4imprint (asi/197045), the largest distributor in the promotional products industry, increased its after-tax profit 22% year-over-year during the first six months of 2019 to $15.36 million, the firm revealed Wednesday. The gain came as the London, U.K.-headquartered company’s total global sales tallied $405 million in the first half of the year – a rise of 16% over the same period in 2018.

4imprint “has a clear strategic direction, a proven business model and an attractive market opportunity,” said Chairman Paul Moody. “An encouraging first half performance gives the (Board of Directors) confidence that the full year results will be slightly above current market consensus forecasts.”

Paul Moody, 4imprint

For 2019’s first half, 4imprint’s earnings per diluted share were $0.546, up from $0.4481 the previous year. Basic EPS was $0.5481, an increase from $0.4496. Profit before tax improved 22% year-on-year to $19.44 million.

The growth in earnings came even as 4imprint worked on adding 85,000-square-feet to its Oshkosh, WI distributor center, and as it invested in brand-building. “The brand initiative is resonating with our target audience, allowing us to create a broader base of diversified direct marketing techniques,” said CEO Kevin Lyons-Tarr and CFO David Seekings in a statement. “We are working to take advantage of the flexibility this offers us to target further profitable organic growth.”

Company-wide, 4imprint increased total orders by 14% through June 29^th. New customer orders rose 8% as 4imprint acquired 147,000 first-time customers. Existing customer orders jumped 16%. During the six-month period, 4imprint processed 778,000 orders.

Kevin Lyons-Tarr, 4imprint

While based in the U.K., 4imprint produces the vast majority of its revenue in North America, where sales in the year’s first half were up 17% to $394.43 million. U.K./Ireland sales weakened, dropping 3% to $10.63 million. 4imprint caveated the revenue deceleration across the pond, explaining that sales were up 3% in local currency, but were negatively impacted by exchange rate changes.

While ‘Brexit’ – the U.K.’s potential exit from the European Union -- remains a concern, 4imprint is not anticipating any major impacts to its business. “The nature and geography of (4imprint’s) operations, with 97% of revenue originating in North America, leave it in a strong position to absorb any negative effects,” Lyons-Tarr and Seekings said in their statement.

4imprint said its on track to reach its goal of generating annual revenue of at least $1 billion by 2022.

With reported 2018 North American promo product revenue of $714.6 million, 4imprint ranked first on Counselor’s latest list of the largest distributors in the industry.