Acme United Reports 2% Increase in Net Sales for Fiscal Year 2024

Acme United Corporation reported a modest increase in net sales for the fiscal year ending December 31, 2024, reaching $194.5 million, up from $191.5 million in 2023. This represents a 2% growth, which, when excluding the impact of the divested hunting and fishing product lines, translates to a 6% increase year-over-year. The U.S. segment saw a 2% rise in sales, while European sales increased by 5%. However, Canadian sales experienced a decline of 5% in U.S. dollars, attributed to a soft economy affecting school and office product sales. The company's gross profit also improved, totaling $76.4 million, or 39.3% of net sales, compared to 37.7% in the previous year, primarily due to productivity enhancements in manufacturing and distribution.

In terms of operational developments, Acme United made significant strides in diversifying its product lines, with first aid and medical products now accounting for approximately 61% of total sales. The company also launched several new products, including the SmartCabinet 2.0, which features RFID technology for automated inventory management. Additionally, Acme United expanded its market presence by acquiring Elite First Aid, Inc. for approximately $7.1 million, enhancing its portfolio of tactical and emergency response products. The integration of this acquisition was completed in the fourth quarter of 2024.

The company’s financial position remains strong, with approximately $47 million available under its $65 million credit facility as of December 31, 2024. Acme United has significantly reduced its bank debt in recent years, allowing for greater liquidity to support future growth and acquisitions. The quarterly dividend was also increased from $0.02 per share in 2004 to $0.15 per share in 2024, reflecting a commitment to returning value to shareholders.

Despite these positive developments, Acme United faced challenges, including a material weakness in its internal controls over financial reporting, specifically related to information technology general controls. This weakness was identified as potentially allowing inappropriate access rights within its financial systems. The company has initiated remediation efforts to address these issues, which included enhancing user access controls and implementing new auditing software. The management believes that these measures will strengthen its internal controls moving forward.

Looking ahead, Acme United anticipates continued growth driven by its strategic initiatives, including product innovation and market expansion. However, the company remains cautious about external factors such as inflationary pressures, supply chain disruptions, and geopolitical tensions that could impact its operations and financial performance. The management's outlook emphasizes the importance of adapting to changing market conditions while maintaining a focus on operational efficiency and customer satisfaction.