HBW Insight is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

Avon Q4

This article was originally published in The Rose Sheet

Executive Summary

Direct seller's net beauty sales grew 15% in the fourth quarter to $2.2 bil., driving overall 13% jump in revenue to $3.2 bil., company reported Feb. 4. Net income for the quarter grew 16% to $269.4 mil. On a regional basis, due largely to favorable currency valuations, revenue in the quarter climbed in Latin America; Central and Eastern Europe; Western Europe, Middle East and Africa; and Asia-Pacific. However, revenue declined in China (8%) and North America (7%), the latter impacted by lower consumer spending and double-digit declines in sales in the fashion and home categories. CFO Charles Cramb noted during a Feb. 4 conference call with investors that the recent devaluation of Venezuela's currency will have an $85 mil. unfavorable impact on the company's operating profit in 2010. For full-year 2009, revenue dipped 3% to $10.3 bil. and profit tumbled 29% to $625.8 mil

You may also be interested in...



S&E In Brief

Avon: Revenue rose 14% to $2.5 bil. in Avon's fiscal 2010 first quarter, while earnings dropped 64% to $42.5 mil., New-York-based direct seller reports April 30. Earnings declines were attributed to restructuring costs and the impact of currency devaluation in Venezuela, as predicted (1"The Rose Sheet" Feb. 8, 2010, In Brief). Avon spent $96 mil. on advertising in the quarter - up 23% from the same period last year - as it focused on sales representative recruitment. Its sales force increased by 6% in the quarter, growing in all regions except for China, firm says. North American revenue slipped 2%, negatively impacted by lower average orders and weakness in non-beauty business. Avon "expects results to vary on a quarterly basis" for 2010 as the firm optimizes its product portfolio and "enhances field fundamentals.

Sanofi Bets Big On IO With Synthorx Buy

The French drugmaker is paying $2.5bn to get hold of THOR-707 which it claims has the potential to become the best-in-class IL-2 therapeutic for solid tumors, thanks to improved pharmacology and less frequent dosing.

Global Industry Hails Bioequivalence Progress

For the first time, a working group within the International Council for Harmonization has started work on a regulatory topic specifically tailored to the global generics and biosimilars industry.

UsernamePublicRestriction

Register

RS016711

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel