ACCO Brands Announces Q4 and Full-Year Financial Results, Shares 2025
ACCO Brands Corporation has released its financial results for the fourth quarter and full year ending December 31, 2024. Despite challenging market conditions, the company executed key strategic priorities, resulting in approximately $25 million in cost savings and a broader cost reduction program totaling $100 million in cumulative savings. These initiatives, along with disciplined cost management, contributed to improved gross margins, lower SG&A expenses, and strong free cash flow. Additionally, ACCO Brands expanded its capital allocation strategy, repurchasing $15 million in shares and reducing debt to strengthen its balance sheet.
Strategic and Financial Highlights
President and Chief Executive Officer Tom Tedford emphasized that the company’s cost restructuring and productivity initiatives have positioned it for sustainable growth. Moving forward, ACCO Brands will focus on enhancing sales performance through product innovation, strategic acquisitions, pricing strategies, brand development, and other initiatives aimed at revenue growth and increased profitability. The company remains committed to creating long-term value for shareholders while navigating macroeconomic challenges.
Fourth Quarter Performance
ACCO Brands reported net sales of $448.1 million, an 8.3% decline compared to $488.6 million in 2023. The decline was influenced by adverse foreign exchange impacts of $11.9 million (2.4%) and a 5.9% decrease in comparable sales. Factors contributing to the decline included softer global demand for office-related products and reduced back-to-school sales in Brazil. However, these were partially offset by growth in technology accessories, a category that continues to show resilience and long-term growth potential.
Operating income for the quarter was $42.0 million, a significant turnaround from an operating loss of $52.8 million in 2023, which was largely attributed to a non-cash goodwill impairment charge of $89.5 million. Adjusted operating income was $64.2 million, down from $68.3 million in the prior year, reflecting lower sales volume despite cost reduction initiatives.
Net income for Q4 2024 was $20.6 million ($0.21 per share), compared to a net loss of $59.4 million ($-0.62 per share) in 2023. The improvement was driven by the absence of the prior year’s goodwill impairment charge. Adjusted net income remained steady at $37.5 million, or $0.39 per share, in both 2024 and 2023.
Full-Year Financial Results
For the full year, net sales were $1.67 billion, marking a 9.1% decline from $1.83 billion in 2023. Foreign exchange fluctuations negatively impacted sales by $19.3 million (1.1%), while comparable sales decreased by 8.0%. Reduced consumer and business demand for office-related products, along with weaker back-to-school sales in the Americas, contributed to the decline. However, growth in technology accessories partially offset these losses, demonstrating the company’s ability to adapt to changing market trends.
Operating loss for 2024 was $37.0 million, compared to an operating income of $44.7 million in 2023. The decline was primarily due to non-cash impairment charges of $165.2 million related to goodwill and intangible assets. Adjusted operating income stood at $189.7 million, a decrease from $204.8 million in 2023. Lower sales volume was a key factor, though cost-saving initiatives, reduced incentive compensation expenses, and an improved product mix helped mitigate the impact.
The company reported a net loss of $101.6 million ($-1.06 per share) for the year, compared to a net loss of $21.8 million ($-0.23 per share) in 2023. The higher loss was driven by increased non-cash impairment charges. Adjusted net income for 2024 was $99.2 million, compared to $105.6 million in 2023, with adjusted earnings per share at $1.02 versus $1.09 per share in the prior year.
Capital Allocation and Dividend Policy
ACCO Brands improved its operating cash flow to $148.2 million in 2024, up from $128.7 million in 2023, due to enhanced working capital management. Free cash flow increased to $132.3 million from $114.9 million in the previous year. The company also reduced net debt by $94 million, paid $28.4 million in dividends, and repurchased 2.9 million shares for $15.0 million. These financial strategies underscore the company’s commitment to maintaining a healthy balance sheet and returning value to shareholders.
On February 14, 2025, the Board of Directors declared a quarterly cash dividend of $0.075 per share, payable on March 26, 2025, to stockholders of record on March 14, 2025. This equates to an annualized yield of approximately 6% at the current stock price, making ACCO Brands an attractive investment for income-focused shareholders.
Restructuring and Cost Savings Initiatives
In January 2024, ACCO Brands launched a multi-year cost savings program targeting at least $60 million in annualized pre-tax savings. Given ongoing macroeconomic uncertainties, the company has increased the target to $100 million in annualized savings by the end of 2026. During Q4 2024, restructuring charges of $10.7 million were recorded to support these efforts. The company is focusing on optimizing its supply chain, reducing overhead costs, and improving operational efficiencies to drive long-term profitability.
Business Segment Performance
Americas Segment
Fourth-quarter net sales for ACCO Brands Americas were $251.3 million, reflecting an 11.8% decline from $284.9 million in 2023. Adverse foreign exchange in Brazil and Mexico contributed to a 3.9% reduction, while comparable sales were down 7.9%. Weaker back-to-school demand in Brazil and lower sales of consumer and business products contributed to the decline, although technology accessories experienced modest growth.
Operating income for the segment was $31.2 million, a significant improvement from an operating loss of $62.6 million in Q4 2023, primarily due to the goodwill impairment charge from the prior year. Adjusted operating income fell to $41.6 million from $49.6 million, impacted by lower sales volume despite cost reductions.
International Segment
The International segment reported Q4 net sales of $196.8 million, a 3.4% decline from $203.7 million in 2023. Foreign exchange fluctuations had a minor negative impact of 0.3%. Comparable sales declined by 3.1%, driven by weaker demand for office products, though technology accessories and price increases helped mitigate the drop.
Operating income for this segment was $24.0 million, slightly up from $23.4 million in the prior year. Adjusted operating income rose to $32.4 million from $31.7 million, benefiting from pricing strategies and cost efficiencies despite lower sales volume.
2025 Outlook and Strategic Focus
ACCO Brands remains committed to driving growth through innovation, acquisitions, pricing optimization, and brand-building initiatives. The company will also continue implementing cost-saving measures and operational efficiencies to improve profitability and cash flow. The enhanced cost restructuring program is expected to yield long-term benefits, positioning ACCO Brands for sustained success despite ongoing market uncertainties.
ACCO Brands aims to strengthen its leadership in key product categories, expand its presence in high-growth markets, and enhance its digital and e-commerce strategies. With a solid foundation of disciplined cost management, targeted investments, and a focus on long-term strategic growth, ACCO Brands is well-positioned to deliver improved financial performance in 2025 and beyond.
