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Despite Fourth Quarter Decreases, Revlon Financials Up in 2011

Posted: February 17, 2012

Revlon, Inc.  announced results for the year and the fourth quarter ended Dec. 31, 2011. The company saw net sales of $1,381.4 million in 2011 compared to $1,321.4 million in 2010, an increase of 4.5%. Excluding favorable foreign currency fluctuations of $17 million, 2011 net sales increased by 3.3%.

Commenting on the announcement, Revlon president and CEO Alan T. Ennis said, “2011 was a year of many notable achievements. We delivered net sales growth of 4.5% and sustained highly competitive operating income margins. We delivered our fourth consecutive year of positive free cash flow and we improved our capital structure by refinancing and reducing our net debt. From a marketplace perspective, our emphasis on effective brand communication and strong in-store execution drove our positive performance and we introduced a number of successful new, innovative, consumer-preferred products across our entire portfolio. We acquired the Sinful Colors brand and signed two of Hollywood’s most sought-after actresses, Emma Stone and Olivia Wilde, as global brand ambassadors for the Revlon brand.”

Ennis concluded, “We continue to manage our business carefully, with an emphasis on maintaining our operating margins, as we remain focused on continuing to realize our strategic objective of profitably growing our business.”

Net sales in 2011 were $1,381.4 million, an increase of $60 million, or 4.5%, compared to $1,321.4 million in 2010. Excluding favorable foreign currency fluctuations of $17 million, net sales increased by $43 million, or 3.3%. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon and Almay color cosmetics and Revlon ColorSilk hair color. These increases were partially offset by lower net sales of Revlon beauty tools and lower net sales in Venezuela due to the June 2011 fire at the company’s local facility.

In the US, net sales in 2011 were $757.4 million, an increase of $28.3 million or 3.9%, compared to $729.1 million in 2010. In Asia Pacific, net sales in 2011 were $233.4 million, an increase of $23.5 million, or 11.2%, compared to $209.9 million last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $8.4 million, or 4%. In Europe, Middle East and Africa, net sales in 2011 were $208.7 million, an increase of $8.3 million, or 4.1%, compared to $200.4 million last year. Excluding the favorable impact of foreign currency fluctuations, net sales increased $4 million, or 2%. In Latin America, net sales in 2011 were $107.2 million, essentially unchanged year-over-year. Excluding the unfavorable impact of foreign currency fluctuations, net sales in Latin America increased $4.6 million, or 4.3%. In Canada, net sales in 2011 were $74.7 million, essentially unchanged year-over-year. Excluding the favorable impact of foreign currency fluctuations, net sales in Canada decreased $2.3 million, or 3.1%.