Revlon hits $482.4 million in 2Q15 net sales

REVLON has recently reported net sales for the second quarter of 2015 hit $482.4 million, lower than the figure for the same period last year of $497.9 million.

The dip in the period-over-period results is a reflection of the company’s exit of business operations in Venezuela. The country did not generate sales for the second quarter of 2015 as opposed to $8.3 million reported for the second quarter of 2014.

The company’s total adjusted net sales for the second quarter of 2015, excluding Venezuela, was $482.4 million, 1.5% lower than the $489.6 million achieved during the same period in 2014. Without the $30.2 million impact of foreign currency fluctuations, adjusted net sales was at $23.0 million or 4.7%.  

The reported net income for the second quarter of this year was $26.0 million, with the adjusted net income at $29.0 million. The corresponding values for the same quarter last year were $18.1 million and $21.8 million, respectively, indicating a 33% or $7.2 million increase in adjusted net income over the two periods.

2015 second quarter consumer segment net sales dropped to $354.7 million from $367.3 million in 2014. The company’s exit from Venezuela and shift to a distributor model resulted in zero Venezuela sales for the period as opposed to $8.3 million in net sales in 2014, which impacted consumer segment net sales negatively. On an XFX basis, however, consumer segment net sales this second quarter rose by 1.4% on the back of higher Almay color cosmetics and Revlon color cosmetics net sales and despite being offset by lower net sales of SinfulColors color cosmetics. The figure would have posted a 3.7% increase without the Venezuela factor.

Revlon achieved $123.4 million in professional segment net sales for the second quarter of 2015, lower than $130.6 million achieved in the second quarter of 2014. The former rose by 4.1% on an XFX basis, nevertheless, because of the better net sales of the American Crew and Revlon Professional products.

Lorenzo Delpani, Revlon president and CEO, noted the company’s healthy market performance for the quarter.

“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. During this quarter, we completed our acquisition of the CBBeauty Group and exited our business operations in Venezuela, moving to a distributor model. We also continued to execute our Strategy of Value Creation, investing $14.7 million of planned incremental brand support in the second quarter of 2015. The 6.5% Adjusted EBITDA growth includes this incremental brand support investment,” he stated.