Revlon reports 3.2% increase in net sales in 2012
Gains spurred by higher net sales of Revlon colour cosmetics
Revlon has announced that net sales topped $1.4bn in 2012, an increase of $44.7m or 3.2% on 2011. According to the company, this increase was driven by higher net sales of Revlon colour cosmetics, Revlon ColorSilk hair colour and its SinfulColors colour cosmetics brand. Net sales in the fourth quarter were $391.3m, up 8.9% on the prior year period.
Operating income was $188.7m in 2012, down from $203.3m in 2011, while adjusted EBITDA slid to $254m from $266m in 2011. Both Revlon’s operating income and adjusted EBITDA in 2012 included $24.1m of restructuring and related charges and a net charge of $8.9m with respect to shareholder litigation related to the company’s 2009 exchange offer.
Revlon enjoyed a particularly profitable year in the Americas. In the US, net sales were $799.8m, an increase of 5.6%, while sales in the newly consolidated Latin America and Canada region were $203m. Combined with a $5.5m increase in net sales in Asia Pacific, this helped offset the 11.6% decrease in net sales in Europe, Middle East and Africa. Sales in this region were $24.3m lower than in 2011 due to the higher sales returns accrual of $1.6m associated with restructuring and related activities in France and Italy, as well as lower net sales of fragrance in the UK and other beauty care products throughout the region as a whole.
Commenting on 2012’s figures, Revlon President and CEO Alan T Ennis said: “From a marketplace perspective, we introduced new, innovative products, which, together with effective brand communication and strong in store execution drove positive performance of or Revlon branded products in many of our key regions. Our financial performance was strong as we again maintained highly competitive margins and delivered $84m of free cash flow. We are also very pleased with the integration and performance during the year of our SinfulColors and Pure Ice acquisitions.”
