ACCO Brands has reported 2023 revenue and adjusted earnings that came in ahead of expectations.

 

The company achieved FY23 global sales of US$1.833 billion, just ahead of the guidance it had provided in November. 

 

Q4 revenue was around US$489 million, a comparable decrease of 4.6 per cent – including an 11.8 per cent drop in North America – against a backdrop of weak demand; although the declines represented a sequential improvement versus those reported in Q3.

 

ACCO recently announced a major restructuring and cost savings programme as it looks to make annualised savings of at least US$60 million. One aspect of this is a new reporting structure the company will use from the first quarter of this year. In the meantime, the Q4 and FY 2023 earnings follow the previous divisional structure.

 

In its 2024 outlook, ACCO cited the uncertain demand environment and expects reported sales to be between 5-7 per cent lower than in 2023. 

 

FY 2023

 

Sales decreased 5.9 per cent to $1.83 billion from $1.95 billion in 2022. Comparable sales fell by 6.5 per cent.

 

The decline was partly attributed to lower-than-anticipated return to office trends, as well as tight inventory management by customers in North America.

 

International results

International sales of US$398.4 million for the full year increased 7.9 per cent versus 2022. 

 

Comparable sales were up 5.3 per cent. Stronger pricing and volume growth in Latin America more than offset the impact of weaker economic conditions in Australia and Asia and overall lower demand for technology accessories.

 

Operating profit for the year was US$60.7 million, an increase from US$50.5 million in 2022. Adjusted operating profit of US$68.1 million increased from US$58.3 million in the prior year. The increases were primarily due to the cumulative benefit of pricing and cost actions, somewhat offset by higher go-to-market spending, people costs and incentive compensation.

 

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