Revlon's sales got a lift from an old friend last year. The beleagured cosmetics maker, which has seen its sales and market share erode for years on the whims of its chairman Ron Perelman, reported 2013 sales rose 13% to nearly $1.5 billion. The addition of The Colomer Group, which Revlon reacquired in October, added nearly $117 million to sales. Without that acquisition, sales would have declined 1.3%. In December, Revlon said it was exiting business operations in China, which represented approximately 1% of total company net sales in 2013.
"We successfully completed our transformational acquisition of The Colomer Group on October 9, 2013, reuniting the global Revlon brand and expanding Revlon back into the professional channel," explained Lorenzo Delpani, president and chief executive office, Revlon. "Since the acquisition, we have taken further actions to strategically move the combined business forward. We finalized our integration plan, announced our plans to realize annualized cost reductions related to integrating TCG of up to $35 million by the end of 2015, and began to take actions to achieve these benefits."
Going forward, Revlon's primary focus for 2014 will be the successful execution of these cost-saving programs to achieve the combined synergies, according to Delpani.
Taking a closer look at 2013 sales by region, US sales increased 0.1% to $800.4 million. Lower net sales of Almay color cosmetics were offset by higher net sales of SinfulColors color cosmetics, Revlon Beauty Tools, Revlon ColorSilk hair color, as well as the inclusion of a full year of Pure Ice net sales.
Sales in Asia-Pacific fell 2.2% to $204.5 million. Higher net sales of Revlon color cosmetics in Japan and Revlon and SinfulColors color cosmetics in Australia were partially offset by lower net sales of other beauty care products in Hong Kong.
Latin America and Canada net sales decreased 5.0% to $192.8 million. Net sales in the region were negatively impacted by $12.7 million of lower net sales in Venezuela. Excluding Venezuela, net sales increased primarily due to higher net sales of Revlon color cosmetics in Argentina, Mexico and certain distributor territories, as well as other beauty care products in Argentina and certain distributor territories. Net sales in Argentina benefited from higher selling prices resulting from market conditions and inflation. These increases were partially offset by lower net sales of Revlon and Almay color cosmetics in Canada.
Europe, Middle East and Africa net sales decreased 2.3% to $180.2 million. The company reported higher net sales of Revlon color cosmetics in the UK and certain distributor territories, fragrances in Italy and South Africa, and other beauty care products in South Africa. Net sales also benefited from higher net sales of SinfulColors in the UK These increases in net sales were offset by lower net sales of other beauty care products in France.
Net sales in the company's professional segment, which represents the business lines acquired in the TCG acquisition, from the TCG Acquisition Date, were $116.8 million. The professional segment includes brands such as Revlon Professional in hair color, hair care and hair treatments; CND in nail polishes and enhancements, including CND Shellac and CND Vinylux nail polishes; and American Crew men's grooming products. On a pro forma basis for the full year 2013, professional segment net sales would have been approximately $531 million.