Adjusted operating profit at the Quarto Group increased 10% in 2014, rising to $15.4 million from $14.0 million in 2013. The increase came despite a decline in revenue to $172.6 million from $176.3 million in 2013. Revenue from continuing operations rose 2%.
Quarto executives attributed the improved earnings to restructuring efforts that have better focused the publisher's businesses. One area of particular note was the children's book segment where sales rose 17% to $23 million, due to a combination of organic growth as well as upping the number of imprints from five to eight.
"In 2014, Quarto started to deliver on its potential following a year of tactical reorganization. The business has been simplified and focused and is beginning to deliver on its strategic priorities," said chief executive Marcus Leaver in a statement.
The U.S. remained the U.K-based Quarto's largest market, although sales fell to $64.0 million from $64.4 million in 2013. The decline was mainly due to the closing of the wholesaler, HDA, that serviced two of the company's most important accounts, Lowe's and Tractor Supply. Business improved in the second half of 2014 and with a new relationship to those outlets in place, Quarto expects an improved performance in the U.S. in 2015. Indeed, Quarto said it expects the entire company to post gains in 2015, although the impact of foreign exchange rates is likely to have a negative effect on results.
