Cimpress has effectively lost a year of its double digital growth thanks to the global pandemic and lockdowns. Its 2021 figures are up on 2020, but are more comparable to the results from 2019 rather than of the pandemic year in 2020.
Nevertheless it turned revenue of $2.6 billion and an Ebitda of $349 million. This was higher than 2020, but still down on 2019 when total revenue achieved stood at $2.75 billion. Earnings were also lower than 2019 when Ebitda was $468.2 million.
In his letter to shareholders, CEO Robert Keane explained that the company had used the crisis to cut overhead costs by $30 million, using a mixture of measures including a reduction in the amount of office space occupied. What it calls ‘remote first’ working will become the norm across the business.
Keane goes on to explain that this was one of four outcomes from the crisis for Cimpress. The lockdowns showed that the company’s decentralised structure was resilient; that constraints are powerful in that “we learned what we could do without” he says; in encouraging rapid development and deployment of new products to help customers cope; and that giving back to the communities “is never more important”.
Vistaprint remains the largest arm of the business and the first to bounce back. In contrast the Upload & Print arm, based on seven European print operations, remains depressed thanks to the two lockdowns and continuing virus mitigation measures across Europe. This “severely impacted business”, the company says, and it is only now starting to show strengthening revenues.
The focus at Vistaprint is on change, moving from transactions to relationships, as the company puts it, in order to capture more share of spend with existing customers. And mindful, perhaps, of the rise of online design tools like Canva, Vista is moving design from Do it yourself, through Do it with help to Do it for me. Per customer spend is up.
It has completed the revamp of its UK website, as a new designed is rolled out across the globe. This can carry more products and design capabilities. The upgrade of the key US site will take place next year.
Cimpress also notes an increase in personal physical products, as well as an increase in the use of QR codes to give print greater connectivity to the digital world.
The company is increasing the amount spent on advertising to coincide with economic bounce back and has spent $4.0 million on cap ex in the year to the end of June. This has included a third Canon inkjet press for Vistaprint. And it has earmarked an increase in cap ex for the current financial year to cope with growth and the introduction of new products.
