Revlon’s Sales Rise in Second Quarter

Operating income was $47.8 million compared to $47.3 million in the same period during 2010.

“In the second quarter of 2011, consistent with our strategy of driving profitable growth, we delivered top line growth of 4%, while supporting our brands at appropriate levels and maintaining competitive operating margins,” said Revlon president and CEO Alan T. Ennis. “From a marketplace perspective, we introduced successful, innovative, high-quality, consumer-preferred products into the global marketplace, and our acquisition of Sinful Colors is transitioning well and performing to expectations. In the quarter, we improved our capital structure by refinancing our bank credit facilities, reducing the interest rates on our debt and extending maturities.”

In the US net sales in the second quarter of 2011 were $194.9 million, an increase of $15.6 million, or 8.7%, compared to $179.3 million in the same period last year. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics.

In Asia Pacific, net sales in the second quarter of 2011 were $58.5 million, an increase of $9.8 million, or 20.1%, compared to $48.7 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $4.2 million, or 8.6%, due to higher net sales of Revlon color cosmetics in China, Australia and certain distributor markets.

In Europe, Middle East and Africa, net sales in the second quarter of 2011 were $52.0 million, an increase of $1.8 million, or 3.6%, compared to $50.2 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $3.4 million, or 6.8%, primarily due to lower net sales of Revlon color cosmetics in the U.K. and Italy, and lower net sales in certain distributor markets.

In Latin America, net sales in the second quarter of 2011 were $26.3 million, a decrease of $2.4 million, or 8.4%, compared to $28.7 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations (including the unfavorable impact of the April 2011 change in the exchange rate of Venezuela’s local currency relative to the U.S. dollar noted below), net sales in Latin America decreased $1.0 million, or 3.5%. The decrease was primarily due to lower net sales in Mexico, Venezuela and certain distributor markets which were partially offset by higher net sales in Argentina.

As a result of the fire that destroyed the company’s facility in Venezuela, the company has not recorded any net sales in Venezuela since early June 2011. During the second quarter of 2011, lower net sales in Venezuela as a result of the fire were largely offset by higher selling prices in Venezuela given market conditions and inflation, as compared to the same period last year.

In Canada, net sales in the second quarter of 2011 were $19.5 million, a decrease of $1.3 million, or 6.3%, compared to $20.8 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $2.4 million, or 11.5%, primarily due to lower net sales of Revlon color cosmetics.