Revlon has announced its results for the third quarter of the financial year, which cover its Elizabeth Arden unit for the first time, after the purchase was completed in September.
Largely thanks to the Arden acquisition, reported net sales were up a healthy 28.3 percent to US$604.8 million, although the US$33.5 million in acquisition and integration costs involved led Revlon to post a loss of US$4.7 million.
Indeed, sales were up at Arden, with the division posting an increase of 3.6 percent on a pro-forma XFX basis, to US$275.5 million. Revlon’s professional unit also delivered a solid performance, with net sales up 4.5 percent. The consumer segment suffered from lower net sales of SinfulColors cosmetics, which offset higher sales of Revlon color cosmetics and beauty tools for a flat overall result – inching up 0.1 percent on a pro forma XFX basis.
Revlon President and Chief Executive Officer, Fabian Garcia, said, “Reporting as a combined organization for the first time since completing the Elizabeth Arden acquisition, we are pleased to share that the total company has continued its growth trajectory through the third quarter, with reported net sales up 30 percent XFX, or up 2.5 percent on a pro forma, XFX basis. All four of our reporting segments, Consumer, Professional, Elizabeth Arden and our Other segment, delivered XFX net sales growth in the quarter, with Elizabeth Arden and the Professional businesses realizing increases in both of the North America and International regions.
“During the third quarter we completed our acquisition of Elizabeth Arden and began to develop our new organizational structure that is designed to enable us to drive future global growth. We are making good progress on integrating the Revlon and Elizabeth Arden organizations and we have confirmed our ability to deliver at least the US$140 million of multi-year synergies and cost reduction estimates related to the two transactions. We remain enthusiastic about the significant value creation opportunity presented by the combination of our companies and brands.”