President and CEO Garcia says he is “excited” to have joined Revlon during period of renewed growth
Revlon has reported net sales of $439.6m for the first quarter of 2016, up 0.3% or 3.6% on a like-for-like basis on the prior year quarter.
Total reported net income was $11m including the impact of $2.1m of non-operating and unusual items. Excluding these items, adjusted net income was $13.1m, up $12.5m on the prior year quarter.
In the consumer segment, which includes brands such as Cutex, ColorSilk and SinfulColors, Revlon generated net sales of $320m, down 1.3% on Q1 2015, although this was up 2.5% on a like-for-like basis. Higher net sales of Mitchum anti-perspirant deodorants and the above three mentioned brands were said to fuel this category, although Revlon’s own colour cosmetics net sales were said to be lower “mainly as a result of inventory reduction efforts by certain customers in the US”. Overall, consumer profit declined 4.7%.
In the professional segment, Revlon generated net sales of $115.1m, which were up 2.7% on a like-for-like basis on Q1 2015. American Crew and Creme of Nature were pulled out as key growth drivers here, making up for the poorer sales performance of CND nail products, primarily in Russia. Profit in the professional segment was roughly flat, excluding a $3m one-time gain due to the sale of non-core professional brands.
Revlon’s other primary source of gains – its CBBeauty business – generated $4.5m in net sales in Q1 2016. Revlon acquired CBBeauty in May 2015, so there are no comparable results. CBBeauty is the distributor and marketer behind boy band One Direction’s fragrance and beauty products. The acquisition included the takeover of UK distributor SAS & Company.
Revlon President and Chief Executive Officer, Fabian Garcia, said “I am excited to have joined Revlon during a period of renewed growth and innovation. The company began 2016 with a solid start, growing top line net sales by 3.6% on an XFX basis. Growth in International Consumer and US Professional net sales was especially strong at 7.5%, on an XFX basis, and 10.3%, respectively. While US Consumer net sales decreased slightly by 0.5%, consumption remained strong and we gained share during the quarter. We will continue to execute our value creation strategy with a strong focus on innovation, driving the company to even greater success.”