Revlon has released its results for the first quarter of the financial year. The combined company reported a drop in net sales of 5.8 percent to US$594.9 million for the three months ended March 31, 2017 on a Pro Forma basis, and an operating loss of US$6.6 million (Pro Forma Adjusted) compared to an operating income of US$20.1 million in the prior-year period. Adjusted EBITDA was down 47 percent, driven by net sales declines in North America across all segments.
However, the company remained upbeat, claiming that it is starting to realize the benefits of increased and accelerated acquisition synergies, such as enhanced scale, a more diverse brand portfolio and expanded geographic footprint.
“While we are disappointed with our US results, our brands continue to achieve strong international net sales growth across all segments and despite the US retail environment, our iconic beauty brands have demonstrated resilience and have maintained market share in the US,” said Fabian Garcia, Revlon President and CEO. “I am confident that we have the strategy, leadership team and capabilities in place to deliver our long-term growth ambitions. We are now beginning to realize the acquisition synergies at a faster pace, and we expect to increase sequentially throughout the year, providing improvements in our operating P&L and fueling incremental brand investment.”