Avon on road to recovery
Avon has reported an 8% rise in revenue for fiscal 2006, bringing the company's total revenue to a record $8.8bn and sales of beauty products increased in line with overall growth (+8% for $6.029bn). Net income amounted to $478m (-44%). These results are all the more impressive given Avon's considerable restructuring costs. The company was impacted by $81m incremental costs from its product simplification programme and $229m in restructuring costs.
The company reports that it spent 83% more on advertising in 2006 than in 2005 ($249m).
“As we move into 2007, we are still in the early stages of our multi-year turnaround,” commented Andrea Jung, chairman and ceo. “ We are confident that our plan is the right one and we remain committed to restoring Avon to sustainable growth.”
Avon has reported an 8% rise in revenue for fiscal 2006, bringing the company's total revenue to a record $8.8bn and sales of beauty products increased in line with overall growth (+8% for $6.029bn). Net income amounted to $478m (-44%). These results are all the more impressive given Avon's considerable restructuring costs. The company was impacted by $81m incremental costs from its product simplification programme and $229m in restructuring costs.
The company reports that it spent 83% more on advertising in 2006 than in 2005 ($249m).
“As we move into 2007, we are still in the early stages of our multi-year turnaround,” commented Andrea Jung, chairman and ceo. “ We are confident that our plan is the right one and we remain committed to restoring Avon to sustainable growth.”