Top Companies Report

16. Revlon

July 10, 2013

New York, NY
212.572.4000
www.revlon.com

Sales: $1.4 billion. Net income: $51 million.

Key Personnel: Alan T. Ennis, president and chief executive officer; Steven Berns, executive vice president; Chris Elshaw, executive vice president and chief operating officer.

Major Products: Color cosmetics and skin care products sold under the Revlon and Almay brand names.

New Products: Revlon—PhotoReady BB Cream, ColorStay Ultimate Suede Lipstick, Just Bitten Kissable Balm, Nail Art, Luxurious ColorSilk Buttercream; Almay—Smart Shade Mousse makeup; Pure Ice and Bon Bons (acquisitions).

Comments: Sales rose 3.2% last year, Revlon’s 80th anniversary, driven by higher sales in US, Latin America and Canada and Asia Pacific, partially offset by lower net sales in Europe, Middle East and Africa.

US sales increased 5.6% to nearly $800 million, driven by higher sales of Revlon color cosmetics and Sinful Colors color cosmetics, as well as the inclusion of net sales of Pure Ice color cosmetics beginning in July 2012. The gains were partially offset by lower sales of Almay color cosmetics, the company said.

Sales in Asia-Pacific increased 2.4% to almost $239 million, driven primarily by net sales of Revlon color cosmetics. Gains in Japan were partially offset by a decline in China.

In Europe, the Middle East and Africa, sales fell 11.6% to about $184 million. Sales fell in Italy and France, and rose in South Africa.

Sales in Latin America and Canada increased nearly 12% to $203 million. Revlon color cosmetics, Revlon ColorSilk hair color and Almay color cosmetics.

In 2012, Walmart accounted for 22% of total sales.

For the first quarter of 2013, sales rose less than 1% to nearly $332 million, but the company reported a net loss of $6.9 million, compared to net income of $8.5 million the year before. Higher net sales of Revlon and SinfulColors color cosmetics and the inclusion of the net sales of Pure Ice, partially offset by lower net sales of Almay color cosmetics and Revlon ColorSilk hair color.

US sales increased 4% to $192.1 million during the quarter, driven primarily by higher sales of Revlon and SinfulColors color cosmetics and the inclusion of the net sales of Pure Ice, partially offset by lower net sales of Almay color cosmetics and Revlon ColorSilk hair color.

In Asia Pacific, sales fell 4.5% to $53.6 million, primarily due to lower net sales of Revlon color cosmetics in China, partially offset by higher net sales of Revlon color cosmetics in Japan and the introduction of SinfulColors color cosmetics in Australia.
In Europe, Middle East and Africa, sales fell 11% to $40.7 million, due to lower net sales of both Revlon color cosmetics and other beauty care products in France.

In Latin America and Canada, sales rose 3.2% to $45.5 million due to higher net sales of Revlon color cosmetics throughout the region and higher net sales of other beauty care products in Argentina.

Maybe things are turning around, but when Ron Perelman is your chairman, nothing ever seems quite right. Just last month, Revlon paid $850,000 in penalties after the Securities and Exchange Commission (SEC) charged the company with misleading shareholders in a “going private” transaction.  According to the SEC, in 2009, Revlon’s controlling shareholder, MacAndrews and Forbes (M&F), asked the company to offer shareholders the option to exchange common shares for preferred shares. The exchanged shares would then be provided to M&F to pay down Revlon’s debt. A third-party financial advisor evaluated the adequacy of the plan, but the company did not reveal to shareholders that the advisor deemed the deal inadequate, alleges the SEC.

Despite having one of the best brand names in the business, Revlon remains saddled with debt and that’s proving to be a drag on its valuation. 
blog comments powered by Disqus
  • Long Term Sustainability In the Nonwovens Market

    Long Term Sustainability In the Nonwovens Market

    August 23, 2016
    Learn more at Cleaning Products USA, Nov. 9-11, 2016

  • Fro Yo!

    Fro Yo!

    Tom Branna, Editorial Director||August 22, 2016
    Project Beauty dishes out Hairgurt, a line of vitamin-rich hair shampoos and conditioning masques.

  • TLC for Those Who Need It Most

    TLC for Those Who Need It Most

    Christine Esposito, Associate Editor||August 22, 2016
    New curriculum debuting at Bellus Academy helps estheticians treat a population that needs TLC.

  • The International Top 30 Household and Personal Products Companies

  • 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.

  • Silent Partners

    Silent Partners

    Christine Esposito, Associate Editor||August 1, 2016
    From research & development to logistics to confidentiality, savvy distributors help finished formulators achieve their goals

  • 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.

  • Quaternized Guar Is a Natural Solution

    Quaternized Guar Is a Natural Solution

    Tom Schoenberg, Schoenberg Consulting||July 1, 2016
    The polymer has applications in a range of skin and hair care formulas that does not build up on hair with repeated use

  • The Top 50

    The Top 50

    June 30, 2016
    A look at the biggest US companies in the global household and personal products industry.

  • 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.

  • Salon Selectives

    Salon Selectives

    Tom Branna, Editorial Director||June 1, 2016
    The inside story about what stylists think about the state of the industry and the state of your products and ingredients.

  • New Skin Care Ingredients

    May 13, 2016
    Here is a list of new skin care ingredients available from select suppliers

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • Erasing the Signs of Aging

    Pauline Rouaud-Tinguely, David Boudier, Sylvain Mazalrey, Jenny Laumonier, Isabelle Cruz, Gu00e9raldine Bon, Karine Perrinet, Bu00e9ranger Tassy, Brigitte Closs, Silab R&D, Saint-Viance, France||May 2, 2016
    Silab researchers explain how by acting on the endogenous hyaluronic acid pathway.

  • 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?

  • Boxed Out?

    Boxed Out?

    Tom Branna, Editorial Director||May 2, 2016
    Salon sales outpace mass-market results in the highly competitive, highly fashionable and yes, highly-colorful hair color cat

  • That’s Awesome!

    That’s Awesome!

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

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • The Scalp Microbiome

    The Scalp Microbiome

    Nava Dayan PhD, Dr. Nava Dayan LLC||April 1, 2016
    A review of recent findings and innovative approaches for treating scalp disorders.

  • Multi-Cultural Beauty Update

    Multi-Cultural Beauty Update

    Christine Esposito, Associate Editor||April 1, 2016
    Established brands and start-ups address the needs of multi-cultural beauty consumers.