PR Newswire
LONDON, Oct. 31, 2019
LONDON, Oct. 31, 2019 /PRNewswire/ -- Avon Products, Inc. (NYSE: AVP) today announced its results for the quarter ended September 30, 2019.
| | THREE MONTHS ENDED SEPTEMBER 30, 2019 | | ||||||
| | | | | | Change vs 3Q18 | | ||
| | Reported (GAAP) | | Adjusted1 (Non- | | Reported (GAAP) | | Adjusted1 (Non- | |
Total US$ Reportable Segment Revenue | | $1,183.3 | | $1,115.6 | | (16)% | | (11)% | |
Total C$1 Reportable Segment Revenue Change | | | | | | | | (6)% | |
| | | | | | | | | |
Gross Margin | | 60.6% | | 58.1% | | (160) bps | | 100 bps | |
US$ Operating Profit | | $97.7 | | $66.7 | | (48)% | | 74% | |
Operating Margin | | 8.2% | | 6.0% | | (490) bps | | 300 bps | |
| | | | | | | | | |
Diluted EPS from continuing operations | | $0.21 | | $0.11 | | $0 | | $0.11 | |
Free Cash Flow1 | | | | $64.8 | | | | $48.5 | |
Jan Zijderveld, Avon CEO, said, "We continue to execute our Open Up turnaround strategy, with productivity gains driving adjusted operating margin expansion and improved free cash flow1. The push and pull strategies that we have spoken about, along with a bigger, on trend stream of innovations, are working together to create significant value. As expected, revenues declined as we continued to make sharper choices designed to drive a healthier, more sustainable and more profitable business."
Mr. Zijderveld continued, "Our focus on productivity led to a 4% improvement in Average Representative Sales with price/mix up 9%. We are restoring brand relevance and improving the effectiveness of our portfolios with innovation focused on Beauty. Our training programs are expanding and getting stronger based on what we have learned. Representatives are more productive and better practices are improving the quality of sales, both of which are crucial to sustainable, profitable growth."
Gustavo Arnal, Avon CFO, said, "We continue driving pricing and productivity improvements across all areas of our business. As we do this, we are transitioning to a more financially sound and sustainable business. Adjusted operating margins in Q3 doubled versus prior year, in spite of FX. Year to date, we have reduced headcount by 15% and aggressively reduced costs as part of our Fuel for Growth program. Free Cash Flow in Q3 was four times higher than last year, even as we funded significant restructuring investments."
Highlights for Third-Quarter 2019 (compared with third-quarter 2018, unless otherwise noted):
Third-Quarter 2019 Segment Review (compared with third-quarter 2018, unless otherwise noted)
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SEGMENT RESULTS | | | | | | | | | | | | | | | | ||||||
($ in millions) | | | | | | | | | | | | | | | | ||||||
| Revenue | | Adjusted Revenue | | Active | | Average | | Units | | Price/ | | Active | ||||||||
| US$ | | US$ | | C$ | | | | | | |||||||||||
Revenue & | Reported | | % | | Adjusted | | % | | % | | % var. vs | | % var. | | % var. | | % var. | | % var. vs 2Q19 | ||
| | | | | | | | | | | | | | | | | | | | ||
Europe, Middle | $ | 398.3 | | (10)% | | $ | 398.3 | | (10)% | | (7)% | | (6)% | | (1)% | | (13)% | | 6% | | (2)% |
South Latin | 494.0 | | (23) | | 426.3 | | (11) | | (3) | | (10) | | 7 | | (16) | | 13 | | 5 | ||
North Latin | 184.7 | | (11) | | 184.7 | | (11) | | (9) | | (13) | | 4 | | (15) Werbung Mehr Nachrichten zur Avon Products Aktie kostenlos abonnieren
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