The company attributed the sales growth to the expansion of its customer base and new product introductions in the first aid and medical segment.
Sales in the U.S. segment increased 9% Y/Y. Net sales in Canada decreased by 10%, mainly due to retailer inventory reductions, while it fell by 6% in Europe.
Gross margin expanded to 35.5% for the quarter versus 34.5% last year on cost-saving initiatives implemented in the fall of 2022.
Operating margin expanded 161 basis points to 4.8% in the quarter under review, while the operating income jumped 59.6% to $2.19 million.
Cash and equivalents amounted to $2.76 million as of March 31, 2023.
Net income rose 19.3% Y/Y to $990,000. EPS increased 27.3% to $0.28, missing the analyst consensus of $0.44.
Continued inventory reductions by some large mass market customers partially hampered overall quarterly performance.
"The Company is on track to realize projected annual savings of $5 million in 2023 due to the many productivity improvements we have been implementing," said CEO Walter C. Johnsen. "We look forward to growth and improved profitability in 2023."
Price Action: ACU shares are trading higher by 0.76% at $25.10 on the last check Friday.
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This article Acme United Clocks 5.8% Sales Growth In Q1 Backed By Solid Customer Base, New Product Launches originally appeared on Benzinga.com
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