Following its acquisition of Elizabeth Arden and Cutex, as well as the departure of CEO and president, Lorenzo Delpani, Revlon has reported a second quarter 2016 year-over-year gain of 1.3%, totaling $489 million (2015: $482 million). Excluding the impact of foreign currency, the sales gain was 3.5%.
Meanwhile, Revlon Escrow Corporation is proposing to issue $400 million aggregate principal amount of senior unsecured notes, due 2024, to partly finance the company’s Elizabeth Arden acquisition. The acquisition is expected to close by the end of 2016.
For the first six months of fiscal 2016, Revlon reported a year-over-year net sales gain of about $929 million, a gain of 0.8% (2015: $921 million). Excluding the impact of foreign currency, the sales gain was 3.5%.
"Once again, growth was fueled by product innovation..."
Second quarter adjusted EBITDA was approximately $89 million, to $90 million the same period 2015. Operating income totaled about $52 million, compared to approximately $61 million in the second quarter of 2015.
For the first six months, adjusted EBITDA was about $157 million, compared to $161 million during the same period of 2015. Operating income for the period totaled approximately $88 million, compared to about $106 million for the first six months of 2015.
According to the company, the consumer segment net sales growth was led by gains in Revlon color cosmetics, Cutex nail products, SinfulColors color cosmetics and Mitchum anti-perspirant deodorants. However, there were sales declines for Almay color cosmetics.
“I am delighted with our continued trajectory of net sales growth in the second quarter."
The professional segment net sales were relatively flat in the second quarter of 2016, compared to the second quarter of 2015, primarily due to higher net sales of Revlon professional hair products and American Crew men’s grooming products throughout the international region. These gains were offset by lower net sales of CND nail products.
“I am delighted with our continued trajectory of net sales growth in the second quarter," said Revlon’s president and CEO, Fabian Garcia. "Once again, growth was fueled by product innovation and strong performance by established brands in both the consumer and professional segments."
Garcia continued, "Our most salient innovations in our consumer segment included the new Revlon Mascara collection, Ultra HD Matte lipcolor and the Kylie SinfulShine Collection. Mitchum anti-perspirant deodorants and Cutex nail products also performed well. In our professional segment, American Crew’s line of special edition grooming products honoring Elvis Presley, an ultimate style icon, has continued to demonstrate strong sales in salons, as have Revlon Professional hair products.”
Garcia concluded, “During the second quarter of 2016 we also announced that Revlon signed an agreement to acquire Elizabeth Arden, Inc. and we are very excited about the strategic long-term growth platform that this acquisition will provide for us to enter into new categories, channels and markets. We expect to close this acquisition by the end of 2016, subject to customary closing conditions.”
