ACCO Brands Corporation · Q4 2023 earnings

Briefing

ACCO Brands' Q4 2023 financial performance exceeded expectations, with net sales and adjusted EPS surpassing forecasts, driven by successful execution of restructuring plans and strong free cash flow generation.

ACCO Brands reported a net sales decline of 2.2% to $488.6 million in Q4 2023. The company's operating loss was $52.8 million, impacted by a goodwill impairment charge. However, adjusted operating income increased by 30.6% to $68.3 million. The company reported a net loss of $59.4 million, or $(0.62) per share, while adjusted net income was $37.5 million, or $0.39 per share.

• Net sales declined 2.2 percent to $488.6 million.
• Operating loss was $52.8 million versus operating income of $35.6 million in 2022, primarily due to a non-cash goodwill impairment charge of $89.5 million related to the North America segment.
• Adjusted operating income increased 30.6 percent to $68.3 million from $52.3 million in the prior-year period.
• The Company reported a net loss of $59.4 million, or $(0.62) per share, compared with prior-year net income of $18.8 million, or $0.20 per share.

Headline financials

Revenue & EPS history

For the full year, we expect reported sales to be down in the range of 2.0% to 5.0%. Full year adjusted EPS is expected to be within a range of $1.07 to $1.11. The Company expects 2024 free cash flow to grow to at least $120 million and to end the year with a consolidated leverage ratio of approximately 3.0x to 3.2x. In the first quarter, we expect reported sales to be down in the range of 6.5% to 8.0% and adjusted EPS within a range of $0.01 to $0.04.