Revlon sales steady as net profits rise on cost savings
Net sales were down from $357.1m to $350.1m, a decrease of 2 percent, while this figure was impacted negatively by currency translations to the sum of $6.4m, which meant the results were essentially level compared to the same period last year.
The company said that the sales were negatively impacted by a slower performance in the Venezuela market, while lower net sales of Almay color cosmetics were also reported, a result that was counterbalanced by a stronger performance by SinfulColors color cosmetics and the inclusion of Pure Ice.
The company acquired the nail enamel business from Bari Cosmetics last year along with the Bon Bons cosmetics in a $22m deal in July of last year.
Struggling against currency translation
For the first six months of the year, net sales fell from $687.8m to $682.0m, which was impacted by negative currency translations by about $12.3m, while net income fell slightly from $19.6m to $17.8m.
“Our net sales in the second quarter of 2013 were essentially unchanged year-over-year as we benefited from the inclusion of our Pure Ice acquisition offset by continued softness in our Almay brand and the negative impact of business conditions in Venezuela,” said Revlon president and CEO, Alan Ennis.
Net income was $24.7m compared to $11.1m, a figure that was largely impacted by an $18.1m insurance pay out that was related to a 2011 fire at its Venezuela warehouse.
Sales held back by Latin America and Canada region
During the second quarter sales were essentially flat in all regions, except Latin America and Canada, where the performance was held back by currency restrictions in Venezuela.
In the mainstay US market net sales in the quarter were level with the previous year at $203.9m, with higher Sinful Colors sales and the inclusion of Pure Ice being offset by lower sales of Revlon and Almay.
In the Asia Pacific region, sales were down by 2.7 percent $54.3m, which was essentially unchanged when factoring in negative currency translations.
Asia Pacific see higher sales in Japan and Australia
The performance in this region was boosted by higher sales of Revlon color cosmetics in Japan, Sinful Colors in Australia and negatively impacted by lower sales of Revlon color cosmetics in China and lower sales of beauty care products in Hong Kong.
In Europe, Middle East and Africa net sales fell by 3.8 percent to $42.7m, a figure that was significantly impacted by negative currency translations, but balanced off by higher sales in the UK and Italy.
In Latin America and Canada sales were down 7.2 percent to $49.2m, a figure that was impacted by both currency translations and the devaluation of the currency in Venezuela.
