Mixed performance and outlook across main categories.

 

ACCO Brands has reported signs of stabilisation in its traditional office products business, with global workspace solutions sales now declining in the low single digits and some categories even returning to growth.

 

Speaking during the company’s third quarter earnings call last week, CEO Tom Tedford said the improvement reflected efforts to protect market share, secure additional product listings and introduce new products.

 

“We have seen moderation from workspace solutions – and that wasn’t just by accident,” he told analysts.

 

Workspace solutions account for approximately 40 per cent of ACCO’s annualised pro forma revenue. It has been experiencing years of declining demand as traditional office supplies categories face structural market pressures.

 

Technology peripherals

 

The current performance of ACCO’s traditional categories contrasts with weakness in technology peripherals, which the company has identified as its main long-term growth opportunity.

 

Tedford revealed that global technology peripherals sales declined in the low double digits in Q3, with gaming and enterprise computer accessories experiencing similar rates of contraction.

 

The enterprise computer accessories business, meanwhile, has been affected by a sharp decline in laptop sales.

 

Tedford noted that global laptop sales were down approximately 20 per cent, creating significant challenges for ACCO because its accessories are frequently purchased alongside new laptop deployments.

 

Despite these headwinds, ACCO remains confident in the longer-term prospects for technology peripherals, supported by hybrid working, multi-monitor workstations, ergonomics and security requirements.

 

Although further acquisitions have not been ruled out, Tedford said the immediate priority was completing the integration of EPOS and Trust.

 

Trading conditions challenging in Australia

 

Trading conditions remained challenging in Australia, with reported sales in Australia and New Zealand declining by approximately four per cent during the quarter.

 

Looking ahead, Tedford said ACCO expects its Learning and Creative business, which represents approximately 30 per cent of annualised pro forma sales, to remain stable or achieve modest growth through innovation, market share gains and pricing actions.

 

“Our established categories are stabilising and generating meaningful cash flow, providing a strong foundation for the company,” noted the CEO.

 

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