Avon has reported a 20 percent drop in revenue to US$1.6 billion for full-year 2015. However, the direct sales giant noted that revenue was up 3 percent in constant dollars, excluding the divestiture of Liz Earle. Revenue was impacted by Brazil’s new IPI tax on cosmetics.

“Our operating performance for the fourth quarter and fiscal year was in-line with our most recent outlook,” commented Sheri McCoy, CEO. “Looking back at 2015, our key local markets drove steady improvement in overall performance. Importantly, we improved year-on-year Active Representative trends – with full-year growth of 1 percent. We are on track to close our partnership with Cerberus and fully engaged in executing our transformation plan.”

Indeed, the company’s transformation plan, announced in January 2016, includes cost reductions to the tune of US$350 million over three years, achieved through restructuring and other cost-saving stratagies. The company intends to reinvest a portion of these cost savings in growth initiatives, including media, social selling and IT to help modernize the business. In the long-term, Avon’s goal is to return to mid-single digit constant-dollar revenue growth.