Avon Products, Inc. reported first-quarter 2013 results. "Our first-quarter results reflect continued signs of stabilization, including early progress in our cost reduction efforts," said Sheri McCoy, CEO. "I'm pleased with the performance of our Latin America and Europe, Middle East and Africa regions, particularly in Brazil and Russia. The teams there are focused on ensuring that this performance is sustainable. As for our other markets, there remains work to be done, particularly in the U.S."
For the first quarter of 2013, total revenue of $2.5 billion decreased 4%, but was relatively unchanged in constant dollars. Total units decreased 3% and price/mix increased 3% during the quarter, while active representatives increased 1%. Avon Beauty sales declined 5%, or 1% in constant dollars. On a reported basis, fragrance grew 1%, while personal care, color and skin care declined 3%, 6% and 12%, respectively. On a constant-dollar basis, fragrance increased 6% and personal care was unchanged, while color and skin care declined 2% and 9%, respectively.
Operating activities used $119 million of cash during the first quarter of 2013 compared with $33 million in the first quarter of 2012, unfavorably impacted primarily by the make-whole premium on the Company's private notes, higher payments for employee incentive compensation and restructuring, and higher inventory levels. Partially offsetting these items were higher levels of accounts payable and lower income tax payments. The overall net cash provided in the first quarter was $279 million, which compares with the use of $30 million in first-quarter 2012, and this was primarily due to proceeds related to the issuance of debt, partially offset by debt repayment and cash used for operations.
For Latin America, first-quarter constant-dollar revenue growth was primarily due to an increase in active representatives. as well as higher average order. Total revenue was $1.1.4 billion, which about matched first quarter 2012 revenue. Brazil revenue was down 2%, or up 11% in constant dollars, primarily driven by increases in both average order and active representatives. Brazil's revenue included an approximate two point benefit, which had an approximate one point benefit to the region's revenue growth, from the initial realization of a government incentive that was recognized in the first quarter of 2013, associated with activity in prior years. Mexico revenue was up 6%, or 3% in constant dollars, primarily driven by an increase in active representatives, partially offset by the negative impact of the timing of the Easter holiday. And Venezuela revenue was down 15%, or up 3% in constant dollars, as average order benefited from the year-over-year inflationary impact on pricing. This growth was substantially offset by a decrease in active representatives, which was driven by continued economic and political instability.
For Europe, Middle East and Africa region, Avon recorded $733.1 million in total revenue, up 1% from the same time in 2012. First-quarter constant-dollar revenue growth was primarily due to an increase in active representatives. Russia revenue was up 3%, or up 4% in constant dollars, primarily due to an increase in active representatives, partially offset by lower average order, while the U.K. revenue was down 9%, or down 8% in constant dollars, primarily due to a decrease in active representatives.Turkey revenue was down 2%, both in reported and constant dollars, as lower average order was partially offset by an increase in active representatives, South Africa revenue was down 11%, or up 2% in constant dollars, primarily due to higher average order, partially offset by a decrease in active representatives.
For North America, total revenue was $406.2 million for the quarter, a 15% drop from Q1 2012. This was primarily due to a decrease in active representatives and, to a lesser extent, lower average order. The North America Avon business revenue declined 15%, as it continues to be challenged by disruption in the field due to redistricting in the U.S., as well as other operational challenges.
For the Asia Pacific region, the company saw total revenue of $200 million, down 10% from the same period in 2012. First-quarter constant-dollar revenue decreased due to lower average order and a decrease in active representatives. Revenue in China declined 30%, or 31% in constant dollars, primarily due to declines in unit sales and the transition to a retail incentive model. Revenue in the Philippines was down 1%, or 6% in constant dollars, as the market has experienced operational challenges, including weaker service levels.