July 27, 2023
Profitability Returns for Cimpress in Its Fourth Quarter
The Top 40 distributor, which owns Vistaprint and National Pen, also increased total global sales in both Q4 and its entire fiscal year.
Top 40 distributor Cimpress (asi/162149) got back to profitability in its fourth quarter – and increased sales during the three-month span as well as in its full fiscal year.
Those were key takeaways from a financial report the Dundalk, Ireland-headquartered firm released on July 26 regarding its 2023 fiscal year, which concluded June 30.
Robert Keane, Cimpress
The parent company of Vistaprint, former Top 40 distributor National Pen and other businesses, Cimpress increased total global full-year sales 6.6% to $3.07 billion. For the fourth quarter, also ended June 30, revenue rose 9% year over year to $788.8 million.
When it came to earnings, Cimpress was back in the black in Q4 following a run of quarterly losses.
Fourth quarter net income tallied about $28.7 million, or $1.09 per basic share. The profitability came as Cimpress’ sales increased and as the benefits of streamlined operations and cost reductions began to take hold. Quarterly earnings before interest, taxes, depreciation and amortization (EBITDA) more than doubled to $131 million.
“We expect our recent cost reductions to deliver $100 million of recurring annualized benefit to adjusted EBITDA,” Cimpress CEO Robert Keane said in a note to investors. “They have already delivered about $24 million of benefit in Fiscal Year 2023, leaving an incremental $76 million of year-over-year savings expected in Fiscal Year 2024.”
Despite Q4 profitability, Cimpress still experienced a net loss of $185.9 million, or -$7.08 per share, for its fiscal year. Factors that contributed to the loss over the course of the year included restructuring expenses and increased interest outlay, among others.
For the entire fiscal year of 2023, Cimpress’ Vista division – which includes e-commerce-driven seller of printed business marketing materials and promo products Vistaprint – increased total global sales 6.5% to $1.61 billion. National Pen’s total global revenue for the year was also up, rising 7.1% to about $366.3 million.
For fiscal year 2024, Cimpress anticipates an 8% revenue jump across all its business divisions.
Based on reported 2022 North American promotional product sales of $283 million, Cimpress ranked 10th on Counselor’s just-released list of the largest distributors in the industry.