ACCO Brands Corp Q3 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Greg Burns - SIDOTI &Company - Analyst : Morning. When you look at the dynamics of what's happening now in, in Brazil and maybe Mexico, if you look back couple of quarters ago or maybe a year or so ago, that that part of the business was outperforming the US. But now it seems like you're seeing a slow down there is what you're seeing there macro related or is it some of the more secular headwinds that face your categories? Catching up to these other geographies.

Question: Greg Burns - SIDOTI &Company - Analyst : What's the, what's the historic split between fourth quarter, first quarter and Brazil typically?

Question: Greg Burns - SIDOTI &Company - Analyst : Okay. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 01, 2024 / 12:30PM, ACCO.N - Q3 2024 ACCO Brands Corp Earnings Call And in terms of the, of North America, you mentioned some of the, some of the items I think that you're some of the things you are putting in place to offset, maybe some of the, the buying dynamics that you're seeing in the market with retailers, but it's been maybe that now we're two years on, is this just the new normal of how the channel is going to operate and you have to adjust to it. And maybe you can maybe give us a little bit more color on how, how you can offset some of those, the new buying patterns.

Question: Joe Gomes - Noble Capital Markets, Inc. - Analyst : It's Joe Gomes. Thanks for taking my, my questions. I kind of want to follow up piggyback on the on the last question. But maybe on a broader picture outside of just the back to school, you noted that the demand environment remains muted and I'm just wondering as you talk to your customers and, and look at, you know, your data. You know, what, why, what are the, the kind of the the key points as to why you believe the demand environment is remaining muted?

Question: Joe Gomes - Noble Capital Markets, Inc. - Analyst : Thank you for that. And then on the lower margin business exit, you know how much of that is left, you know, how much of that impact in the, in the fourth quarter do you. Think?

Question: Joe Gomes - Noble Capital Markets, Inc. - Analyst : Okay. And then one more for me, if I may time you talked about, you know, expansion in the non traditional channels. I was wondering to give us a little bit more color on that. And you know, how big of an opportunity do you see that in the non traditional channels?

Question: Joe Gomes - Noble Capital Markets, Inc. - Analyst : Great, thanks for that. I'll get back in Queue. .

Question: Kevin Steinke - Barrington Research - Analyst : Hi, good morning. You, you discussed the stabilizing trends in certain product categories. Maybe if you could just dive a little bit more into the categories, we're, you're seeing stabilization.

Question: Kevin Steinke - Barrington Research - Analyst : Okay, good. And maybe just update us on, you know, the product development pipeline as you, you look to adapt to the new world of work. And you know, that's, I think a big emphasis right now, innovation, but maybe if you could just update us on your efforts there.

Question: Kevin Steinke - Barrington Research - Analyst : Yes, absolutely. That was very helpful insight. I appreciate that. I guess just lastly, you know that the improved trends or growth and computer accessories, do, do you think there's some continue the momentum or, or legs where, where that growth can continue as kind of we move into the fourth quarter of next year?

Question: Kevin Steinke - Barrington Research - Analyst : Okay. Thanks for the comments. I'll turn it back over.

Question: Hale Holden - Barclays - Analyst : Hey, good morning. I had two questions, Tommy, you mentioned in your script, the potential for additional cost saves and 25. And I was wondering if we should be thinking about that as sort of normal course programs or something bigger like you've done in the past.

Question: Hale Holden - Barclays - Analyst : Okay. And then just as a follow up to last time she gave the outside party that's working with Kensington and sounds like also Power A. That's to help you streamline into new product categories or lean in the product categories that are working or is that potentially to evaluate divesting product categories?

Question: Hale Holden - Barclays - Analyst : That's exciting. Thank you. I appreciate it.

Question: William Reuter - Bank of America - Analyst : Good morning. So you mentioned clearly that back-to-school inventories at retail are low. You also said this is two consecutive years of this are inventory levels at retail below where they were last year, such that it could contribute to better back to school selling at the early parts of next season. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 01, 2024 / 12:30PM, ACCO.N - Q3 2024 ACCO Brands Corp Earnings Call

Question: William Reuter - Bank of America - Analyst : That's good to hear. And then, I think this is maybe the second consecutive quarter that there's been some mention of M&A I guess, is there increased interest in, in doing acquisitions at this point? You're clearly still above your leverage target. And then if so, would these be more kind of traditional product categories where you may be able to purchase things at low multiples or they kind of faster growing opportunities where the multiples are going to buy?

Question: William Reuter - Bank of America - Analyst : Got it. So I guess just a little follow up to that, the fact that you put it in the press release, I I don't remember that being in the press release before, does it indicate that there's a greater interest in M&A than maybe there would have been 12 months ago?

Question: William Reuter - Bank of America - Analyst : Got it. Alright, I'll Pass to others. Thank you.