Revlon pushes through despite COVID-19-related macroeconomic headwinds

06 May 2022 --- Despite facing unpredictable supply chain issues caused by the COVID-19 pandemic, cosmetic company Revlon Inc, says it has advanced across its business segments Revlon, Elizabeth Arden, Portfolio and Fragrances, according to its first-quarter results.

“Each of our reporting segments grew over the prior year. We experienced our best quarter one (Q1) adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) numbers in six years,” says Debra Perelman, president and CEO at Revlon.

“Our first-quarter results were strong on top and bottom line.” Although its yearly revenue is still 16.4% down from before the pandemic when comparing the annual 2021 and 2019 results. “Net sales in 2019 were US$2,419.6 million,” whereas, in 2021, net sales were “US$2,079 million.” 

The company’s operating income was “US$23.7 million in the first quarter of 2022…an improvement of US$36.4 million” compared to the same period last year.

“Net loss was US$67.0 million in the first quarter of 2022, versus a US$96.0 million net loss in the prior-year period.” Revlon experienced its best Q1 adjusted EBITDA numbers in six years, says Perelman. 

Revlon says it is  implementing a “well-established strategic plan,” focusing on its iconic brands. 

“[This includes our] digital acceleration to drive long-term, sustainable growth – while protecting profitability and managing our liquidity. We continue to manage our business dynamically as we navigate ongoing macroeconomic uncertainty,” says Perelman. 

The company notes that its positive evolution on net sales and profit were caused by an improvement from the effects “of the ongoing COVID-19 pandemic” within its mass retail and eCommerce channels.   

Revlon boost in color and hair
The company says that the Revlon segment’s net sales in the first quarter were US$182.1 million, a 12.4% increase compared to last year’s Q1. 

This was caused by COVID-19 improvements such as the “salons’ increased activity connected with the progressive and temporary lifting of restrictions.”  

The segment recorded higher sales of Revlon color cosmetics and Revlon ColorSilk in North America; and to a lesser extent, higher sales of professional hair care products internationally. 

The first quarter of Revlon segment profit rose to US$23.6 million, “a 195.0% increase, compared to US$8.0 million” in the previous year’s first quarter.

Elizabeth Arden fragrance and retail improvement
Elizabeth Arden’s net sales in the first quarter were US$114.9 million, a 2.4% increase compared to last year’s same quarter, says the company.

This was driven by higher sales of Green Tea and White Tea fragrances internationally; to a lesser extent, higher sales of other branded perfumes. The brand saw lower sales of Elizabeth Arden Ceramide in North America. 

Additionally, this was caused by an improvement in retail and department stores and an increase in the “travel retail business.” 

The first quarter of Elizabeth Arden segment profit was US$5.9 million, “a 35.9% decrease, compared to US$9.2 million” in the previous year’s quarter. Revlon notes improvement from the effects of the COVID-19 pandemic within its mass retail and eCommerce channels.  

Portfolio antiperspirant and nail products
Portfolio net sales in the first quarter were US$99.2 million, a 3.3% increase compared to last year’s Q1, says the company.

The brand’s sales were caused by higher Mitchum antiperspirant deodorants and CND nail products internationally. North America saw higher sales of Almay color cosmetics. 

The first quarter of the Portfolio segment profit was US$17.3 million, “a 32.1% increase, compared to US$13.1 million” 2021 first quarter. 

Fragrance’s recovery from the pandemic
Fragrance’s net sales in the first quarter were US$83.4 million, an 11.5% year-on-year increase, says the company.

The rise in sales was mainly driven by global sales of fragrance Britney Spears and, to a lesser extent, John Varvatos and Juicy Couture.

The first quarter of Fragrances segment profit was US$11.6 million, “a 46.8% increase, compared to US$7.9 million” from the prior year Q1.

Edited by Venya Patel