As of September 30, 2024, ACCO Brands Corporation reported a significant decline in financial performance compared to the same period in 2023. The company recorded net sales of $420.9 million for the third quarter, a decrease of $27.1 million (6.0%) from $448.0 million in Q3 2023. For the nine months ended September 30, 2024, net sales totaled $1,218.1 million, down $126.1 million (9.4%) from $1,344.2 million in the prior year. The decline was attributed to lower back-to-school purchases in North America and Latin America, alongside weaker global demand for office-related products, although growth was noted in technology accessories.
Gross profit for Q3 2024 was $136.9 million, down from $144.8 million in Q3 2023, while gross profit for the nine-month period decreased to $399.9 million from $428.3 million. Operating income for Q3 2024 was $26.3 million, a decline of $5.9 million (18.3%) from the previous year, primarily due to lower sales volume and increased restructuring expenses. The nine-month operating loss was $(79.0) million, a stark contrast to the operating income of $97.5 million reported in the same period in 2023, largely due to non-cash impairment charges totaling $165.2 million related to goodwill and indefinite-lived trade names.
Net income for Q3 2024 was $9.3 million, down from $14.9 million in Q3 2023, while the nine-month net loss reached $(122.2) million, compared to a net income of $37.6 million in the prior year. The diluted earnings per share for Q3 2024 was $0.09, a decrease of 40.0% from $0.15 in Q3 2023, and for the nine months, it was $(1.27), down from $0.39.
On the balance sheet, total assets decreased to $2,357.5 million from $2,644.8 million at the end of 2023. Total liabilities also fell to $1,742.0 million from $1,857.8 million, while total stockholders' equity decreased to $615.5 million from $787.0 million. Cash and cash equivalents increased to $102.0 million, up from $66.4 million at the end of 2023.
Strategically, ACCO Brands restructured its operating segments into two: Americas and International, effective January 1, 2024. The company also recorded a goodwill impairment charge of $127.5 million in Q2 2024, reflecting a decline in forecasted cash flows. Additionally, the company has undertaken cost reduction initiatives, resulting in a decrease in Selling, General and Administrative Expenses (SG&A) by 6.7% for Q3 2024 and 6.0% for the nine-month period.
About ACCO BRANDS Corp
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