Counselor Top 40 distributor 4imprint (asi/197045), the largest distributor in the North American promotional products industry, reported last week that total global sales increased 5% in the first half of 2024 compared to the same two quarters last year.
The publicly traded company headquartered in London, U.K., with main operations in Oshkosh, WI, also reported on Aug. 7 that profit before tax increased 11% year over year from $66 million in 2023 to $73 million in 2024. The firm cited its strong financial standing, noting that cash and bank deposits totaled $121.5 million in the period ending June 29, a year-to-year increase of 63%.
Operating profit margin also ticked up to 10.5% from 10% a year prior, and the company declared an interim dividend per share of $0.80, an increase of 23%.
“As a result of improving financial dynamics in the business, particularly higher gross profit percentage and the flexibility of the marketing mix, it is expected that profit before tax for the 2024 full year will remain within the current range of analysts’ forecasts,” said 4imprint Chairman Paul Moody.
In addition, the company says it received 1,085,000 orders in the first half of the year, compared to 1,047,000 in 2023, an increase of 3.6%, though it acquired slightly fewer customers (145,000 compared to 158,000 in 2023). Average order value rose 2% year over year. “Demand remained steady in challenging market conditions,” says the report.
“The Board is confident in the Group’s ability to manage through the current market conditions, blending resilient near-term financial results with attractive prospects for significant further organic growth over the medium term,” added Moody.
The company says it’s finishing the $20 million expansion of its Oshkosh facility in time for a planned late Q3 opening in order to support growth of its apparel category. And the search continues for a replacement for CFO David Seekings, who has almost three decades of experience at the company. Seekings announced he will retire by the end of 2025.
Geopolitical conflict and economic uncertainty continue to weigh on the promo industry’s overall performance, though sales numbers have been on the uptick since the beginning of the year. The Distributor Quarterly Sales Survey from ASI Research indicated that distributors increased sales 1.3% year over year in Q2 after numbers declined for the first time in three years in the prior quarter. Distributors said business was picking up at the end of Q1 and into Q2 – the Counselor Confidence Index also rose from 94 in Q1 to 96 in Q2.
With 2023 North American promotional products revenue of $1.3 billion, 4imprint ranked first on Counselor’s most recent Top 40 list of the largest distributors in the industry. CEO Kevin Lyons-Tarr and Senior Vice President of Merchandising and Supply Chain Suzanne Worwood are both number-one on Counselor’s Power 50 list of the industry’s most influential people.
