London-based Avon Products, Inc. (NYSE: AVP) today announced its results for the quarter ended June 30, 2018.
Total revenue decreased 3 percent to $1.4 billion, or increased 1 percent in constant dollars, both including a benefit of approximately 4 percent due to the impact of adopting the new revenue recognition standard and both including an approximate 1 percent unfavorable impact from the Brazil truckers’ strike. Active Representatives declined 4 percent, driven by decreases in South Latin America, primarily Brazil, Europe, Middle East & Africa and North Latin America, or declined approximately 3 percent excluding the Brazil truckers’ strike.
“Entering my seventh month at Avon, I am encouraged by improved revenue growth in three of our top five markets and the promising trends we are seeing across the majority of the rest of our business,” said Avon CEO Jan Zijderveld. “This is underpinned by our improving service quality and operational efficiencies, and in turn reflected in our higher operating margin. However, we are not yet satisfied with the overall operating results of the quarter.”
Regionally, revenue results were:
- Europe, Middle East & Africa: up 1 percent, or relatively unchanged in constant dollars, both including a benefit of approximately 3 percent due to the impact of adopting the new revenue recognition standard. Revenue and constant-dollar revenue were impacted by a decrease in Active Representatives.
- South Latin America: down 8 percent, or up 3 percent in constant dollars, both including a benefit of approximately 5 percent due to the impact of adopting the new revenue recognition standard.
- North Latin America: relatively unchanged, or up 3 percent in constant dollars, both including a benefit of approximately 5 percent due to the impact of adopting the new revenue recognition standard
- Asia Pacific: down 1 percent, or up 1 percent in constant dollars, both including a benefit of approximately 1percent due to the impact of adopting the new revenue recognition standard.
To read the full Avon Q2 report, click here.
