Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q4 2024 Earnings Presentation
26 slides from Acco Brands's earnings presentation, Feb 21, 2025
Slide 1: ACCO Brands 4Q & Full Year 2024 Earnings Conference Call
ACCO Brands | 4Q & Full Year 2024 Earnings Conference Call | February 21, 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.
Slide 4: ACCO Brands (NYSE: ACCO) Snapshot
ACCO Brands (NYSE: ACCO) Snapshot DIVERSIFIED GLOBAL LEADING CONSUMER PRODUCTS COMPANY Collection of Iconic Brands 2024 Key Statistics Free Cash Flow and Capital Allocation • Consistent generator of Free Cash Flow $1.7B 11.4% Net Sales Adj. Operating • Consolidated leverage ratio of 3.4x at end of 2
Slide 5: 2024 Highlights
2024 Highlights • Full year sales and adjusted EPS in line with outlook, excluding the impact of more adverse FX o Greater than expected adverse FX lowered sales by $19 million and EPS by $0.03 for the year • Rate of sales decline improved throughout the year o Trends moderated in many categories o
Slide 6: 2025 Key Messages
2025 Key Messages • Expanding sales growth opportunities by accelerating targeted investments o Improving innovation and new product development o Entering new distribution channels o Expanding the breadth of our product offering o Investing in market leading brands o Actively pursuing accretive M&A
Slide 7: Multi-Year Cost Reduction Program
Multi-Year Cost Reduction Program Total Program Targeting At Least $100M in Cost Savings • $60 million of cost reductions announced in 2024 • $40 million of additional cost reductions announced in 2025 • $100 million of savings to be fully realized at end of 2026 • 2024 accomplishments o Reduced SG&
Slide 8: Full Year 2024 Results Summary
Full Year 2024 Results Summary 12 Months Ended Full Year 2024 Commentary $ in millions 2024 2023 % Chg • Comparable sales down 8%, reflecting weaker consumer Net Sales $1,666.2 $1,832.8 (9.1%) and business demand o Volume declines partially mitigated by price o Low margin business exits accounted fo
Slide 9: Full Year Segment Financial Metrics
Full Year Segment Financial Metrics Segment Commentary 2024 2023 Y/Y Change $ in millions • Rate of sales decline improved in both segments versus ACCO Brands Americas first half of the year Sales $999.9 $1,135.7 (12.0%) • Low margin business exits accounted for approximately 3% of declines in Ameri
Slide 10: Full Year 2024 Margin Reconciliation
Full Year 2024 Margin Reconciliation Change vs. Items of 2024 Prior Year Significant Impact Bps Gross Profit $555.4M ($42.9M) Pricing/Product Cost 0 Cost Savings 90 Gross Margin 33.3% +70 Bps Volume (50) Mix/FX 30 SG&A $365.7M ($27.8M) Cost Savings (90) Sales Deleverage 170 SG&A Margin 21.9% (40 bps
Slide 11: 4Q 2024 Results Summary
4Q 2024 Results Summary Three Months 4Q 2024 Commentary $ in millions 2024 2023 % Chg Net Sales $448.1 $488.6 (8.3%) • Comparable sales down 6%, similar to third quarter and improved from first half Gross Profit $155.5 $170.0 (8.5%) % Margin 34.7% 34.8% • Adverse foreign exchange impacted sales by a
Slide 12: Capital Structure
Capital Structure ($ in millions) Facility Balance1 Interest Rate Methodology Rate USD Revolver2 34 SOFR + CSA4 + 200 bps 6.47% EUR Revolver2 59 EURIBOR+ 200 bps 4.68% AUD Revolver2 33 Australian BBSR + 200 bps 6.44% EUR Term Loan A 128 EURIBOR + 200 bps 4.68% Subtotal Senior secured credit faciliti
Slide 13: Free Cash Flow
Free Cash Flow Change vs Free Cash Flow Commentary $ in millions* 2024 2023 2023 Net cash provided by operations 148 129 19 • Consistent generator of free cash flow Additions to PP&E (16) (14) (2) • Seasonally weighted toward second half of the year *Free cash flow 132 115 17 Dividends paid (28) (29
Slide 14: Full Year 2025 Outlook
Full Year 2025 Outlook Guidance FY2025 Reported Net Sales $1.55 to $1.62 billion Reported Net Sales (3.0%) to (7.0%) Comparable Sales* (1.0%) to (5.0%) Adjusted EPS $1.00 to $1.05 Free Cash Flow $105 to $115 million Adjusted Tax Rate Approximately 30% Consolidated Leverage Ratio Approximately 3.0x t
Slide 15: 1Q 2025 Outlook
1Q 2025 Outlook Guidance 1Q 2025 Reported Net Sales $315 to $325 million Reported Net Sales Growth (9.0%) to (12.0%) Comparable Sales* (5.0%) to (8.0%) Adjusted Loss Per Share ($0.03) to ($0.05) 1Q Sales Impacted By: • Adverse FX • Timing of gaming console launch • Greater economic uncertainty due t
Slide 16: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy Capital Allocation Debt Reduction Shareholder Returns More balanced capital allocation Declared $0.075 per share quarterly Net debt down $94M year-over-year approach as balance sheet improves dividend on February 14th Free cash flow of $132M versus free 4Q 20
Slide 17: Appendix
Appendix 1
Slide 18: Who is ACCO Brands?
Who is ACCO Brands? • Diversified Global Consumer Products Company • Iconic Leading Brands Generate Significant Annual Sales • Strong Customer Partnerships with Largest Retailers • Product And Geographically Diverse • Consistent Free Cash Flow Generator • 6% Annualized Dividend Yield* • Focused on D
Slide 19: Iconic Collection of Brands Drive Market Leading Positions
Iconic Collection of Brands Drive Market Leading Positions 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 Organization Spirax Student Party Controllers to-Schoo
Slide 20: Diversified Product Categories
Diversified Product Categories Product Group Product Categories % of 2024 Sales Key Brands Tech Gaming and 19% Accessories Computer Accessories Learning & Note-taking, Boards, Art Products and Writing 29% Creative Stapling, Laminating, Business Tools, Shredding, Filing and Organization, 52% Essentia
Slide 21: 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 22: Reg G Reconciliations
Reg G Reconciliations 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 G
Slide 23: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (Umaudited) (in millions, except per share data) ‘The following tables set forth a reconciliation of certain Consolidated Statements of Loss information reported in accordance with
Slide 24: Reg G Reconciliations
Reg G Reconciliations 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 Year ended December 31.
Slide 25: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries ‘Supplemental Business Segment Information and Reconciliation (Unaudited) (In millions) el, ACCO Brands Americas ‘S259. ‘$25.9 S108 $36.7 142% ‘S2844 S38 %2 $400 1% $253) 9% $33) ‘ACCO Brands interatons! res 9s 76 17 106% 103.6 94 16 170
Slide 26: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Supplemental Net Sales Change Analysis (Unaudited) We Change - Net Sales ‘S Change - Net Sales (in millions) GAAP ‘Non-GAAP ‘GAAP. ‘Non-GAAP Currency ‘Comparable Sales Currency [Net Sales Change| Translation ‘Change (A) \Net Sales Change