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Revlon Reports Nets Sales of $615.2 Million in Fourth Quarter, Full-Year Results

Strong operating income growth reflects Revlon's continued execution against its strategic initiatives amid supply chain challenges.

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By: Lianna Albrizio

Associate Editor

Net sales for Revlon, Inc. were $615.2 million for the fourth quarter ended Dec. 31, 2021.
 
This represents a decrease of $11.4 million, or 1.8% compared to the prior-year period, which was $626.6 million. 
 
Operating income improved $38.9 million, from $67.3 million in the fourth quarter of 2021, compared to $28.4 million the prior-year. 
 
A gross margin improvement of 240 basis points drove the operating income higher. Adjusted operating income in the fourth quarter of 2021 increased by $0.9 million to $75.9 million from roughly $75 million of adjusted operating income in the prior-year period.
 
“Consumer demand for our brands remained strong in the fourth quarter, as evidenced by Revlon Color Cosmetics’ 30% year-over-year retail sales growth in the important US Mass channel,” said Revlon president and CEO Debra Perelman. “While we saw strong consumer demand, we also continued to experience industry-wide supply chain challenges, which impacted our ability to fully meet customer orders to support this consumption. Starting in the third quarter, our business has been impacted by increased prices on key ingredients and components, logistics challenges across all modes of transportation delaying receipt of goods, and persistent labor shortages.”
 
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in the fourth quarter of 2021 was $108.4 million, versus $111.8 million in the prior-year period. As of Dec. 31, 2021, the company had total liquidity of $171.5 million.
 
“We continued to take aggressive action to protect our business by tightly managing our costs and implementing select price increases,” said Perelman. “Further, we rerouted some of our freight, significantly increased labor in our manufacturing facilities, and sourced additional vendors for key materials and components—all resulting in increased manufacturing production levels as we enter 2022. Despite the broader challenges, we were able to drive an improved gross margin and very strong operating income in the fourth quarter. We will continue to dynamically manage our business while remaining focused on executing against our strategy in order to drive long-term profitable growth.”

Full Year 2021 Results
 
Consolidated net sales in the year ended Dec. 31, 2021 were $2,078.7 million, a $174.4 million increase, or 9.2%, compared to $1,904.3 million in the year ended Dec. 31, 2020. Excluding the $44.7 million favorable FX impact, consolidated net sales increased by $129.7 million, or 6.8%, during the year ended Dec. 31, 2021. The XFX net sales increase of $129.7 million in the year ended Dec. 31, 2021 was attributed to a $49.0 million, or 10.6%, increase in Elizabeth Arden segment net sales; a $43.4 million, or 12.4%, increase in the fragrances segment net sales; a $25.6 million, or 3.7%, increase in Revlon segment net sales; and a $11.7 million or 2.9%, increase in portfolio segment net sales.
 
As reported operating income was $103.2 million in 2021, compared to $226.3 million of loss during the prior year. The higher as reported operating income was primarily driven by higher gross profit over the prior-year period; a $144.1 million decrease in impairment charges attributable to the non-cash impairment charges compared to the prior-year period; and a $23.6 million decrease in restructuring charges compared to the prior-year period.
 
Net loss was $206.9 million in 2021, compared to roughly $619 million in the prior year. The lower net loss was driven primarily by a $152.6 million decrease in the provision for income taxes compared to the prior-year period as well as higher as reported operating income.
 
Adjusted EBITDA in 2021 was $292.9 million, compared to $240.1 million in the prior year, an increase of 22.0% versus the prior year, driven primarily by higher as reported operating income.
 

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