Revlon see rise in profits on the back of Colomer acquisition

By Simon Pitman

- Last updated on GMT

Revlon see rise in profits on the back of Colomer acquisition

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Revlon is showing some of the first signs of recovery after it posted third quarter results demonstrating that profits had risen on the back of last year’s acquisition of the Colomer professional salon care business.

Net profits for the quarter were up from $9.5 million in the corresponding quarter last year to reach $14.6 million, a figure that was largely driven by the increased sales attributed to the acquisition.

Net sales were up from $333.1m in the same period last year to reach $472.3m, but when adjusting last year’s figures to include the Colomer sales, the figure was slightly down in comparison, with adjusted third quarter sales coming in at $473.9m.

The results were generally below expectations, but shares rallied briefly after the results announcement was made, hitting a peak of $35.26 a share, during trading yesterday.

Sales in the consumer segment down on currency translations

Breaking the figure down, sales in the consumer segment, which do not include the Colomer revenues, were down by 0.9%, from $351.3m to $348.2m.

The company said this fall was largely attributable to foreign currency fluctuations, with the organic sales figures showing that consumer division sales had actually increased by 2% during the period.

Sales were boosted by lower than expected discontinued products, but also dragged down by lower than expected Almay color cosmetic and SinfulColors cosmetics sales, which in turn was partially offset by higher Mitchum brand sales.

Profits for the division were pretty much level with the same period last year, at $25.2m.

The US market trumped overseas market sales

On a regional basis, sales were boosted by a stronger performance in the mainstay US market, with revenues for the quarter up from $234.8m to reach $243.8m, a figure that was mainly driven by $8.8m generated by the lower than expected discontinued products.

On an international basis the results were less favorable, with net sales in the third quarter of 2014 coming in at $228.5 million, compared to $239.1 million in net sales during the third quarter of 2013.

For the results in the nine months of the financial year, total net sales increased from $1.003bn, to $1.440bn, while net income rose from $27.3m to $38.2m.

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