Productivity improvements boost Acme’s Q1 earnings

Acme United has reported a 65% jump in Q1 net profit despite a slight decline in sales.

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Acme United has reported a 65% jump in Q1 net profit despite a slight decline in sales.

The stationery, office products and first aid vendor achieved net profit for the first quarter of 2024 of $1.6 million compared with $1 million last year. The increase came despite a 2% drop in revenue to $45 million, although this includes the impact of the Camillus and Cuda hunting and fishing brands that were sold last year. Excluding this divestment, Q1 2024 sales were up 1%.

Again, excluding Camillus and Cuda, first quarter revenue changes (in local currencies) at Acme’s three reporting units were as follows: US +1%, Canada +1%, Europe +7%.

The company’s gross margin in the quarter improved by 320 basis points year on year to 38.7%. This was mainly due to the continuing impact of productivity improvements implemented in late 2022.

CEO Walter Johnsen commented: “Acme United had very strong earnings in the first quarter due to productivity improvements in manufacturing and distribution. We also experienced reduced inbound shipping costs and lowered our selling and general expenses.”

He added: “Although the sale of our Cuda and Camillus lines in November reduced revenues, we are generating new revenues under initiatives in our principal business lines. These include additional distribution of first aid kits and components in the hardware and drug store markets, new craft and cutting tool planograms in the mass market, additional sales of spill clean-up products to large mass market retailers, and new sharpening tools for the kitchen.”

Shelton (CT), USA