Avon Q1 revenue up 7%
Beauty growth driven by fragrance sales
Avon Products Inc has reported total revenue of $2.6bn for the first quarter of 2011, an increase of 7% on the prior year period, despite a 1% decline in total units sold. The company’s beauty business registered a strong performance with sales increasing 8% year on year. Here results were boosted by Avon’s fragrance sector, which grew 10%. Operating profit was up 29% compared with the year ago quarter at $247m.
Regionally, Latin America proved Avon’s fastest growing market with first quarter revenue up 16%. In Asia, Avon’s sales declined 6% largely due to a 31% decline in China – a result of the company’s continued transition from a hybrid to direct selling model in the country.
Meanwhile, $14m saved on advertising spend was offset by extensive investment by Avon in representative value proposition, including sales leadership, higher incentives and service model transformation.