OP Sales Improve For 3M

Consumer goods giant 3M appears to have reversed its ongoing office products weakness in Q4.

For the three months ended 31 December, sales in 3M’s Consumer category were up 7.3% in constant currency to $1.2 billion. Most notably, the group reported sales growth in stationery and office supplies, this was despite previously reported quarterly declines.

For example, in Q2 and again in Q3, foreign exchange pressures, investment costs and channel reduction weighed heavy on the segment.

In Q4, Consumer recorded sales growth in all geographic areas led by EMEA, Asia Pacific, and Latin America. Operating profit rose 17.6% to $269 million while operating margins improved by 200 basis points at 22.9%. It was the strongest quarterly organic growth since 2014.

Overall, full-year sales in the category were up 5.1% to $31.7 billion, with pre-tax profit at $7.5 billion. This was due to strong traction amongst major retail customers particularly in the e-commerce channel. Accelerated investment was also paying off, particularly in its flagship Command and ScotchBlue adhesive brands.

Source: OPI.net