Revlon reported a big jump in its fourth quarter sales and net income on the back of a strong performance in hair color and make-up for both the US and Latin America, as well as acquisitions.
Net sales were up 9 percent to $391.3m, compared to $359.8m, a rise that was attributed to particularly strong sales throughout the Americas, specifically the US and Latin America.
The rise in net sales was also attributable to the addition of the Pure Ice cosmetics business, which the company completely in July of last year, together with the SinfulColors brand.
Americas sales help offset European performance
The results in these markets helped to offset declines in market share and sales in the Europe, Middle East & Africa region, which were mainly attributable to economic problems in Europe, and more specifically southern European countries.
In the US sales increased by 14.4 percent to $219.2m during the quarter, driven by Revlon color cosmetics and Revlon ColorSilk hair color, which in Asia Pacific sales increased 3.6 percent to $66.1m.
In Europe, Middle East & Africa market, sales fell by 9.8 percent to $50.4m, a figure that was impacted by currency exchange as well as lower net sales of fragrances in Europe.
Full year profit impacted by restructuring
For the full year, net sales were up by 3.2 percent, from $1.38bn, to $1.43bn, a figure that was impacted by the unfavorable impact of foreign currencies, which totaled $21.1m and otherwise would have seen sales increase by 4.8 percent.
Latin America and Canada have now been combined as one market for the first time during the second quarter, with sales for the period showing an increase of 14.6 percent to $55.6m, a figure that was primarily driven by sales of Revlon color cosmetics and other beauty products in markets such as Venezuela and Argentina.
The company said that net income for the fourth quarter rose by 28 percent to $46.5m, compared to $36.4m in the corresponding period last year. For the full year, net income was down from $53.4m, to $51.1m, which related to restructuring charges of $24.1m.
Innovation proves key to retaining market share
“2012 was a very positive year. We delivered top line growth of almost 5 percent, reflecting the effectiveness of our strategy,” said Revlon President and Chief Executive Officer, Alan Ennis.
“From a marketplace perspective, we introduced new, innovative products, which, together with effective brand communication and strong in-store execution, drove positive performance of our Revlon branded products in many of our key regions.”