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Mar 31, 2024
ACCO Brands Q1 2024 Earnings Report
ACCO Brands reported mixed results for Q1 2024, with net sales declining but free cash flow improving.
Key Takeaways
ACCO Brands reported a decrease in net sales by 10.9% to $359 million, alongside a net loss of $6.3 million, or $(0.07) per share. However, the company improved its net operating cash flow by $51 million and generated a free cash flow of $26 million. The adjusted EPS was $0.03, in line with the company's outlook. The company's consolidated net leverage ratio improved to 3.5x.
Net sales decreased by 10.9% to $359 million.
Gross margin expanded by 120 basis points.
Free cash flow generation improved to $26 million.
Adjusted EPS was $0.03, meeting company expectations.
Forward Guidance
The Company expects reported sales to be down in the range of 7.0% to 9.0% and adjusted EPS within a range of $0.30 to $0.33 for the second quarter.
Positive Outlook
- Company is focused on streamlining operations.
- Company is refining strategy to enhance business performance.
- Company is creating long-term shareholder value.
- Company is maintaining its 2024 free cash flow outlook of at least $120 million.
- Company expects a year-end consolidated leverage ratio of approximately 3.0x to 3.2x.
Challenges Ahead
- Demand environment for our categories is slower to recover than anticipated.
- Company has prudently tempered its full year 2024 outlook.
- Company expects reported sales to be down in the range of 5.0% to 7.0% for the full year.
- Reflects the lower reported sales for the first quarter
Historical Earnings Impact
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Avg. Return Before/After Earnings
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