4imprint (asi/197045), a Top 40 promo products distributor, increased its total global revenue 45% year over year in 2022 to $1.14 billion, while profit before tax soared 243% to $103.7 million, according to just-released financial data from the company.

Executives noted that it was the first time in 4imprint’s history that sales topped the billion-dollar mark, as well as the first time that profit before tax exceeded $100 million. As would follow, executives emphasized that not only has 4imprint recovered from COVID-19 era sales and earnings retreats, but the firm also exceeded pre-pandemic performance.

“Guided by a clear strategic plan and driven by the tremendous efforts of our teammates and supplier partners, we have emerged from the pandemic stronger than we entered it, generating record levels of revenue and profitability, increased market share and excellent progress on several important initiatives,” the publicly traded company said in a full-year financial report released on Wednesday, March 15.

4imprint had announced in late 2022 and again in early 2023 that final financial results were likely to show that its 2022 revenue was above $1 billion. In January, Top 40 distributor HALO Branded Solutions (asi/356000) also shared that its full-year 2022 sales rose to the 10-figure range.

Both milestones are industry firsts: Counselor’s annual ranking of the 40 largest promotional products distributors has never featured a billion-dollar firm. Now this year’s list, due out this summer, could have two once a final analysis is performed. There are currently three billion-dollar Top 40 suppliers. ASI Research shows that distributors collectively increased sales by 11.4% to $25.8 billion in 2022, tying an industry record that was set in the last pre-pandemic year of 2019.

Sales in North America Soar 45%

While headquartered in London, U.K., 4imprint’s main operations are in North America, where it generates most of its sales. In North America, 4imprint’s revenue in 2022 tallied $1.12 billion, up 45% from 2021. In 4imprint’s other major geographic market – the United Kingdom and Ireland – sales also jumped 45% year over year, reaching $19.77 million.

Meanwhile, total global operating profit leapt from nearly $31 million in 2021 to $102.9 million in 2022. Profit after tax was $80.14 million – a 254% year-over-year increase. Earnings per share were about $2.85, up from $0.80 in 2021.

$80.14 million
4imprint’s profit after tax in 2022

In total, 4imprint processed 1,860,000 orders in 2022, representing an increase of 30% over 2021. Last year, the distributorship acquired 307,000 new customers, a 17% increase over the 263,000 acquired in 2021.

Average order values in 2022 were 5% above the prior year, the result of changes in merchandising mix as well as general inflation-driven price increases through the year, executives said. This led to a total increase at the demand revenue (value of orders received) level of 36% over 2021.

Investments in Marketing, People & ESG

4imprint, which operates a direct-to-buyer ecommerce business model, said investments in marketing and personnel were essential to driving success. The firm is planning what executives described as further “significant incremental investment in the business in 2023, primarily in people, in order to consolidate gains already made and to drive future profitable revenue growth.”

“The progress in 2022 is a direct consequence of both the clarity of our strategic direction and our deep-seated cultural commitment to ‘doing the right thing’ for all stakeholders,” said 4imprint Chairman Paul Moody.

“Following an extremely strong trading performance in 2022, we enter the 2023 financial year with momentum and confidence.” Paul Moody, 4imprint

During pandemic-affected years, Moody continued, “we did not deviate from our commitment to our people. They are the cornerstone of the 4imprint culture and are essential to producing such impressive financial results. We continued to develop and invest in the increasingly important brand component of our marketing program. This sustained strategic commitment has given us the flexibility we anticipated and is clearly having a beneficial impact on the efficiency of our marketing mix.”

Executives said 4imprint also made progress on its environmental, social and governance (ESG) initiatives. That included being recertified as a CarbonNeutral company by Climate Impact Partners and installing a 2,660-panel solar array to help power operations at its Oshkosh, WI distribution center.

4imprint CEO Kevin Lyons-Tarr, a member of Counselor’s Power 50 list of the promotional products industry’s most influential people, called the solar array “an exciting step forward on our journey to become a more sustainable company. I’m proud of the work the team has done to bring this project to fruition.” Sustainability/corporate social responsibility initiatives have been on the rise in promo.

2023 Outlook

4imprint entered 2023 with $86.8 million in cash and bank deposits. Looking ahead, the firm is optimistic about 2023.

“Following an extremely strong trading performance in 2022, we enter the 2023 financial year with momentum and confidence,” said Moody. “Trading results in the first few weeks of 2023 have been encouraging.”

Based on reported 2021 North American promotional product revenue of $773.7 million, 4imprint ranked second on Counselor’s most recent list of the largest distributors in the industry.