Following an investor call—whereby Revlon reported a successful fourth quarter for its Consumer and Professional segments—Lorenzo Delpani, Revlon’s Chief Executive Officer, announced he was stepping down from his role, effective March 1.
“I do this for personal reasons. It has been a pleasure and a privilege to lead this extraordinary company during a period of transformation and growth. It has been my mission to continue Revlon’s industry-leading commitment to quality and innovation, and it is the Revlon team’s relentless drive toward those goals that has paved the way for our current and future success,” Lorenzo said.
He added that his decision to step down was unrelated to the January 15 announcement by Revlon Inc.’s controlling shareholder, Ron Perelman, that he would be seeking strategic alternatives for the cosmetics maker, but did not detail a specific plan.
Net sales were $521.9 million in the fourth quarter, up 4.2 percent, or 9.8 percent on a foreign exchange basis. On a full-year basis, net sales were $1.91 billion in 2015, a decline of 1.4 percent, yet a growth of 4.9 percent on a foreign exchange basis.
Net income was $24.8 million in the quarter 2015, including the impact of $37.5 million of non-operating item net of taxes. On a full-year basis, net income was $56.1 million in 2015, including the impact of $47.3 million of non-operating items, net of taxes.
The non-operating item for both periods included a pension lump-sum settlement charge of $20.7 million and a non-cash goodwill impairment charge of $9.7 million, which was $6 million after-taxes.
During 2015, the company reinvigorated its key brands and increased profitability. At the same time, it successfully integrated the Colomer business into Revlon and reduced its cost structure.
In 2015, Consumer segment net sales were $1.41 billion. On a foreign exchange basis, and excluding Venezuela, Consumer net sales increased by 4.4 percent in 2015. This increase was mainly driven by higher net sales of Revlon color cosmetics, Mitchum, Revlon ColorSilk and Cutex, partially offset by lower net sales of Almay.
Consumer segment profit was $360.2 million in 2015. On a foreign exhange basis, and excluding Venezuela, Consumer segment profit increased by 11.1 percent in 2015. The increase was mainly due to higher gross profit as a result of the increase in net sales, partially offset by $8.7 million of higher brand support for the company’s consumer brands.
In 2015, net sales in the U.S. were $1.04 billion, or 2.1 percent higher than in 2014. U.S. net sales increased $33.4 million in the Consumer segment, primarily driven by higher net sales, or Revlon color cosmetics, Mitchum and Revlon ColorSilk, partially offset by lower net sales of Almay. U.S. net sales decreased $11.6 million in the Professional segment, primarily due to lower net sales of CND nail products.