Cimpress (asi/162149), a publicly traded Top 40 promotional products distributor, increased company-wide full-year global sales by 12%, but still posted a loss of $54.3 million, or -$2.08 per share, according to a financial report released Thursday, July 28. 

The Dundalk, Ireland-headquartered company, whose businesses include web-based retailer of print/promo Vistaprint and former Top 40 distributor National Pen, registered total sales of nearly $2.9 billion in its 2022 fiscal year, which concluded June 30.

Robert Keane, Cimpress

Despite the strong topline gain, Cimpress’ loss resulted from factors that included increased investment in its Vista division, greater advertising costs and higher expenses related to restructuring, the company said. The loss was less severe than in fiscal 2021, when Cimpress recorded a loss of $85.2 million, or -$3.28 per share.

For the year, National Pen registered global sales of $341.8 million, a 9% annual increase. “National Pen delivered healthy annual revenue growth and EBITDA, especially when excluding the drop off of pandemic-driven face mask sales,” said Cimpress CEO Robert Keane.

Cimpress’ Vista division, which includes Vistaprint and other businesses like do-it-yourself digital design platform VistaCreate, tallied full-year revenue of $1.51 billion, a 6% increase over fiscal 2021. Even so, Keane said that Vista’s financial results “remain well below what we believe to be their potential.”

He’s predicting better days ahead. “We believe that we will accelerate Vista’s annual organic constant-currency revenue growth in (fiscal year) 2023 and beyond and drive substantially improved profitability over the next several years,” said Keane.

Based on estimated 2021 North American promo product revenue of $464 million, Cimpress ranked fifth on Counselor’s just-released list of the largest distributors in the industry.

In a note to investors, Keane said Cimpress has taken steps to reduce costs.

“This includes plans to exit our businesses in Japan and China and reducing headcount in Vista and Cimpress technology in areas that have been deprioritized,” Keane said. “When combined with the decision last quarter by National Pen to move European production from Ireland to the Czech Republic, the annualized savings from these actions are expected to be about $25 million in aggregate and will help offset wage inflation and other cost increases.”