ACCO Brands Reports 9.1% Decline in Net Sales for Fiscal Year 2024

ACCO Brands Corporation reported a challenging fiscal year for 2024, with net sales declining by $166.6 million, or 9.1%, to $1.666 billion compared to $1.833 billion in 2023. The decrease was attributed to weaker global demand, particularly in office-related products, and lower back-to-school purchases in the Americas segment. The company also exited lower-margin business lines, which contributed to the sales decline. Despite these challenges, gross margin improved by 70 basis points to 33.3%, primarily due to cost reduction initiatives, although this was partially offset by volume declines.

The company experienced a significant operating loss of $37 million in 2024, a stark contrast to the operating income of $44.7 million reported in the previous year. This shift was largely driven by increased non-cash impairment charges related to goodwill and intangible assets, which totaled $165.2 million for the year, compared to $89.5 million in 2023. The net loss for the year was $101.6 million, or $(1.06) per share, compared to a net loss of $21.8 million, or $(0.23) per share, in 2023. Operating cash flows remained positive at $148.2 million, up from $128.7 million in the prior year, reflecting the company's ability to generate cash despite the overall losses.

In terms of strategic developments, ACCO Brands reorganized its operations into two segments—Americas and International—effective January 1, 2024. This restructuring aims to simplify the company's operating structure and reduce costs through headcount reductions and supply chain optimization. The Americas segment, which includes the U.S., Canada, Brazil, Mexico, and Chile, reported net sales of $999.9 million, down 12% from the previous year. Conversely, the International segment saw a smaller decline of 4.4%, with net sales of $666.3 million.

The company also focused on cost-saving measures, announcing a multi-year restructuring program expected to yield annualized pre-tax savings of approximately $100 million by the end of 2026. In 2024, ACCO Brands recorded $16.8 million in restructuring charges, down from $27.2 million in 2023. The total employee headcount at the end of 2024 was approximately 5,000, with a significant portion of the workforce in the Americas segment. The company continues to face challenges from economic conditions, including inflation and fluctuating consumer demand, which may impact future performance.

Looking ahead, ACCO Brands anticipates ongoing pressure from macroeconomic factors and geopolitical uncertainties that could affect consumer and business spending. The company remains committed to its strategic priorities, including innovation in product development and expanding its geographic reach, while managing its cost structure to support profitability. The outlook for 2025 will depend on the effectiveness of these strategies in navigating the current market environment.