On this page of StockholderLetter.com we present the latest annual shareholder letter from ACME UNITED CORP — ticker symbol ACU. Reading current and past ACU letters to shareholders can bring important insights into the investment thesis.
To our fellow shareholders: Acme United had a strong year in 2024. We had record net sales of $194.5 million and EBITDA of $20 million. As you may recall, we sold our Cuda and Camillus hunting and fishing business in November 2023 for $19.8 million. We used the after-tax proceeds of approximately $15.0 million to reduce debt and position the company for growth. The sale of Cuda and Camillus represented a return of over 100 times our initial investment. During 2024 we reported net sales growth of 2%, despite the reduction of approximately $9 million in revenues from the businesses we sold. Net revenues adjusted for the sale of Cuda and Camillus increased 6% during 2024. Our net income in 2024 was $10.0 million compared to $8.2 million in 2023, an increase of 23%. We adjusted our expenses to compensate for the lost contribution from the businesses we sold and generated over $2.0 million in additional productivity savings. This performance was better than we planned. Earnings per share were $2.45 in 2024 compared to $2.23 in 2023, an increase of 10%. Our first aid and medical business had strong performance. Its revenues were approximately $120 million. Refills of components for first aid kits were approximately $30 million. We introduced Smart Compliance first aid cabinets with RFID technology in 2024, which permit automatic replenishment of refills. This is the annuity segment of our business that builds on our growing installed base of industrial first aid kits. Automatic replenishment provides substantial savings to our customers and captures a high percentage of items needed to keep the kits compliant with OSHA and ANSI standards. Our Westcott cutting and DMT sharpening businesses had excellent results in 2024. Net revenues in this segment were approximately $75 million, an increase of 10% compared to 2023. We gained share in the craft market, expanded our distribution of our high leverage and proprietary adjustable blade scissors, and broadened the product family of cutters to open boxes in industrial settings and in homes. We are excited about new sharpening tools that we successfully introduced in the kitchen and culinary markets. Our productivity initiatives resulted in over $2.0 million in annual savings. We attacked expenses on many fronts, including reducing the cost of first aid boxes, automating the placement of items into unitized packages, bidding out freight and carrier charges, and installing new software tools to optimize placement of items in our warehouses. We installed new warehouse racking in our largest distribution center. This facility in Rocky Mount, NC has over 340,000 square feet on 33 acres of land and has been the backbone of our expansion during the past 8 years. The new racking increases our capacity by 30% and positions us to handle additional growth. Our businesses in Canada and Europe also had a good year. We moved into a new facility in Laval, Canada to handle growth in First Aid Central. Our European business made investments to expand in the first aid and medical segment and generated another profitable year. We anticipate that there will be challenges with tariffs in 2025, and we feel we are ready. During the past 8 years, we have purchased 10 companies with production facilities in the U.S. and Canada and worked to diversify our sourcing to many global locations, including India, Thailand, and Egypt. We would like to acknowledge Stevenson Ward, who will be retiring from our board of directors in April. Steve has been chair of our Audit Committee and a valued confidant, colleague, and friend. He leaves us a much stronger company than when he arrived more than 20 years ago. We would personally like to say thank you.
As we look into 2025, we are optimistic and confident. We have a strong customer base, excellent financial strength, and a solid book of new business. Sincerely, Brian S. Olschan President and COO Walter C. Johnsen Chairman and CEO
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ACU Shareholder/Stockholder Letter Transcript:

To our fellow shareholders:
Acme United had a strong year in 2024. We had record net sales of $194.5 million and EBITDA of $20 million.
As you may recall, we sold our Cuda and Camillus hunting and fishing business in November 2023 for
$19.8 million. We used the after-tax proceeds of approximately $15.0 million to reduce debt and position the
company for growth. The sale of Cuda and Camillus represented a return of over 100 times our initial
investment.
During 2024 we reported net sales growth of 2%, despite the reduction of approximately $9 million in
revenues from the businesses we sold. Net revenues adjusted for the sale of Cuda and Camillus increased 6%
during 2024.
Our net income in 2024 was $10.0 million compared to $8.2 million in 2023, an increase of 23%. We adjusted
our expenses to compensate for the lost contribution from the businesses we sold and generated over
$2.0 million in additional productivity savings. This performance was better than we planned.
Earnings per share were $2.45 in 2024 compared to $2.23 in 2023, an increase of 10%.
Our first aid and medical business had strong performance. Its revenues were approximately $120 million.
Refills of components for first aid kits were approximately $30 million.
We introduced Smart Compliance first aid cabinets with RFID technology in 2024, which permit automatic
replenishment of refills. This is the annuity segment of our business that builds on our growing installed base
of industrial first aid kits. Automatic replenishment provides substantial savings to our customers and
captures a high percentage of items needed to keep the kits compliant with OSHA and ANSI standards.
Our Westcott cutting and DMT sharpening businesses had excellent results in 2024. Net revenues in this
segment were approximately $75 million, an increase of 10% compared to 2023.
We gained share in the craft market, expanded our distribution of our high leverage and proprietary
adjustable blade scissors, and broadened the product family of cutters to open boxes in industrial settings
and in homes. We are excited about new sharpening tools that we successfully introduced in the kitchen and
culinary markets.
Our productivity initiatives resulted in over $2.0 million in annual savings. We attacked expenses on many
fronts, including reducing the cost of first aid boxes, automating the placement of items into unitized
packages, bidding out freight and carrier charges, and installing new software tools to optimize placement of
items in our warehouses.
We installed new warehouse racking in our largest distribution center. This facility in Rocky Mount, NC has
over 340,000 square feet on 33 acres of land and has been the backbone of our expansion during the past 8
years. The new racking increases our capacity by 30% and positions us to handle additional growth.
Our businesses in Canada and Europe also had a good year. We moved into a new facility in Laval, Canada to
handle growth in First Aid Central. Our European business made investments to expand in the first aid and
medical segment and generated another profitable year.
We anticipate that there will be challenges with tariffs in 2025, and we feel we are ready. During the past 8
years, we have purchased 10 companies with production facilities in the U.S. and Canada and worked to
diversify our sourcing to many global locations, including India, Thailand, and Egypt.
We would like to acknowledge Stevenson Ward, who will be retiring from our board of directors in April.
Steve has been chair of our Audit Committee and a valued confidant, colleague, and friend. He leaves us a
much stronger company than when he arrived more than 20 years ago. We would personally like to say
thank you.

As we look into 2025, we are optimistic and confident. We have a strong customer base, excellent financial
strength, and a solid book of new business.
Sincerely,
Brian S. Olschan
President and COO
Walter C. Johnsen
Chairman and CEO



shareholder letter icon 3/24/2025 Letter Continued (Full PDF)
 

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