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Avon's Fiscal 2011 Up Despite Declines in Q4
Posted: February 14, 2012
Avon Products, Inc. reported that total revenue for fiscal 2011 reached $11.3 billion, an increase of 4% over 2010. Operating profit, at $855 million, decreased 20%.
"Despite a challenging fourth quarter, 2011 revenue was up," said Andrea Jung, chairman and CEO, Avon. "While 2012 is a year of transition and we are not planning for margin recovery, our priorities are to improve top-line performance, cost management and cash generation. As previously announced, the company is conducting an operational and financial assessment of the business [news of which will be reported when a new CEO is in place]."
In the fourth quarter, Latin America revenue was up 2% year over year, or up 6% in constant dollars. Brazil was down 6%, or down 1% in constant dollars. Strong growth continued in Mexico, which was up 2%, or up 12% in constant dollars. Fourth-quarter revenue in North America was down 7% on both a reported and constant-dollar basis. Avon's core U.S. business was down 5%, as recent product portfolio enhancements of giftables and smart-value offerings within beauty resulted in positive average order growth for the quarter
Western Europe, Middle East & Africa's fourth-quarter revenue decreased 9%. The region's results reflect continued weakness in macroeconomic conditions. Asia Pacific's fourth-quarter revenue was down 6% year over year. The region's active representatives and units sold declined 7% and 6%, respectively. Operating profit was down 24%.