Revlon revenues down, profit loss widens
Revlon Inc. announced late on Thursday that profit losses widened in 2017, impacted by costs to integrate the Elizabeth Arden business, as the New York beauty firm saw total revenues dip slightly in the final quarter.
For the last quarter ended December 31, 2017, Revlon swung to a $76.9 million loss, after reporting a $36.5 million loss in the prior-year period. Global sales fell to $786.6 million, a decrease of 1.8%, "primarily driven by net sales declines in North America, partially offset by international growth within the Elizabeth Arden segment," said the American beauty firm, in a statement.
Elizabeth Arden, Revlon's recent prestigious beauty addition, relished in a 2.3 percent sale rise to $313.2 million -- pushed on by a 20.7% gain internationally -- while Revlon's consumer and professional segments both witnessed declines, down 3.2 percent to $355.7 million, and 6.3 percent to $111.8 million, respectively.
Revlon said Adjusted EBITDA was $112.0 million, representing a 24.8% decrease, while operating income reached $21.0 million, compared to $25.4 million last year.
For the full-year, sales increased to $2,693.7 million, an increase of 15.4%. But the uptick failed to offset profit losses, down $183.2 million in 2017, compared to $21.9 million in 2016.
Remaining positive following the impact of Elizabeth Arden on profits, Revlon said it continued to accelerate the realisation of synergies and cost reductions on the restructuring and integration of Elizabeth Arden, delivering $69 million of synergies and cost reductions for the year.
Revlon has undergone big changes in recent months. In January, Revlon's CEO, Fabian Garcia, departed from his duties, making way for Paul Meister, who was previously serving as a member of Revlon’s Board of Directors.
Garcia, who served in the role for two years, spearheaded Revlon's aggressive turnaround effort, including the acquisition of Elizabeth Arden.
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