ACCO Brands Posts Strong First Quarter

ACCO Brands Corporation has announced its first quarter results for the period ended March 31, 2022. Highlights are as follows:

  • Net sales were $441.6 million, up 7.6%; comparable sales were up 11.2% with all segments posting increases
  • EPS was $(0.03) versus $(0.21) in 2021; adjusted EPS was $0.11, up 10.0%
  • Strong recovery in International segment, especially in Brazil and Mexico
  • Continued sales momentum in North America and EMEA

“We had an excellent first quarter, with sales and profits above our expectations. Our performance is a result of the strategic transformation of our Company towards sustainable comparable sales growth and demonstrates the benefits of our geographic diversity and balance, the strength of our brands, and skillful execution by our employees. All segments delivered meaningful comparable sales growth. These results give us strong momentum going into our very important back-to-school season and reinforce our outlook for a record year,” said Boris Elisman, chairman and chief executive officer of ACCO Brands.

First Quarter Results

Net sales increased 7.6% to $441.6 million from $410.5 million in 2021. Comparable sales increased 11.2%. Both reported and comparable sales were driven by higher sales prices and increased volume, primarily from strong demand for school products, computer accessories, and business products. Adverse foreign exchange reduced net sales $14.9 million, or 3.6%.

Operating income was $6.8 million versus an operating loss of $1.1 million in 2021. The increase was a result of $6.5 million of lower charges for the contingent consideration and inventory step-up related to the PowerA acquisition, as well as $3.6 million of lower restructuring costs. Adjusted operating income was $22.6 million compared with $24.6 million in the prior year as inflation was not sufficiently offset with price increases, especially in EMEA. Foreign exchange reduced operating income $1.2 million.

The Company reported a net loss of $2.7 million, or $(0.03) per share, compared with a net loss of $20.4 million, or $(0.21) per share, last year. The improvement was due to higher operating income, $3.5 million of lower interest expense, and non-recurrence of $12.0 million of other expense related to the debt refinancing in 2021. Adjusted net income was $10.4 million compared with $10.0 million in 2021. Adjusted earnings per share were $0.11 compared with $0.10 in 2021.

Business Segment Results – North America

Sales and comparable sales of $208.5 million increased 10.4% from $188.8 million in 2021, primarily due to higher prices and volume increases in school products, computer accessories, and business products.

Operating income was $13.9 million versus an operating loss of $0.7 million in 2021. Adjusted operating income of $19.8 million increased from $11.2 million in 2021. Both increases primarily were due to higher sales.

Capital Allocation and Dividend

For the quarter, the Company had $104.2 million of net cash outflow from operating activities and used $107.6 million of free cash flow, including capital expenditures of $3.4 million. The Company paid $7.3 million in dividends.

On April 25, 2022, ACCO Brands’ board of directors declared a regular quarterly cash dividend of $0.075 per share. The dividend will be paid on June 22, 2022, to stockholders of record as of the close of business on May 27, 2022.

Full Year 2022 Outlook

“Our momentum from 2021 carried through the first quarter. We expect a strong back-to-school sell-in in the second quarter and continued good execution as we deal with ongoing inflation and supply chain issues. We expect to have another year of record sales, record adjusted earnings per share, and significant free cash flow growth,” concluded Elisman.

The Company is adjusting its full year outlook to reflect first quarter results, improved business expectations, and a more negative foreign exchange impact.

To view the full release, visit the ACCO Brands website. 

Source: ACCO Brands 

ACCO Brands’ Graciela Monteagudo Recognized as NACD Directorship 100™ Honouree

The National Association of Corporate Directors (NACD) announced the 2022 NACD Directorship 100™—the most influential peer-nominated leaders in the boardroom and corporate governance community. Included among this year’s esteemed honourees is Graciela Monteagudo of ACCO Brands.

“We applaud Graciela for this deserved recognition,” said Boris Elisman, chairman and chief executive officer, ACCO Brands. “It is a testament to Graciela’s expertise that other directors put forward her nomination. As the Chair of the Nominating, Governance and Sustainability Committee, she leads our Board’s deliberations on governance and ESG topics, and champions improvements in policies and disclosure. We are very proud that Graciela is a 2022 NACD honouree.”

Now in its 16th year, the NACD Directorship 100 awards recognize peer-nominated leading directors and governance professionals. Honourees are evaluated in four key categories: integrity, mature confidence, informed judgment and high-performance standards. A selection committee reviewed the nominees’ histories of advancing board performance and leading corporate governance practices in accordance with established NACD principles. The principles are a framework that encourages excellence in areas that include risk oversight, corporate strategy, compensation and transparency.

The complete list of the 2022 NACD Directorship 100 is available at https://directorship100.nacdonline.org/honorees/2022.

Source: ACCO Brands