New distribution channels and investments to drive growth.

 

Ratings group S&P Global Ratings has downgraded the credit rating of ACCO Brands as a reflection of company’s “challenging operating environment in both its Americas and international segments”.

 

At the same time, S&P said the outlook for the company remains stable.

 

US-based ACCO Brands reported a 9.1 per cent decrease in net sales for the fiscal year 2024. 

 

S&P anticipates continued sales declines for ACCO in fiscal years 2025 and 2026. 

 

Despite growth in ACCO’s technology accessories business due to improved demand, new product introductions, and geographic expansion, the Business Essentials and Learning & Creative product categories continued to see decreasing demand. 

 

The company is expected to raise prices to protect profitability from higher US tariffs on imports from China, which could further dampen demand. 

 

ACCO is making efforts to enter new distribution channels, expand its product range, improve the pace of innovation and new product development, and actively pursue acquisitions. 

 

The company may need to make significant additional investments to create sustained organic sales growth, according to a report in Investing.com.

 

In January, ACCO Brands (Australia) announced the acquisition of NZ-based office furniture firm Buro Seating, which came into effect on 1 March.