Q1 2024 ODP Corp Earnings Call Transcript
Key Points
- The ODP Corp (ODP) is accelerating Project CORE initiatives, aiming for annualized run rate savings of at least $100 million, enhancing operational efficiency.
- Strong balance sheet and liquidity position, with continued execution on shareholder-focused capital allocation, including an accelerated share repurchase program.
- Positive performance in the supply chain business, Veyer, with a 29% increase in third-party revenue and nearly 40% increase in EBITDA from third-party customers.
- Commitment to operational excellence remains strong, with a focus on maintaining a low-cost business model across all operations.
- Despite a slow start to the year, The ODP Corp (ODP) is increasing its guidance for adjusted operating income, adjusted EBITDA, and adjusted EPS for 2024.
- Revenue for Q1 2024 declined by approximately 11% year-over-year, primarily due to lower sales in Office Depot and ODP Business Solutions.
- Challenges in onboarding new enterprise customers and delays which impacted top line results in the B2B segment.
- Continued macroeconomic pressures and cautious enterprise spending affecting overall business performance.
- Varis, a business unit of The ODP Corp (ODP), has been underperforming with revenue ramp slower than anticipated, leading to a decision to pursue its sale.
- Consumer traffic and demand in the B2C channel were lower, impacted by macroeconomic conditions and adverse weather, contributing to a decline in revenue.
Good morning, and welcome to the ODP Corporation's First Quarter 2021 Earnings Conference Call. (Operator Instructions) At the request of the ODP Corporation, today's call is being recorded.
I would now like to introduce Tim Perrott, Vice President, Investor Relations and Treasurer. Mr. Perrott, you may begin.
Good morning, and thank you for joining us for the ODP Corporation's First Quarter 2024 Earnings Conference Call. This is Tim Perrott, and I'm here with Gerry Smith, our CEO; and Anthony Scaglione, our Executive Vice President and CFO. During today's call, Gerry will provide an update on the business, focusing much of his commentary on our results and accomplishments for the first quarter of 2024, including our operational performance and the progress we are making on all of our initiatives to drive shareholder value.
After Gerry's commentary, Anthony will then review the company's first quarter financial results, including highlights of our divisional performance. Following Anthony's
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