US-based firm expanding cost savings programme.

 

At the start of 2024, the company announced a multiyear restructuring and cost reduction programme aimed at achieving annualised savings of US$60 million when fully realised. 

 

Citing the continued macro uncertainties, ACCO has now increased its savings target to US$100 million by the end of 2026.

 

Actions related to these additional savings began at the end of last year, with ACCO taking restructuring charges of $10.7 million in Q4. Key components of the plan include:

“Our cost restructuring actions and continued focus on productivity will provide us with an optimised structure that will scale with organic and inorganic growth,” stated CEO Tom Tedford.

 

He added: “Our primary focus moving forward will be improving sales trends through new product development, accretive acquisitions, price and promotional excellence, brand-building and other growth initiatives. These will drive improved revenue outcomes and enhance our profitability and cash flows.”

 

Last November, Tedford said acquisitions could be on the cards, but things appear to have moved up a gear at the start of 2025. ACCO’s latest earnings presentation refers to “actively pursuing” M&A, entering new distribution channels and expanding the breadth of the product offering.

 

FY segment results: ACCO Brands International

Sales: US$666.3 million, a comparable decline of four per cent.

 

As with the Americas, weaker demand in OP categories was partially offset by growth in technology accessories.

 

Adjusted operating profit fell by just 0.3 pe cent to US$78.1 million, with margin increasing by 50 basis points to 11.7 per cent. This was due to price increases and good expense management.

 

Outlook:

Given the current uncertainties related to tariffs, foreign exchange exposure and economic headwinds affecting consumer demand, ACCO said it was providing a broader guidance range for 2025.

 

Comparable sales are forecast to be down 1-5 per cent for the year and by 5-8 per cent in the first quarter. This reflects the expectation that year-over-year trends will improve throughout 2025. In fact, the company said these had already stabilised in many of its categories.

 

For more on this another global stories from OPI, go to https://www.opi.net/news/region/001-north-america/acco-to-make-additiona...