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    Top Companies Report

    11. Avon Products

    ...

    11. Avon Products
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    08.03.18
    United Kingdom
    www.avonproductsinc.com

    Sales: $4.1 billion for cosmetics. Corporate sales: $5.5 billion.

    Key Personnel: Jan Zijderveld, chief executive officer; Jamie Wilson, executive vice president and chief financial officer; Jonathan Myers, executive vice president and chief operating officer; Miguel Fernandez, global president; James Thompson, senior vice president, general counsel and chief ethics and compliance officer; Susan Ormiston, senior vice president, human resources and chief human resources officer.

    Major Products: Cosmetics, fragrances and toiletries.

    New Products: Anew Reversalist Infinite Effects Night treatment cream, Avon True Nutra Effects collection, Avon True Color Flawless Foundation, Mark Big & Style Mascara, Mark Liquid Lip Lacquer, Avon Care Oatmeal collection, Eve Duet, Luminata, Encanto Body Cream and Advanced Techniques Miracle Densifier. To be launched: Avon Life Colour fragrance.

    Comments: New headquarters in the UK means a new home in The International Top 30 for Avon—the 132 year-old company founded by American David H. McConnell. After striking a deal with PE Cerberus in 2015, Avon held on to its international business and left for the UK.

    Sales were flat last year, but a slight decline (-2%) was offset by favorable forex. Avon blamed the dip on lower sales in Brazil, Russia and the United Kingdom, partially offset by growth in Argentina and South Africa.

    By category, skin care sales rose 1% to $1.6 billion, fragrance sales increased 3% to $1.5 billion, but color sales slipped 2% to $977 million. By region, South Latin America led the way with $2.2 billion in sales; followed by Europe, Middle East & Africa ($2.1 billion); North Latin America ($811 million) and Asia Pacific ($518 million).

    Sales in South Latin America rose 4% due to the favorable result of a weaker US dollar relative to the Brazilian real. Sales in Argentina, however, jumped 10%. Sales in EMEA fell 1% due to currency issues, with declines in Russia and the UK that were partially offset by growth in South Africa. Sales in North Latin America, which consists primarily of Mexico, fell 2%. The dip in sales was blamed on the earthquake which hit the country in September, 2017. Sales in Asia Pacific fell 6% due to forex and the exit from Thailand in Q1 2017 and a decline in active representatives in Malaysia.

    For the first quarter of 2018, sales rose 5% to $1.4 billion. Active representatives declined 4%. 
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