Beauty Sales Rise 8% at Avon

Avon Products, Inc. reported third-quarter 2011 total revenue rose 6% to $2.8 billion. Beauty sales increased 8%, with gains in all categories; fragrance, color, personal care and skin care grew 12%, 9%, 6%, and 2%, respectively. Active representatives were flat in the quarter.

By region, third quarter revenue in North America was down 7%. Active representatives were down 9% and units sold declined 8% compared with a year ago, according to the company.

In Central & Eastern Europe, third-quarter revenue was up 7%. Benefits from improving trends in active representative growth were offset by weaker average order partly due to the increasingly challenging macroeconomic backdrop in the region. Russia’s sales rose 4%, according to the company. Western Europe, Middle East & Africa’s third-quarter revenue increased 9%, with a significant benefit from a Value Added Tax (VAT) settlement in the UK. Turkey declined 6%, while South Africa rose 29%.

Asia Pacific’s third-quarter revenue was up 1%. Revenue in the Philippines increased 2%, while China declined 6%.

Latin America’s third-quarter 2011 revenue was up 11%, as the region’s results were pressured by disruptions in Brazil associated with the Enterprise Resource Planning (ERP) implementation. Strong growth continued in other large markets within Latin America. Mexico was up 17%, driven by balanced growth in active representatives. Venezuela was up 22%.

As previously reported in Happi, Avon recently named Fernando J. Acosta as president, Latin America, effective Dec. 1. He will report to Charles Herington, EVP, developing market group, and serve on Avon’s Executive Committee. Acosta joins Avon after 19 years at Unilever.