Friday, February 23, 2024
ACCO Brands Corporation is one of the world’s largest designers, marketers and manufacturers of branded academic, consumer and business products. Our widely recognized brands include AT-A-GLANCE®, Esselte®, Five Star®, GBC®, Kensington®, Leitz®, Mead®, PowerA®, Quartet®, Rapid®, Rexel®, Swingline®, Tilibra®, and many others. Our products are sold in more than 100 countries around the world. More information about ACCO Brands, the Home of Great Brands Built by Great People, can be found at www.accobrands.com.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A Mixed Fiscal Year. A weaker macroenvironment globally, mixed with softer technology demand, lower than anticipated return to office trends and, in some quarters, a stronger U.S. dollar led to a decline in net sales from the prior year. However, increases in the Company’s gross and operating margin is attributable to management’s cumulative global price increases and cost reduction initiatives. With the recent announcement of a multi-year restructuring and cost savings program, we expect these increases to continue over the next year.
Results. Net sales for the fourth quarter were $488.6 million compared to $499.4 million last year and above our estimate of $475 million. Comparable sales decreased 4.6%. Net loss for ACCO was $59.4 million, or $0.62/sh, compared to net income of $18.8 million, or $0.20/sh, last year. An $89.5 million impairment charge and an increase in restructuring charges were the primary drivers of the 4Q23 loss. Adjusted net income was $37.5 million, or $0.39 per share, compared with $30.5 million, or $0.32, in 2022.
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