ACME United Reports 2% Increase in Q1 2025 Net Sales to $45.96 Million

ACME United Corporation reported a modest increase in financial performance for the first quarter of 2025, with net sales reaching $45.96 million, up 2% from $44.96 million in the same period of 2024. The growth was primarily driven by a 3% increase in U.S. sales, attributed to higher demand for first aid and medical products, although this was partially offset by a decline in school and office product sales. In Canada, net sales increased by 5% in U.S. dollars and 12% in local currency, while European sales saw a decrease of 7% in U.S. dollars, largely due to a lack of repeat promotions from the previous year.

The company's gross profit for the quarter was $17.92 million, representing 39% of net sales, compared to $17.40 million or 38.7% of net sales in the prior year. Selling, general, and administrative expenses rose to $15.49 million, up from $14.84 million, reflecting increased personnel-related costs. Operating income decreased slightly to $2.43 million from $2.56 million year-over-year, with the U.S. and Canadian segments showing slight increases in operating income, while the European segment experienced a decline.

In terms of operational metrics, ACME United's working capital increased by approximately $4.2 million, with inventory turnover remaining stable at 2.1. The company reported a current ratio of 4.83 and a long-term debt to equity ratio of 27.9, indicating a solid liquidity position. As of March 31, 2025, the company had 3,790,689 shares of common stock outstanding, with a total stockholders' equity of $108.28 million, up from $106.98 million at the end of 2024.

Strategically, ACME United completed the acquisition of Elite First Aid, Inc. for approximately $7.1 million in May 2024, which is expected to enhance its product offerings in the tactical and emergency medical markets. The company continues to navigate challenges related to tariffs on goods sourced from China, which have impacted costs and demand. Looking ahead, ACME United anticipates that cash generated from operations, along with available funds from its revolving credit facility, will be sufficient to support its operations over the next twelve months, despite ongoing economic uncertainties and potential supply chain disruptions.