Revlon hit by sales dip and refinancing costs
Net sales down 2.2% in first quarter, while net income slides from $12.7m to $2.2m
Revlon Inc today announced its results for the quarter ended 31 March. Net sales were $305.5m compared to $303.3m in the same period of 2009, but excluding the favourable impact of foreign currency fluctuations net sales actually declined 2.2%.
The company enjoyed a double-digit increase in net sales in Asia Pacific (up 10.3% to $45.9m) and in the EMEA region (up 12% o $42.9%), but fared less well in the Americas. US net sales in the quarter amounted to $182.1m, a decrease of 4.7%. In addition, net sales in Latin America increased only 2.6% to $20m. According to Revlon, this was due to the impact of the January 2010 devaluation of Venezuela’s local currency relative to the US dollar. Excluding this, Revlon’s net set sales in Latin America increased 29.7%.
Meanwhile, net income in the first quarter of 2010 was £2.2m, compared to $12.7m in the prior year period. This figure, says Revlon, takes into account the $9.7m worth of expenses associated with the company’s March 2010 refinancing which saw Revlon’s wholly owned operating subsidiary, Revlon Consumer Products Corporation, refinance its $815m term loan facility with a five-year $800m term loan facility, due in March 2015, and its $160m revolving credit facility with a four-year $140m asset-based facility, due in March 2014.