Top Companies Report

17. Revlon

July 11, 2011

New York, NY

212.527.4000

www.revlon.com

Sales: $1.3 billion


Sales:

$1.3 billion. Net income: $66.7 million.


Key Personnel:

David L. Kennedy, vice chairman; Alan T. Ennis, president and chief executive officer; Chris Elshaw, executive vice president and chief operating officer; Steven Berns, executive vice president and chief financial officer; Julia Goldin, executive vice president, global chief marketing officer; Robert K. Kretzman, executive vice president and chief administrative officer; Alan Meyers, executive vice president and chief science officer; Manuel Blanco, senior vice president and managing director, Latin America region; John Collier, senior vice president and general manager, US; Arthur Franson, senior vice president, global supply chain and manufacturing; David Teasdale, senior vice president and managing director, Asia Pacific; Mark Wood, senior vice president and managing director, Europe, Middle East and Africa; Simon Worraker, senior vice president and general manager, Canada.

 

Major Products:

Cosmetics, women’s hair color, beauty tools, fragrances, skin care, antiperspirants/deodorants and personal care products marketed under such names at Revlon, Almay, ColorSilk, Mitchum, Charlie, Gatineau and Ultima II.


New Products:

Skin care—Age Defying with DNA Advantage Cream Makeup; Color cosmetics—Grow Luscious Plumping Mascara and Lash Liner, Colorstay Aqua Mineral Finishing Powder, Summer Romantics collection, Sinful Colors (acquisition).


Comments:

Sales rose 2% to $1.3 billion and net income increased more than 36% last year. The company credited the gains to higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color, which were partially offset by lower net sales of Almay color cosmetics and Mitchum antiperspirant deodorant. As previously disclosed, effective for periods beginning Jan. 1, 2010, the company reports Canada separately and reports South Africa as part of the Europe, Middle East and Africa region. As a result, prior year quarterly and year to date amounts have been reclassified.


In the US, net sales declined 2.5% to $729.1 million, due primarily to lower net sales of Almay color cosmetics, Revlon ColorSilk hair color and Mitchum antiperspirant deodorant, partially offset by higher net sales of Revlon color cosmetics. Net sales of color cosmetics benefitted from lower promotional allowances as the company continued to optimize its brand support mix, and also benefitted from lower returns.


In Asia Pacific, net sales rose 11% to $209.9 million. Excluding the favorable impact of foreign currency fluctuations, net sales increased $6.0 million, or 3.2%. Higher net sales of Revlon color cosmetics, Revlon ColorSilk hair color and other beauty care products in the region were partially offset by lower net sales of Revlon color cosmetics in Australia and Japan.


In Europe, Middle East and Africa, net sales increased 9% to $200.4 million. The increase was primarily due to higher net sales of fragrances throughout the region as well as higher net sales of color cosmetics and other beauty care products in South Africa.


In Latin America, net sales fell about 1% to $107.9 million, due primarily to currency fluctuations. Excluding fluctuations, Latin American sales rose 29.5% due to sales of Revlon ColorSilk hair color, Revlon color cosmetics and other beauty care products in both Venezuela and certain distributor markets.


In Canada, net sales increased nearly 12% to $74.1 million. Excluding the favorable impact of foreign currency fluctuations, net sales in Canada increased $1.4 million, or 2.1%. The increase was primarily driven by higher net sales of Revlon color cosmetics, which were partially offset by lower net sales of Revlon beauty tools.


For the first quarter of 2011, net sales rose 9.1% to $333.2 million. The increase was primarily due to higher net sales of Revlon color cosmetics, as well as Almay color cosmetics, fragrances, and other beauty care products, which were partially offset by lower net sales of Revlon ColorSilk hair color.


In the US, net sales increased 2.3% to $186.2 million. The increase was driven primarily by higher net sales of Revlon and Almay color cosmetics, which were partially offset by lower net sales of Revlon ColorSilk hair color. Net sales of Revlon color cosmetics increased in part due to lower promotional allowances as compared to the first quarter of 2010.


In Asia Pacific, net sales increased 15.7% to $53.1 million, primarily due to higher net sales of Revlon color cosmetics in China and certain distributor markets.


In Europe, Middle East and Africa, sales increased 15.9% to $49.7 million, thanks to higher net sales of Revlon color cosmetics, Mitchum antiperspirant deodorant and fragrances in the UK and South Africa.


In Latin America, sales rose 35% to $27.0 million, on the strength of higher sales of Revlon color cosmetics, Almay color cosmetics, Revlon ColorSilk hair color and other beauty care products. Finally, in Canada, sales increased 17.8% to $17.2 million, primarily due to higher net sales of Revlon color cosmetics.


Net income soared more than 400%, to $10.4 million, compared to $2.2 million a year ago.


Last month, a fire destroyed a substantial portion of Revlon facility in Venezuela. At press time, the company was evaluating the extent of the damage and the impact on its business in the Latin America region. During 2010, the company’s subsidiary in Venezuela had net sales of approximately 3% of the company’s consolidated net sales and its total assets were approximately 3% of the company’s total assets. Revlon’s net sales in Venezuela are comprised of locally manufactured product as well as product imported from its Oxford, NC facility.

Related End-User Markets:

  • Cos Bar: Turning 40 and Hitting Fast Forward

    Cos Bar: Turning 40 and Hitting Fast Forward

    Christine Esposito, Associate Editor||November 21, 2016
    With a recent investor infusion, a new CEO and rebranding effort underway, this luxury beauty retailer has big plans.

  • Organic Matter

    Organic Matter

    Christine Esposito, Associate Editor||November 14, 2016
    FTC and USDA hold a public roundtable to discuss consumers’ perception of organic claims.

  • Get Ready, ‘Cause Here it Comes…

    Get Ready, ‘Cause Here it Comes…

    Christine Esposito, Associate Editor||November 1, 2016
    Skinphonic is a new brand created with a team of beauty experts and fronted by singer Smokey Robinson.

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna , Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • Perform or Perish

    Perform or Perish

    Christine Esposito, Associate Editor||December 1, 2016
    Success in today’s skin care sector begins with active ingredients, formulated in products that address modern-day issues.

  • New and Noteworthy:  Fine Fragrance Roundup  for Fall 2016

    New and Noteworthy: Fine Fragrance Roundup for Fall 2016

    Melissa Meisel, Associate Editor||November 2, 2016
    Check out the latest launches in fragrance this season.

  • Soap Opera

    Soap Opera

    Christine Esposito, Associate Editor||November 2, 2016
    FDA’s recent antibacterial ruling has soap sector stakeholders scrambling to keep some ingredients in their formulation kit.

  • A-Okay!

    A-Okay!

    Imogen Matthews, For In-Cosmetics||November 2, 2016
    K-Beauty influences cosmetic development around the world.

  • Next Gen  Antiseptics

    Next Gen Antiseptics

    Emily Kalal and Katherine S. Maka, RITA Corporation||November 2, 2016
    RITA researchers detail the benefits of 0.75% chlorhexidine gluconate (CHG) antiseptic handwash

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.

  • Works of Art

    Works of Art

    Tom Branna, Editorial Director||August 1, 2016
    These suppliers know that the container can be just as important as the juice to entice luxury shoppers.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • For the Love of Lipids

    For the Love of Lipids

    Tom Branna, Editorial Director||June 1, 2016
    AOCS and SCC to deliver a program geared to cosmetic chemists of the important role that fats and oils play in a healthy skin

  • April in Paris

    April in Paris

    Tom Branna, Editorial Director||June 1, 2016
    In-Cosmetics sets attendance record in its return to the City of Light.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.