Adjusted net sales grew 4.7%
Revlon’s President and CEO Lorenzo Delpani has lauded the company’s latest set of financial results.
It was a busy quarter for the US beauty giant, which completed its acquisition of the CBBeauty Group – the distributor of fragrance and beauty brands including boy band One Direction’s line – and exited its business operations in Venezuela, moving instead to a distributor model. Net sales for Revlon in Q2 2015 were $482.4m, down on the same period in 2014 when net sales hit $497.9m. This decrease was largely put down to the company’s exit from Venezuela, which took with it any sales that the region was contributing (in 2014, Venezuela generated $8.3m).
Total company EBITDA was $85.9m in Q2 2015, compared with $88.6m in Q2 2014. Net income stood at $26m in the second quarter, up from the $18.1m made in 2014.
Delpani said: “This quarter was strong, with adjusted net sales growth of 4.7% and adjusted EBITDA growth of 6.5%, measured on an XFX basis and adjusted for comparability.” Looking at the consumer segment, net sales were down on 2014, at $354.7m, although net sales grew 1.4%, “primarily driven by higher net sales of Almay colour cosmetics and Revlon colour cosmetics, partially offset by lower net sales of SinfulColors colour cosmetics”, the company noted. Consumer segment profit was up from $80.3m in 2014, to $83.8m in Q2 of 2015.
While business was looking rosy in consumer, the professional segment looked a little more dicey, with net sales dipping down to $123.4m in Q2 2015, compared with $130.6m in Q2 2014. On a constant currency basis, net sales grew 4.1% “primarily due to higher net sales of American Crew and Revlon Professional products”.
However, overall profit in this segment decreased 21.3% in the quarter, which Revlon in a release largely put down to “$7m of higher brand support expenses for the company’s professional brands”.