Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q1 2025 Earnings Presentation
24 slides from Acco Brands's earnings presentation, May 2, 2025
Slide 1: ACCO Brands Q1 2025 Earnings Conference Call
ACCO BRANDS Q1 2025 EARNINGS CONFERENCE CALL EARNINGS CALL / MAY 2, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained herein, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financial condition, a
Slide 3: Reg. G Non-GAAP Financial Measures
Reg. G Non-GAAP Financial Measures An explanation of how we calculate each of our Non-GAAP financial measures and a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financial measures can be found at the end of this presentation. We
Slide 4: 1Q 2025 Highlights
1Q 2025 Highlights • Sales in line with outlook, adjusted loss per share better than outlook • Globally, demand impacted by weak consumer and business spending across most categories • Tariff policy adding complexity to demand environment • Growth in computer accessories supported by large B2B contr
Slide 5: Tariff Commentary
Tariff Commentary • Well positioned to manage tariff impacts o Gaming and certain computer and office related products most impacted o Over the last five years we've balanced production to optimize cost and minimize risk o Our China plus one approach enables quick moves to supply partners globally o
Slide 6: Multi-Year Cost Reduction Program
Multi-Year Cost Reduction Program Total Program Targeting At Least $100M in Cost Savings • Total savings of $32 million since inception of the program • Achieved $7 million in savings in Q1 2025, on track to deliver $40 million in pre-tariff savings in 2025 o Combination of lower headcount, lower di
Slide 7: 1Q 2025 Financial Results and Commentary
1Q 2025 3 Months Ended 1Q 2025 Commentary $ in millions 2025 2024 % Chg • Comparable sales down 8%, reflecting weaker consumer and business Net Sales $317.4 $358.9 (11.6%) demand o Adverse foreign exchange impacted sales by 3% o Computer accessories grew in the quarter Gross Profit $99.6 $110.4 (9.8
Slide 8: 1Q Segment Financial Metrics
1Q Segment Financial Metrics Segment Commentary 2025 2024 Y/Y Change $ in millions • Demand trends largely in line with expectations for most ACCO Brands Americas categories Sales $173.9 $197.2 (11.8%) • Technology accessories grew in International segment *Comparable Sales $180.9 $197.2 (8.3%) • Se
Slide 9: 1Q 2025 Margin Reconciliation
1Q 2025 Margin Reconciliation Change vs. Items of 2025 Prior Year Significant Impact Bps Gross Profit $99.6M ($10.8M) Pricing/Product Cost (60) Cost Savings 180 Gross Margin 31.4% +60 Bps Volume (110) Mix/FX 50 SG&A $92.7M ($1.5M) Cost Savings (80) Sales Deleverage 250 SG&A Margin 29.2% 300 bps Ince
Slide 10: Capital Structure
Capital Structure ($ in millions) Facility Balance1 Interest Rate Methodology Rate USD Revolver2 69 SOFR + CSA4 + 175 bps 6.09% EUR Revolver2 107 EURIBOR+ 175 bps 4.11% AUD Revolver2 46 Australian BBSR + 175 bps 5.93% EUR Term Loan A 131 EURIBOR + 175 bps 4.11% Subtotal Senior secured credit facilit
Slide 11: Historical Net Debt 1Q
Historical Net Debt 1Q $ millions Net Debt $1,200.0 $1,139.4 $1,071.9 $1,000.0 $972.2 $836.4 $801.9 $800.0 $600.0 $400.0 $200.0 $0.0 3/31/2021 3/31/2022 3/31/2023 3/31/2024 3/31/2025 Net Debt / 11
Slide 12: Free Cash Flow
Free Cash Flow Change vs Free Cash Flow Commentary $ in millions* 1Q 2025 1Q 2024 2024 Net cash provided by operations 5 28 (23) Additions to PP&E (2) (2) -- • Cash flow seasonally weighted toward second half of the year *Free cash flow 3 26 (23) Dividends paid (7) (7) -- • Free cash flow of $3M in
Slide 13: 2Q 2025 Outlook
2Q 2025 Outlook Guidance 2Q 2025 Reported Net Sales $386 to $403 million Reported Net Sales Growth (8.0%) to (12.0%) Comparable Sales* (8.0%) to (12.0%) Adjusted EPS $0.28 to $0.32 2Q Sales Impacted By: • Customer decisions in response to U.S. tariff situation • Shifts in back-to-school purchasing •
Slide 14: Capital Allocation
Capital Allocation Capital Allocation Debt Reduction Shareholder Returns Net debt down $35M year-over- Declared $0.075 per share quarterly Free cash flow of $3M year dividend on April 25th Closed on small, strategic 1Q 2025 consolidated leverage ratio Share repurchases of $15M in acquisition during
Slide 15: Appendix
acco BRANDS APPENDIX work. learn. play.
Slide 16: ACCO Brands (NYSE: ACCO) Snapshot
ACCO Brands (NYSE: ACCO) Snapshot Collection of Iconic Brands 2024 Key Statistics Free Cash Flow and Capital Allocation • Consistent generator of Free Cash Flow $1.7B 11.4% Adj. Operating Net Sales Margin* • Consolidated leverage ratio of 3.4x at end of 2024 • 12 brands account for 75% of net sales
Slide 17: Iconic Collection of Leading Brands
Iconic Collection of Leading Brands 12 BRANDS ACCOUNT FOR $1.3 BILLION IN ANNUAL SALES* AMERICAS INTERNATIONAL #1 #1 #1 #1 #1 #1 #1 #1 PowerA Third Five Star Back- Tilibra Student Barrilito Back- Leitz Leitz and Rapid Leitz Spirax Student Party to-School Brand Notetaking to-School Shredding Stapling
Slide 18: Diversified Product Categories
Diversified Product Categories % of 2024 Product Group Product Categories Key Brands Net Sales Tech Gaming and 19% Accessories Computer Accessories Learning & Note-taking, Boards, 29% Creative Art Products and Writing Stapling, Laminating, Business Tools, Shredding, Filing and Organization, 52% Esse
Slide 19: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Our non-GAAP financial measures include the following: Comparable Sales: Represents net sales excluding the impact of material acquisitions, if any, with current-period foreign operation sales translated at prior-year currency rates. We believe comparable sales are
Slide 20: Reconciliation of GAAP to Adjusted Non-GAAP Information
acco BRANDS ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited) (In millions, except per share data) The following tables set forth a reconciliation of certain Consolidated Statements of Loss information reported in accordance with GAAP to Adj
Slide 21: Reconciliation of Net Loss to Adjusted EBITDA and Free Cash Flow
acco BRANDS ACCO Brands Corporation and Subsidiaries Reconciliation of Net (Loss) Income to Adjusted EBITDA (Unaudited) (In millions) The following table sets forth a reconciliation of net loss reported in accordance with GAAP to Adjusted EBITDA. ‘Three months ended March 31, 2025 2024 % Change Net
Slide 22: This Is a New Presentation Title
THIS IS A NEW PRESENTATION TITLE / 22
Slide 23: Supplemental Business Segment Information and Reconciliation
acco BRANDS ACCO Brands Corporation and Subsidiaries supplemental Business Segment Information and Reconciliation (Unaudited) (In millions) 2025, 2024 ‘Changes Adjusted Adjusted Reported ‘Adjusted Operating Reported: Adjusted Operating: Adjusted — Adjusted Operating Operating Income Operating Operat
Slide 24: Thank You
THANK YOU Earnings Call / May 2, 2025