Revlon third quarter sales jump driven by Elizabeth Arden acquisition
Revlon on Friday reported its third quarter financial results, which includes the results of Elizabeth Arden. The company completed the acquisition of Elizabeth Arden on September 7, 2016.
Total net sales increased 28.3% to $604.8 million and increased to $745.1 million on a Pro Forma basis, total net loss was $4.7 million and Pro Forma adjusted net income was $15.8 million, a $21.8 million increase over 2015. Adjusted EBITDA increased 34.8% to $113.4 million and Pro Forma adjusted EBITDA increased 10.4% to $105.5 million.
The consumer segment sales fell to $342.8 million from $348.1 million, while the professional segment increased to $118.8 million from $114.5 million. Elizabeth Arden contributed $135.2 million in total sales and $275.5 million on a Pro Forma basis. Total company segment profit increased to $137.1 million from $108.0 million in the prior third quarter.
The Revlon consumer segment struggled in North America with sales falling 5.3% from the prior year quarter, but this was offset by a 9.7% increase in international net sales. The professional segment increased 2.2% in North America and 6.3% internationally, driven primarily by Revlon Professional hair products and American Crew men’s grooming products.
Revlon President and Chief Executive Officer, Fabian Garcia, said, “Reporting as a combined organization for the first time since completing the Elizabeth Arden acquisition, we are pleased to share that the total company has continued its growth trajectory through the third quarter, with reported net sales up 30.0% XFX, or up 2.5% on a pro forma, XFX basis. All four of our reporting segments, Consumer, Professional, Elizabeth Arden and our Other segment, delivered XFX net sales growth in the quarter, with Elizabeth Arden and the Professional businesses realizing increases in both of the North America and International regions.”
Revlon acquired Elizabeth Arden for $870 million, or $14.00 per share. The company announced in June that it would acquire Elizabeth Arden in an effort to better compete with Estée Lauder and L’Oréal. Elizabeth Arden Chief Executive Scott Beattie joined the Revlon board as a non-executive vice chairman and advisor to Garcia.
The acquisition also had a positive impact on the company’s nine-month net sales, which increased 10.1% to $1,533.3 million from $1,392.4 million. Total Pro Forma Adjusted EBITDA increased 15% to $260.0 million from $226.0 million and net loss was $34.2 million compared to $139.2 million.
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