02.11.16
Avon Products, Inc. reported fourth-quarter and full-year 2015 results. For the quarter, total revenue for Avon Products, Inc. declined 20% to $1.6 billion, but increased 3% in constant dollars excluding the divestiture of Liz Earle. In addition, the year-over-year comparison is impacted by certain tax items in Brazil discussed further in the Latin America section of the regional highlights.
Active Representatives were up 2% year over year, as increases in Europe, Middle East & Africa were partially offset by declines in the Latin America markets experiencing high inflation. Beauty sales declined 21%.
For the full fiscal year 2015, total revenue slipped 19% to $6.2 billion. Active Representatives and average order were both up 1% year over year. Price/mix was up 4%, while total units decreased 2%. Beauty sales declined 20%.
"Our operating performance for the fourth quarter and fiscal year was in-line with our most recent outlook. Looking back at 2015, our key local markets drove steady improvement in overall performance. Importantly, we improved year-on-year Active Representative trends – with full-year growth of 1%," said Sheri McCoy, chief executive officer of Avon Products, Inc. "We are on track to close our partnership with Cerberus and fully engaged in executing our transformation plan."
In January 2016, the company announced a Transformation Plan, which includes cost reductions in an effort to continue to improve its cost structure and to enable Avon to reinvest in growth. As a result of this plan, the Company expects pre-tax annualized cost savings of approximately $350 million after three years, with an estimated $200 million from supply chain reductions and an estimated $150 million from other cost cuts.
Active Representatives were up 2% year over year, as increases in Europe, Middle East & Africa were partially offset by declines in the Latin America markets experiencing high inflation. Beauty sales declined 21%.
For the full fiscal year 2015, total revenue slipped 19% to $6.2 billion. Active Representatives and average order were both up 1% year over year. Price/mix was up 4%, while total units decreased 2%. Beauty sales declined 20%.
"Our operating performance for the fourth quarter and fiscal year was in-line with our most recent outlook. Looking back at 2015, our key local markets drove steady improvement in overall performance. Importantly, we improved year-on-year Active Representative trends – with full-year growth of 1%," said Sheri McCoy, chief executive officer of Avon Products, Inc. "We are on track to close our partnership with Cerberus and fully engaged in executing our transformation plan."
In January 2016, the company announced a Transformation Plan, which includes cost reductions in an effort to continue to improve its cost structure and to enable Avon to reinvest in growth. As a result of this plan, the Company expects pre-tax annualized cost savings of approximately $350 million after three years, with an estimated $200 million from supply chain reductions and an estimated $150 million from other cost cuts.