ACCO Brands Posts Solid Quarterly Results in Challenging Operating Environment – Yahoo Finance

LAKE ZURICH, Ill., August 08, 2022–(BUSINESS WIRE)–ACCO Brands Corporation (NYSE: ACCO) today announced its second quarter results for the period ended June 30, 2022.

  • Net sales were $521.0 million, up 0.6 percent; comparable sales were up 5.2 percent

  • EPS was $0.40 versus $0.50 in 2021; adjusted EPS was $0.37 versus $0.43 in 2021

  • Continued sales momentum in North America driven by strong back-to-school sell-in

  • Continued recovery in International segment, led by growth in Brazil and Mexico

  • Updated guidance reflecting a more conservative view of the macroeconomic environment

“We posted impressive comparable sales with growth across all operating segments and multiple product categories, led by our Five Star® and Kensington® brands, and in our Latin American business. We have achieved five consecutive quarters of sustained comparable sales growth and remain confident in our strategy of transforming our Company towards more consumer-oriented products. Our performance continues to demonstrate the benefits of our geographic diversity and balance and skillful execution by our employees. Our second quarter proved to be more challenging than originally anticipated mainly due to slower economic growth, increased inflation and unfavorable foreign currency impacts, but additional price increases to counter inflation leave us well-positioned for second half margin expansion, with rates greater than the prior year,” said Boris Elisman, Chairman and Chief Executive Officer of ACCO Brands.

Second Quarter Results

Net sales increased 0.6 percent to $521.0 million from $517.8 million in 2021. Comparable sales increased 5.2 percent. Both reported and comparable sales were driven by higher prices, as strong volume of school products, computer accessories, and business products was offset by lower sales of gaming accessories. Adverse foreign exchange reduced sales $23.6 million, or 4.6 percent.

Operating income increased to $55.4 million versus $49.9 million in 2021 due to a favorable change related to the contingent earnout partially offset by higher restructuring expense of $1.9 million. Operating income this year included contingent earnout income of $9.4 million compared with contingent earnout expense of $4.9 million in the prior year. Adjusted operating income decreased to $58.1 million compared with $67.2 million in the prior year, due to higher inflation that was not fully mitigated with price increases, lower volume and adverse foreign exchange of $1.0 million, partially offset by lower incentive compensation expense.

The Company reported net income of $39.4 million, or $0.40 per share, compared with net income of $48.6 million, or $0.50 per share, last year. Net income declined in 2022 from lower discrete tax benefits as well as reduced Brazil operating tax credits. This decline was partially offset by improved operating income as noted above. Adjusted net income was $36.0 million compared with $42.0 million in 2021, aligned with the adjusted operating income decline. Adjusted earnings per share were $0.37 compared with $0.43 in 2021.

Business Segment Results

ACCO Brands North America – Sales of $306.6 million increased 3.9 percent from $295.1 million in 2021 and comparable sales increased 4.4 percent to $308.0 million. The increases in both were primarily due to higher prices and volume increases in school products, computer accessories, and business products, partially offset by lower sales of gaming accessories.

Operating income was $50.7 million versus $53.8 million in 2021. Adjusted operating income of $57.2 million decreased from $59.9 million in 2021. The decreases in operating income and adjusted operating income were primarily due to lower gross margins as inflation more than offset the benefit of price increases and …….

Source: https://finance.yahoo.com/news/acco-brands-posts-solid-quarterly-201500083.html

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