Cimpress reports 4Q revenue growth but shows a loss

Vista parent company Cimpress plc reported fourth-quarter overall revenue grew 4% on a reported basis and 2% on an organic constant-currency basis, but net income decreased $146.5 million to a net loss of $28.4 million. This was driven by items below operating income, including $126.7 million of higher income tax expense ($41.8 million of expense in the
current year versus $84.9 million of benefit in the prior year) primarily due to an increase in a valuation allowance in Switzerland that has no impact on cash taxes and was partially released in the prior year, as well as increased unrealized losses on currency hedges.

Vista, the company’s largest segment, was up 6 percent to $466 million, with growth driven by packaging, labels, signage, and promotional products. Business cards and stationery declined 6%.

For the full year, Cimpress reported revenue grew 3% on both a reported basis and organic constant-currency basis. Net income decreased $165.0 million to $12.9 million primarily due to a $133.5 million increase in income tax expense for the reasons described above in the quarterly summary.