ACCO Brands Corporation has recently released its 10-K report, detailing its business operations and financial performance for the year ended December 31, 2024. The company designs, manufactures, and markets consumer, school, technology, and office products under various brand names, including AT-A-GLANCE, Five Star, GBC, Kensington, Mead, Quartet, and Swingline. ACCO Brands operates through two segments: the Americas and International, with its products primarily sold in the U.S., Europe, Australia, Canada, Brazil, and Mexico.
In the 10-K report, ACCO Brands highlighted that during 2024, the company was impacted by soft global demand, resulting from weak consumer and business spending due to a weak macroeconomic environment and geopolitical uncertainties. The company reported a net sales decrease of $166.6 million, or 9.1 percent, compared to the prior year, primarily driven by softer global demand for certain office-related products and lower back-to-school purchases in the Americas segment. Gross margin increased by 70 basis points, primarily due to cost reduction actions, partly offset by volume declines.
ACCO Brands reported an operating loss of $37.0 million in 2024, compared to operating income of $44.7 million in 2023. The company attributed the decrease to higher non-cash goodwill and intangible asset impairment charges, partly offset by lower restructuring charges. The reported net loss for 2024 was $101.6 million, or $(1.06) per share, compared to a net loss of $21.8 million, or $(0.23) per share, in the prior year.
The company's liquidity and capital resources were supported by operating cash flows of $148.2 million in 2024, compared to $128.7 million in 2023. ACCO Brands primarily relies on cash flows from operating activities and seasonal borrowings under its multi-currency revolving credit facility to support working capital requirements and fund capital expenditures.
In terms of segment performance, net sales for the Americas segment decreased by $135.8 million, or 12.0 percent, with an operating loss of $45.5 million in 2024. The International segment reported a net sales decrease of $30.8 million, or 4.4 percent, with an operating income increase of $4.5 million, or 9.1 percent, in the same period.
As a result of these announcements, the company's shares have moved -17.4% on the market, and are now trading at a price of $4.56. If you want to know more, read the company's complete 10-K report here.
