Founder, BWS Financial Inc

Hamed Khorsand

Founder

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BWS Financial Inc

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Equity Bottom-Up

<ul>
<li>ACCO experienced a recovery in all its segments in the first quarter 2022, especially from COVID-19 related closures in Mexico and Brazil</li>
<li>ACCO reported comparable sales rose 11 percent compared to the prior year, but foreign exchange limited the quarter’s performance</li>
<li>ACCO is continuing to project a higher free cash flow than in 2021, which would be used to reduce its debt level.</li>
</ul>


ACCO experienced a recovery in all its segments in the first quarter 2022, especially from COVID-19 related closures in Mexico and Brazil
ACCO reported comparable sales rose 11 percent compared to the prior year, but foreign exchange limited the quarter’s performance
ACCO is continuing to project a higher free cash flow than in 2021, which would be used to reduce its debt level.


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Acco Brands (ACCO) reported third quarter results benefiting from stronger back to school sell through and offices reopening leading to commercial product sales. The return to in-person learning/working helped drive sales in the quarter, but with some softness as a result of supply chain constraints in being able to get product to market.</li></ul> <ul type="disc"><li>ACCO reported sales of $526.7 million and net income of $20.2 million, or $0.21 per share. We had been forecasting sales closer to $540 million on the expectation the return of in-person learning would drive retailers to replenish their inventory levels. While the sell through did occur, retailers were more conservative to carry inventory due to the increase of COVID-19 cases late in the shopping season.</li></ul> <ul type="disc"><li>In the third quarter, Australia and Mexico were mostly under lockdowns or restrictions and Europe was slowly beginning to recovery from COVID-19 delta variant. We would expect sell through in these regions to improve in the fourth quarter. New price increases should result in sales rising in the fourth quarter and more so in the first quarter.</li></ul> <ul type="disc"><li>ACCO returning to higher level of free cash flow after working capital requirements is being discounted in ACCO’s stock valuation.</li></ul>


Acco Brands (ACCO) reported third quarter results benefiting from stronger back to school sell through and offices reopening leading to commercial product sales. The return to in-person learning/working helped drive sales in the quarter, but with some softness as a result of supply chain constraints in being able to get product to market. ACCO reported sales of $526.7 million and net income of $20.2 million, or $0.21 per share. We had been forecasting sales closer to $540 million on the expectation the return of in-person learning would drive retailers to replenish their inventory levels. While the sell through did occur, retailers were more conservative to carry inventory due to the increase of COVID-19 cases late in the shopping season. In the third quarter, Australia and Mexico were mostly under lockdowns or restrictions and Europe was slowly beginning to recovery from COVID-19 delta variant. We would expect sell through in these regions to improve in the fourth quarter. New price increases should result in sales rising in the fourth quarter and more so in the first quarter. ACCO returning to higher level of free cash flow after working capital requirements is being discounted in ACCO’s stock valuation.

<ul type="disc"><li>The return of in-person learning has not dissipated as was once the case at the start of this school year. Back to school shopping continued without pause and should result in Acco Brands (ACCO) experiencing a better than expected third quarter.</li></ul> <ul type="disc"><li>The Company has been highlighting the channel inventory that would need to be consumed before retailers would replenish their stock. Industry data suggests consumers were buying more this year and buying earlier in the back-to-school shopping season.</li></ul> <ul type="disc"><li>It is not only North America where ACCO could experience a lift in sales. The end of the year is usually the time when the southern hemisphere goes through their back-to-school shopping season.</li></ul> <ul type="disc"><li>Investor focus remains on recently acquired PowerA business, which does change the growth profile of ACCO However, it would be the supplies and equipment side of the business making much of the splash from a return to normalcy environment.</li></ul>

The return of in-person learning has not dissipated as was once the case at the start of this school year. Back to school shopping continued without pause and should result in Acco Brands (ACCO) experiencing a better than expected third quarter. The Company has been highlighting the channel inventory that would need to be consumed before retailers would replenish their stock. Industry data suggests consumers were buying more this year and buying earlier in the back-to-school shopping season. It is not only North America where ACCO could experience a lift in sales. The end of the year is usually the time when the southern hemisphere goes through their back-to-school shopping season. Investor focus remains on recently acquired PowerA business, which does change the growth profile of ACCO However, it would be the supplies and equipment side of the business making much of the splash from a return to normalcy environment.

<ul type="disc"><li>
Acco Brands (ACCO) reported second quarter results benefiting from reopening after COVID-19 restrictions. ACCO highlighted an increase in commercial product sales, which had not been the case since the pandemic began. We had highlighted such a scenario earlier this year and maintain an outlook of ACCO growing sales in 2021 and 2022.</li></ul> <ul type="disc"><li>The return of working and learning on premise has started to drive commercial and education sales that had disappeared in 2020. Equipment sales that are high priced items have not been part of ACCO’s business for the last five quarters</li></ul> <ul type="disc"><li>The acquisition of PowerA is growing faster than we were expecting and should benefit from additional supply of new consoles becoming available in the second half.</li></ul> <ul type="disc"><li>The growth prospects of 2021 and continued recovery in 2022 should result in ACCO being a sales and earnings growth story for the next couple of years.</li></ul>


Acco Brands (ACCO) reported second quarter results benefiting from reopening after COVID-19 restrictions. ACCO highlighted an increase in commercial product sales, which had not been the case since the pandemic began. We had highlighted such a scenario earlier this year and maintain an outlook of ACCO growing sales in 2021 and 2022. The return of working and learning on premise has started to drive commercial and education sales that had disappeared in 2020. Equipment sales that are high priced items have not been part of ACCO’s business for the last five quarters The acquisition of PowerA is growing faster than we were expecting and should benefit from additional supply of new consoles becoming available in the second half. The growth prospects of 2021 and continued recovery in 2022 should result in ACCO being a sales and earnings growth story for the next couple of years.

United States

Acco Brands Corporation manufactures office products. The Company produces staplers, daily scheduling diaries, shredders, laminating equipment, and presentation boards.

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ACCO Brands (ACCO US)

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ACCO: Supplying Rising Free Cash Flow

ACCO reported third quarter results showing an increase in back-to-school related sales and commercial equipment. PowerA should experience greater...

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ACCO: Mastering in Post COVID-19

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ACCO: Scaled and Growing

ACCO is seeing the return of commercial equipment sales while its consumer sales continue to grow. The combination should result in higher free...

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