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ACU NYSE AM· Acme United Corp
Earnings report Q3 2023

ACME United Corporation Reports Modest Increase in Revenue for Q3 2023

Segments of Revenue

ACME United Corporation reported net sales of $50.38 million for the three months ended September 30, 2023, representing a 1% increase compared to the same period in 2022. For the nine months ended September 30, 2023, net sales amounted to $149.56 million, slightly lower than the $149.85 million recorded in the same period in 2022.

Strengths

ACME United Corporation demonstrated a modest increase in revenue for the latest quarter. The company's sales of cutting, sharpening, and measuring products traditionally experience stronger performance in the second and third quarters, driven by the seasonal back-to-school market. ACME United's U.S. segment saw a notable increase in operating income, with a $2.65 million rise for the three months ended September 30, 2023, compared to the same period in 2022. This growth can be attributed to productivity improvements at manufacturing and distribution facilities, cost-saving initiatives, and lower inbound freight costs.

Challenges

While ACME United Corporation reported a slight increase in revenue, the overall growth rate was relatively modest. The company's net sales for the nine months ended September 30, 2023, were slightly lower than the same period in 2022. This indicates a potential challenge in maintaining consistent revenue growth.

Noteworthy

ACME United Corporation's operating income for the three months ended September 30, 2023, significantly improved compared to the same period in 2022, with a rise from $953,000 to $3,657,000. This increase was primarily driven by productivity improvements, cost-saving initiatives, and lower selling, general, and administrative expenses. Additionally, the company reported a comprehensive income of $1.85 million for the quarter, compared to a loss of $840,000 in the same period in 2022.

Summary

ACME United Corporation achieved a modest increase in revenue for the latest quarter, driven by stronger sales in the U.S. segment and productivity improvements. However, the overall growth rate was relatively modest, and the company's net sales for the nine-month period were slightly lower than the previous year. ACME United will need to address this challenge and focus on sustaining consistent revenue growth in the future.

Source documents

Form 10-Q  filed on Nov 08, 2023
88 pages scanned

Reference data

Company financials Q3 revenue 50.4M
Analyst estimates Q3 EPS missed by NaN%
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