Revlon Q3 2021: Sales rise 9.2 percent but net loss continues to rack up

Revlon Q3 2021: Sales rise 9.2 percent but net loss continues to rack up

THE WHAT? Revlon has reported its results for the quarter ended September 30, 2021. The US beauty manufacturer delivered net sales of US$521.1 million in Q3 2021, a 9.2 percent rise on the prior year period. All reporting segments recorded revenue growth.

THE DETAILS Operating income stood at US$34.1 million, a considerable improvement on Q3 2020’s US$9.7 million loss, which Revlon attributed to high net sales as well as a gross margin improvement.

As reported net loss was US$53.1 million, versus US$44.5 million net loss in the prior-year period, put down to the early extinguishment of debt in 2020 as well as unfavorable variance in foreign currency yoy.

In terms of segments, Elizabeth Arden was the star performer with sales up 15.5 percent yoy, followed by the company’s Portfolio unit (which comprises its Almay, Cutex and Mitchum brands, among others) where sales rose 13.2 percent. Fragrances put on a respectable 7.2 percent while Revlon inched up 4.2 percent.

THE WHY? Debra Perelman, Revlon’s President and Chief Executive Officer, stated, “Our results this quarter demonstrate that our strategy is working. The top-line growth in our brands and strong EBITDA performance are evidence of the sustained positive momentum we are seeing in our business as we continue to execute. For the second consecutive quarter, all our reporting segments increased revenue compared to the prior year, and our e-commerce segment posted double-digit growth. We are also well into the implementation phase of our Revlon Global Growth Accelerator program, which was put in place to support our long-term profitable growth.

“In terms of the macro environment, we continue to navigate global supply chain pressures, including increased prices on key ingredients and components, logistics challenges across all modes of transportation, and persistent labor shortages. As touched on last quarter, we are taking the appropriate steps to address these issues, including aggressively managing costs and implementing select price increases. While we expect these challenges to persist well into 2022, we are prepared to dynamically manage our business until the situation stabilizes.”