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Revlon's Net Sales Rise for Q2 2012

Posted: July 31, 2012

Revlon, Inc. announced results for the second quarter ended June 30, 2012. For Q2 2012 results compared to Q2 2011 results, net sales of $357.1 million compared to $351.2 million, an increase of 1.7%. Excluding unfavorable foreign currency fluctuations of$9 million, second quarter 2012 net sales increased 4.2%. The operating income for Q2 2012 was $42.8 million, which included a net charge of $6.7 million related to estimated costs of resolving previously disclosed pending litigation related to the company’s 2009 exchange offer, compared to $47.8 million. And net income for the quarter was $11.1 million, or $0.21 per diluted share.

Commenting on the results, Revlon president and CEO Alan T. Ennis said, “In the second quarter of 2012, we delivered top line growth of 4.2% and maintained competitive operating margins. From a marketplace perspective, we introduced successful, innovative, high-quality, consumer-preferred products into the marketplace, and, earlier this month, added the Pure Ice brand to our portfolio. We remain focused on delivering on our strategic objective of profitably growing our business.”

The company attributed much of its increase in net sales for the quarter to higher net sales of Revlon and Almay color cosmetics and Revlon ColorSilk hair color.

In the United States, net sales in the second quarter of 2012 were $203.9 million, an increase of $9 million, or 4.6%, compared to $194.9 million in the same period last year. The increase was primarily driven by higher net sales of Revlon color cosmetics.

In Asia Pacific, net sales in the second quarter of 2012 were $55.8 million, a decrease of $2.7 million, or 4.6%, compared to $58.5 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales decreased $1.7 million, or 2.9%, primarily due to lower net sales of Revlon color cosmetics in China and Australia and lower net sales of other beauty care products in Hong Kong. These lower net sales were partially offset by higher net sales of Revlon color cosmetics and Revlon ColorSilk hair color in certain distributor territories.

In Europe, Middle East and Africa, net sales in the second quarter of 2012 were $44.4 million, a decrease of $7.6 million, or 14.6%, compared to $52.0 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales decreased $1.8 million, or 3.5%. Lower net sales of fragrances in the U.K. and certain distributor territories and lower net sales of Revlon color cosmetics in France, Italy and certain distributor territories were partially offset by higher net sales of Revlon color cosmetics in the U.K.

In Latin America, net sales in the second quarter of 2012 were $32.3 million, an increase of $6 million, or 22.8%, compared to $26.3 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales increased $7.3 million, or 27.8%. The increase was primarily due to higher net sales of Revlon and Almay color cosmetics and Revlon ColorSilk hair color throughout the region. Venezuela’s increase in net sales in the second quarter of 2012 as compared to the same period last year was primarily due to the absence of sales in June 2011 as a result of the June 5, 2011 fire that destroyed the company’s facility there. Net sales in the region also benefited from higher selling prices in Venezuela and Argentina, reflecting market conditions and inflation, which accounted for approximately one-third of the $7.3 million net sales increase in the region.

In Canada, net sales in the second quarter of 2012 were $20.7 million, an increase of $1.2 million, or 6.2%, compared to $19.5 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales increased $2.1 million, or 10.8%, primarily due to higher net sales of Revlon and Almay color cosmetics.