Top 40 distributor 4imprint (asi/197045) says that order intake counts were up 22% through the first four months of 2023, though the promotional products firm anticipates that the rate of year-over-year business growth will slow in the months ahead.

Meanwhile, The Pebble Group, parent company of promo industry service provider Facilisgroup and global distributor Brand Addition (asi/202515), says that its company-wide revenue for January 2023 through June 2023 is expected to exceed 2022’s half-year sales tally.

Those are some of the key takeaways from trading updates that 4imprint and The Pebble Group issued this week. While both companies have extensive operations in North America, they are headquartered and publicly traded in the United Kingdom. The updates were to give insights to investors. (The Pebble Group is also being traded on a public market in the U.S.)

4imprint Expects Growth To Continue But at Slower Rate

In 2022, 4imprint made history by becoming one of the first two distributors to generate more than $1 billion or more in North American promo product revenue in a single year.

The London-based company, whose main market is North America and whose primary operations are based in Wisconsin, said that the year-over-year rise in order intake for early 2023 was expected – not least of all because business was still in recovery mode from COVID-driven economic challenges in the early part of 2022.

“This result was anticipated in our operational planning, which was set firmly in the context of relatively weak, pandemic-affected prior-year comparatives,” said 4imprint Chairman Paul Moody.

“We expect the percentage increases in total order activity seen in the first quarter to moderate for the rest of 2023.” Paul Moody, 4imprint

4imprint’s business strengthened considerably as 2022 went on. As such, outpacing last year’s performance will take more doing. Still, the distributorship does anticipate order intake growth – just not at as high a rate of increase.

“We expect the percentage increases in total order activity seen in the first quarter to moderate for the rest of 2023,” Moody said, adding: “It’s still early in the year and we’re aware of the possibility of economic slowdown in our primary U.S. market. Nevertheless, we still expect to deliver a full-year revenue and operating profit performance consistent with the current range of analysts’ forecasts.”

One of those forecasts predicts that 4imprint’s total global revenue will be between $1.25 billion and $1.3 billion in 2023, with a consensus estimate of $1.28 billion. In 2022, 4imprint’s total global sales were $1.14 billion, a nearly 45% increase over 2021.

4imprint said it will provide a half-year trading update in August. That report is expected to include particulars on revenue, profit and earnings per share.

The Pebble Group: Half-Year Sales Could Exceed £60.3 million

Meanwhile, The Pebble Group said that business across Facilisgroup and Brand Addition is trending up in 2023. The Pebble Group’s sales for the half-year are likely to surpass the revenue total of £60.3 million (about $75 million) the firm generated through the first six months of 2022, the trading update indicated. The company reports financial performance in British pounds.

Half-year profit is also reportedly headed up compared to 2022’s half-year performance, when The Pebble Group’s operating profit was £3.1 million – nearly $4 million.

Brand Addition, a U.K.-based distributor that does business globally, including about $35 million in U.S. sales in 2022, has experienced “robust” order intake to date in 2023, according to the trading update.

It was a year of revenue growth for Facilisgroup and Brand Addition, according to the companies' parent firm The Pebble Group. Details here: https://t.co/9CflpcNoF7#promoproducts @Facilisgroup @brandaddition @ASI_MBell

— Chris Ruvo (@ChrisR_ASI) March 24, 2023

“We believe our target market of large international organizations continues to trend toward closer control of the quality, provenance and global consistency of their brands when utilizing promotional products,” the update said. “This supports a deepening of our relationships with existing clients and an increased opportunity for Brand Addition to attract new client contracts.”

Headquartered in St. Louis, MO, Facilisgroup is a software as a service provider and partnering community for the promo industry. The trading update noted that total gross merchandise value transacted through Facilisgroup is outpacing the prior year, as is the amount of money being spent through Facilisgroup’s preferred supplier network.

“The positive financial trajectory of Facilisgroup continues as we progress our ambitions for the business,” the update said. “Our progress remains aligned with our strategy, which is to scale Facilisgroup revenues through gaining market share and to introduce further technology products that widen our addressable customer numbers.”

The Pebble Group is scheduled to release a half-year trading update with numbers on revenue, profit and more in September.

In March, The Pebble Group reported that it increased total global sales 16% year over year in 2022 to £134 million – about $165 million.

In 2022, Brand Addition’s worldwide business rose about 15% to approximately $145 million (about £117.4 million). Facilisgroup increased annual revenue in 2022 by 31% to £16.6 million – about $20 million. The vast majority of Facilisgroup’s business is in the U.S.