ACCO Brands drops sales of office and school products
ACCO Brands, a company that sells office and school products, among others, decreased its sales by 15.4% in 2020, to $ 1.655 billion.
Among other countries, the company markets its products in the United States, Europe, Brazil, Australia, Canada and Mexico.
In particular, in North America, the prevalence of remote learning negatively affected the sale of their products during the 2020 back-to-school season.
In addition, sales in ACCO Brands’ Brazilian and Mexican businesses were significantly and adversely affected by the closure of schools in those countries.
For the company, it remains uncertain when many schools in the United States and Canada will return to full-time face-to-face learning and when most schools will reopen in Brazil and Mexico.
Further delays in returning to in-person learning or the reopening of schools in these geographies or changes in the behavior of ACCO Brands customers and consumers could have a material adverse effect on its sales, margins, results of operations and financial condition.
ACCO Brands
The company recorded $ 10.9 million, $ 12.0 million and $ 11.7 million of restructuring charges for the years ended December 31, 2020, 2019 and 2018, respectively.
The restructuring charges in 2020 were primarily related to severance costs in North America.
Severance payments were also taken in Mexico, Brazil, EMEA and Australia.
Mexico
On July 2, 2018, ACCO Brands completed the acquisition of GOBA Internacional for a purchase price of $ 37.2 million, net of cash acquired and working capital adjustments.
GOBA is a leading provider of Barrilito brand school and craft products in Mexico.
The acquisition increased the breadth and depth of ACCO Brands’ distribution throughout Mexico, especially with wholesalers and retailers, and added a strong offering of school and craft products to its product portfolio in Mexico.
ACCO Brands designs, markets and manufactures recognized products for the consumer, school, technology and office.
Its brands include AT-A-GLANCE, Barrilito, Derwent, Esselte, Five Star, Foroni, GBC, Hilroy, Kensington, Leitz, Marbig, Mead, NOBO, PowerA, Quartet, Rapid, Rexel, Swingline, Tilibra, TruSens and Wilson Jones. .
The company made a net profit of $ 62 million in 2020, compared to $ 106 million in 2019.
