For the fourth quarter ended December 31, Revlon reported revenues of $501 million, nearly in line with last year’s fourth quarter pro forma adjusted revenues of $500.8 million.
Net income totaled $2.7 million, compared with a loss of $33.1 million in the year ago period.
In the consumer segment, net sales were $383.3 million in the fourth quarter of 2014, as compared with pro forma net sales of $390.5 million in the prior year period. On an XFX basis, net sales in the fourth quarter of 2014 increased 5.4%, primarily driven by higher net sales of Revlon color cosmetics, Revlon ColorSilk hair color and Mitchum products, partially offset by lower net sales of fragrances and SinfulColors color cosmetics.
In November 2014, the company launched its “Love Is On” social media and marketing campaign, which aims to get emotional and sexy with consumers as opposed to being all about colors and fashion. In January 2015, the cosmetics firm also repositioned its suffering Almay brand with the Almay Simply American Campaign.
“Initial market response is encouraging. With the Revlon Love Is On campaign, we have one mission: to inspire love. The idea for Love Is On grew from our quest to find a universal inspiring emotion. Love is by far, the most powerful and most positive. From the moment a woman puts on Revlon makeup, we want to captivate her imagination and take her on a journey into the world of love. The Almay Simply American tagline celebrates the spirit of American beauty: fresh, natural and authentic. Almay Simply American was built upon the core American value of ingenuity and authenticity, with an uplifting and pioneering spirit. Our new campaign for Almay features brand ambassador Carrie Underwood, whose effortless beauty and body is the essence of the brand,” said Lorenzo Delpani, Revlon’s President and Chief Executive Officer.
During the quarter, sales in the Professional Division, which is mostly the result of brands acquired from The Colomer Group, more than doubled to $16.3 million. The Professional Division benefited from lower administrative expenses, though this was partially offset by higher spending on brand support.
Total company international net sales in the fourth quarter of 2014 were $228.3 million, compared to $245.2 million of pro forma international net sales in the prior year period. On an XFX basis, net sales in the fourth quarter of 2014 increased 7.1%. Within the consumer segment, the company had higher net sales of Revlon color cosmetics, primarily in Venezuela, benefitting from the increased availability of U.S. dollars to import finished goods for sale in Venezuela in 2014, as compared to 2013. Within the Professional segment, Revlon had higher net sales of American Crew and Revlon Professional products throughout most of the international region in the fourth quarter of 2014.
For the year, Revlon’s 2014 sales were $1.94 billion, up 1.7% compared to pro forma revenues of 2013. For 2014, the XFX growth rate (which excludes the impact of foreign currency fluctuation) was 4.7% on a year-on-year basis.
Total company international net sales in 2014 were $919.1 million, compared to $939.5 million of pro forma international net sales in 2013. On an XFX basis, net sales during 2014 increased 4.0%. Within the Consumer segment, Revlon had higher net sales of Revlon color cosmetics in Venezuela and Japan, as well as Mitchum products primarily in the U.K., partially offset by lower net sales of Revlon color cosmetics in certain distributor markets and fragrances in the U.K. and Italy. Results in Venezuela benefited from the increased availability of U.S. Dollars to import finished goods for sale in Venezuela in 2014, as compared to 2013. Within the Professional segment, Revlon had higher net sales of CND nail products, American Crew and Revlon Professional products throughout most of the International region in 2014. Total adjusted operating income in 2014 was $267.1 million, compared to pro forma adjusted operating income of $249.1 million in 2013, an increase of 7.2%, or 14.2% on an XFX basis.
Total adjusted EBITDA in 2014 was $375.2 million, compared to pro forma adjusted EBITDA of $348.4 million in 2013, an increase of 7.7%, or 12.9% on an XFX basis. The pro forma XFX increase in adjusted operating income and adjusted EBITDA was primarily due to the 4.7% XFX increase in net sales and approximately $17 million of synergies and organizational cost reductions related to the Integration Program, partially offset by higher brand support expenses of $38.1 million.