Counselor Top 40 distributor 4imprint (asi/197045), the largest distributor in the North American promotional products industry, reported this week that total global sales in the first half of 2024 increased 5% compared to the same two quarters last year.
The publicly traded company, headquartered in London, UK, with primary operations in Oshkosh, Wisconsin, also reported on August 7 that pre-tax earnings increased 11% year-over-year from $66 million in 2023 to $73 million in 2024. The company cited its strong financial position, noting that cash and bank deposits totaled $121.5 million in the period ended June 29, an increase of 63% year-over-year.
Operating profit margin also increased slightly to 10.5% from 10% last year and the company announced an interim dividend per share of $0.80, an increase of 23%.
“Due to the company’s improved financial momentum, particularly the higher gross profit margin and marketing mix flexibility, pre-tax profit for the full year 2024 is expected to remain within the current range of analyst forecasts,” said Paul Moody, Chairman of 4imprint.
In addition, the company said it received 1,085,000 orders in the first half of the year, compared to 1,047,000 in 2023. This represents an increase of 3.6%, although it was able to attract slightly fewer customers (145,000 compared to 158,000 in 2023). The average order value increased by 2% year-on-year. “Demand remained stable despite difficult market conditions,” the report said.
Paul Moody, 4imprint (asi/197045) Chairman
Moody added: “The Board is confident that the Group can navigate the current market conditions, combining robust short-term financial results with attractive prospects for further significant organic growth over the medium term.”
The company says it is completing the $20 million expansion of its Oshkosh facility in time for its planned opening in late third quarter to support growth in its apparel category. And the search continues for a successor to CFO David Seekings, who brings nearly three decades of experience at the company. Seekings has announced he will retire at the end of 2025.
Geopolitical conflict and economic uncertainty continue to weigh on the advertising industry’s overall performance, even as sales numbers are up year-to-date. ASI Research’s quarterly sales survey found that distributors increased sales by 1.3% year-over-year in the second quarter, after numbers declined in the previous quarter for the first time in three years. Distributors reported that business picked up in late first and early second quarters – the Counselor Confidence Index also rose from 94 in the first quarter to 96 in the second quarter.
With North American promotional product sales of $1.3 billion in 2023, 4imprint ranked first on Counselor’s recent Top 40 list of the industry’s largest distributors. CEO Kevin Lyons-Tarr and Senior Vice President of Merchandising and Supply Chain Suzanne Worwood both rank first on Counselor’s Power 50 list of the industry’s most influential people.
