Acme United Corporation reported its financial results for the third quarter and nine months ended September 30, 2024, reflecting a mixed performance in revenue and profitability compared to the previous fiscal period.

For Q3 2024, net sales totaled $48.2 million, a decrease of 4% from $50.4 million in Q3 2023. The decline was attributed to the sale of the Camillus and Cuda product lines in November 2023; excluding this impact, sales increased by 4%. For the nine months ended September 30, 2024, net sales were $148.5 million, down 1% from $149.6 million in the same period of 2023, but again, excluding the sold product lines, sales increased by 5%. The U.S. market saw a 6% decrease in Q3 2024 sales, while Canadian sales decreased by 1% in U.S. dollars but increased by 2% in local currency. European sales, however, increased by 10% in both U.S. dollars and local currency.

Gross profit for Q3 2024 was $18.6 million, representing 38.5% of net sales, slightly down from 38.7% in Q3 2023. For the nine-month period, gross profit increased to $58.6 million, or 39.4% of net sales, compared to 37.3% in the prior year. Operating income for Q3 2024 was $2.9 million, down from $3.7 million in Q3 2023, while for the nine months, it rose to $11.9 million from $11.1 million.

Net income for Q3 2024 was $2.2 million, compared to $2.2 million in Q3 2023, and for the nine months, it increased to $8.3 million from $6.6 million. Basic earnings per share remained stable at $0.60 for Q3 2024, while diluted earnings per share decreased slightly to $0.54 from $0.58 in the prior year.

The company’s total assets increased to $165.5 million as of September 30, 2024, up from $149.2 million at the end of 2023. Total liabilities also rose to $59.2 million, primarily due to an increase in long-term debt, which rose to $22.0 million from $13.1 million. Stockholders’ equity increased to $106.3 million from $97.9 million.

Strategically, Acme United completed the acquisition of Elite First Aid, Inc. on May 23, 2024, for approximately $7.1 million, enhancing its product offerings in the first aid and medical sector. The company also reported a material weakness in its internal controls related to information technology, which it is actively working to remediate by the end of 2024.

Overall, while Acme United faced challenges in sales, particularly in the U.S. market, it demonstrated resilience in profitability and strategic growth through acquisitions.