Revlon, Inc. announced its financial results for the second quarter ended June 30, 2011. Compared to second quarter 2010, net sales were at $351.2 million compared to $327.7 million in 2010, an increase of 7.2%. Excluding favorable foreign currency fluctuations of $10.5 million, second quarter 2011 net sales increased 4.0%. Revlon also saw an increase in operating income, $47.8 million compared to $47.3 million.
Commenting on the announcement, Revlon president and CEO Alan T. Ennis said, "In the second quarter of 2011, consistent with our strategy of driving profitable growth, we delivered top line growth of 4%, while supporting our brands at appropriate levels and maintaining competitive operating margins. From a marketplace perspective, we introduced successful, innovative, high-quality, consumer-preferred products into the global marketplace, and our acquisition of Sinful Colors is transitioning well and performing to expectations. In the quarter, we improved our capital structure by refinancing our bank credit facilities, reducing the interest rates on our debt and extending maturities."
In the U.S., net sales in the second quarter of 2011 were $194.9 million, an increase of $15.6 million, or 8.7%, compared to $179.3 million in the same period last year. The increase was primarily driven by the inclusion of the net sales of Sinful Colors and higher net sales of Revlon color cosmetics.
In Asia-Pacific, net sales in the second quarter of 2011 were $58.5 million, an increase of $9.8 million, or 20.1%, compared to $48.7 million in the same period last year.
In Europe, the Middle East and Africa, net sales in the second quarter of 2011 were $52.0 million, an increase of $1.8 million, or 3.6%, compared to $50.2 million in the same period last year.
In Latin America, net sales in the second quarter of 2011 were $26.3 million, a decrease of $2.4 million, or 8.4%, compared to $28.7 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales in Latin America decreased $1.0 million, or 3.5%. The decrease was primarily due to lower net sales in Mexico, Venezuela and certain distributor markets, which were partially offset by higher net sales in Argentina. Also, in early June 2011, the Revlon manufacturing facility in Venezuela was destroyed by fire, and as a result, in the second quarter of 2011, the company recorded a $4.9 million impairment loss related to the net book value of Revlon Venezuela's inventory, property, plant and equipment that were destroyed. Because of this Revlon has not recorded any net sales in Venezuela since early June 2011. During the second quarter of 2011, lower net sales in Venezuela as a result of the fire were largely offset by higher selling prices in Venezuela given market conditions and inflation, as compared to the same period last year.
In Canada, net sales in the second quarter of 2011 were $19.5 million, a decrease of $1.3 million, or 6.3%, compared to $20.8 million in the same period last year. Excluding the favorable impact of foreign currency fluctuations, net sales decreased $2.4 million, or 11.5%, primarily due to lower net sales of Revlon color cosmetics.
Additionally, consistent with the company's business strategy of improving its capital structure, Revlon refinanced its bank credit facilities in the second quarter of 2011, which reduced interest rates and extended the debt maturities.
For more information on this financial report, visit Revlon’s website.
