Cosmetics giant Revlon has seen its debts soar to the highest ever since January last year.
According to Bloomberg, the Elizabeth Arden owner has been trying to rework its balance sheet, and saw its 6.25% senior unsecured bonds rise more than 5 cents to the dollar, to a high of 47.25 cents yesterday.
Revlon, helmed by Debra Perelman, has also refinanced its debt with a US$130m asset-based lending facility.
Around $450m of Revlon’s notes are outstanding, with the next payment said to be due in July.
Last month, Revlon revealed its net sales for Q1 were down by $8m, a 1.8% dip; however, Elizabeth Arden and its fragrance sectors reported double-digit growth as the cosmetics maker sees a bounceback following the pandemic.
Operating loss stands at $12.7m for the three months ended 31 March, compared to a $186.2m loss the year before, driven mainly by lower impairment charges, said Revlon.
“I am pleased with the continued sequential improvement in our business as we continue to recover from Covid-19 while benefiting from the exhaustive restructuring strategies we first implemented in 2018,” said Perelman at the time.
“As markets around the world continue to reopen and Covid-19 restrictions loosen, we are optimistic around the rebound of the mass channel, and particularly the colour cosmetics category.
“Our e-commerce channel continues to experience growth and to increase as a percentage of our net sales, and our adjusted EBITDA margin, grew 240 basis points,” she added.
Back in March, it was reported that Revlon’s recovery from the pandemic was in jeopardy following a 21% dip in sales for 2020.
Net sales were down $515m for the year, compared with 2019, which it blamed primarily on the pandemic.
