The office supplier has released its latest financial results for Q3, with signs of progress after a difficult year.
For the three months ended September the 30th, Essendant recorded net sales of $1.29 billion (€1.13 billion), slightly down from $1.3 billion (€1.14 billion) in the same period of 2017, a drop of 1.2 percent. Gross profit for the period was up, however, rising from $171.9 million (€150.7 million) last year to $181.2 million (€158.9 million) in 2018.
There was also improvement in the company’s operating income, which for Q3 2018 totalled $3.35 million (€2.93 million), up from last year’s loss of $82.1 million (€72 million).
As a result, Essendant reduced its pre-tax loss to $5.32 million (€4.66 million), from $89 million (€78 million) in the same period of 2017. The net loss in Q3 was therefore $4.49 million (€3.94 million), an improvement on Q3 2017’s net loss of $81.9 million (€71.8 million).
It has been an uncertain time for the company of late, with doubts surrounding its future until the confirmation of a takeover from Staples in September. Reflecting on the results, Essendant’s CEO suggested the bounce created by the takeover was cause for optimism, despite a muted Q3.
“Essendant’s results in the third quarter were in line with our expectations, reflecting the team’s execution of our strategic drivers,” said Ric Phillips, President and CEO. “We continue to expect the Staples transaction to close in the fourth quarter of this year and are confident in the clear benefits the transaction will enable us to deliver to our customers and the definitive value it provides our shareholders.”
