Revlon reports sales increases, wider losses to end fiscal 2016

By

Obi Anyanwu

Published
Mar 3, 2017

Revlon on Friday posted its financial results for the fourth quarter and fiscal 2016. As reported net sales for the year increased 21.9% to $2,334.0 million, but adjusted net sales and Pro Forma adjusted net sales decreased to $2,858.9 million from $2,863.5 million and $2,876.5 million, respectively.

 
Revlon President and Chief Executive Officer, Fabian Garcia, said, “I am encouraged by the progress we have made since the acquisition of Elizabeth Arden, and enthusiastic about the opportunities presented by our newly combined company’s enhanced portfolio of brands, size, scale, profitability and international growth momentum. On a Pro Forma, XFX basis, our Company grew net sales 1.4% for 2016 and increased Pro Forma Adjusted EBITDA 9.7% over last year. These promising results were achieved despite foreign currency and macroeconomic challenges, and while managing significant organizational change.”
 
Consumer segment net sales increased 0.7% over the previous year, and the professional and Elizabeth Arden segments increased 2.4% and 1.8%, respectively. The professional segment was positively impacted by an increase in sales for the American Crew grooming products.

Elizabeth Arden Pro Forma segment profit increased 46.3%, which offset profit decreases of 2.3% for the consumer segment and 3.4% for the professional segment.
 
The international business performed well in all segments on a Pro Forma basis, offsetting decreases across the board in North America. In addition, fourth quarter net sales increased to $800.7 million on an as reported basic compared to $521.9 million.
 
As reported net income for the year was a loss of $21.9 million and a loss of $36.5 million in the fourth quarter.
 
Garcia commented, “All of our segments posted robust International constant currency net sales growth in 2016; while we faced some specific challenges in North America, as U.S. mass retailers were impacted by beauty consumption shifting to specialty and online channels, particularly during the year-end holiday season. Our strategy to drive long-term growth continues to focus on strengthening our iconic brands, continuing to build distribution in high growth channels, accelerating innovation and enhancing our digital capabilities.”