Partial lockdown in Australia impacts international sales.

 

Global office products supplier ACCO Brands has forecast a fourth quarter sales decline of between 15 and 20 per cent due to the COVID-19 pandemic.

 

The Illinois-based company reported better-than-expected earnings and profit for the third quarter but has expressed a cautious view of future performance across its three operating divisions – North America, EMEA and International (which includes Australia).

 

Net global sales decreased 12.2 per cent to US$444.1 million from US$505.7 million in 2019. Comparable sales were US$443.6 million, down 12.3 percent. 

 

Both declines were due to lower demand because of COVID-19 impacts.

 

ACCO Brands International reported Q3 sales of US$69.2 million, down 30.9 per cent from US$100.2 million in 2019. 

 

Comparable sales were US$74.3 million, down 25.8 per cent. 

 

Both sales declines resulted from lower demand due to COVID-19 impacts, particularly in Brazil and Mexico where many schools and offices were closed, as well as from a partial lockdown in Australia. 

 

"I am very pleased with our third quarter results. Net sales were better than expected and profits were at the high end of our guidance. These results demonstrate the strength, breadth and balance of our global business and product portfolio despite the economic challenges and the pandemic,” Boris Elisman, chairman and CEO of ACCO Brands (pictured), said.

 

“We saw very solid improvement in EMEA, which helped to partially offset continuing softness in Latin America and an extended back-to-school sell-out in North America. Profitability and adjusted earnings per share continued to benefit from worldwide cost-saving actions. Once again, I extend my thanks to our global team for its hard work under very difficult circumstances," he said.

 

“We are confident in our strategy to transform our company into a more consumer-focused business," Elisman added.

 

ACCO Brands' share price rose more than 16 per cent following its latest trading update.