing actions should begin to mitigate the impact of cumulative cost increases.

To view the full results, visit the ACCO website.

Source: ACCO  Brands

ACCO Brands Corporation Announces Appointment of Joe Burton to Board of Directors

ACCO Brands Corporation has announced that Joe Burton has been appointed to its Board of Directors.

In his current role as chief executive officer for Telesign Corp., Mr. Burton leads an organization that services global enterprises by connecting, protecting and defending their digital identities. Prior to his current role, he served as president, chief executive officer, and a member of the Board of Poly (formerly Plantronics), a company that provides premium audio, video and conferencing products for businesses and consumers. 

Boris Elisman, chairman and chief executive officer, ACCO Brands, commented, “We are excited to have Joe join our Board of Directors. Technology is becoming a more significant part of our product portfolio. Joe’s extensive expertise in technology and product development, as well as success driving digital transformation, growth acceleration and corporate/go-to-market strategies, will help guide us in our transformation journey to transition to a global consumer and brand-driven products company.”Source: ACCO  Brands