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Avon Reports Financials for Q3 2010

Posted: October 28, 2010

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In Central & Eastern Europe, third-quarter revenue declined 1% year over year, but rose 2% in constant dollars. Russia was up 6% on a reported basis and up 4% in constant dollars. The region's Active Representatives grew 3% and units sold were flat in the quarter.

Western Europe, Middle East & Africa's third-quarter revenue increased 11% versus the prior-year quarter or 16% on a constant dollar basis. The strength was driven by growth in Active Representatives as well as the acquisition of Liz Earle Beauty Co. Limited, which contributed approximately 4 percentage points to revenue growth. On a reported basis, Turkey rose 13%, South Africa rose 73% and the U.K. was down 3%. The region's constant dollar revenue increase was due to a 15% increase in Turkey, 63% increase in South Africa, and a 1% increase in the U.K. The region's Active Representatives grew 14% year over year and units sold increased 5%.

Asia-Pacific's third-quarter revenue increased 3% year over year, but declined 4% in constant dollars. Strong growth of 13%, or 7% in constant dollars, in the Philippines offset continued weakness in Japan. The region's Active Representatives and units sold were each up by 2%.

Third-quarter revenue in China decreased 30% year over year, or down 31% in constant dollars. Units sold decreased 28% and Active Representatives were down 36%. The region's revenues continued to be impacted by the company's deliberate transition away from a hybrid model to one which focuses on direct selling. China had an operating loss of $3 million compared with $3 million in profit in last year's third quarter.

Click here for Avon's full third quarter 2010 financial report.