Friday, May 06, 2016

Prejudice grows and decreases revenue in Avon

The prejudice to the American cosmetics manufacturer Avon grew 12.6% in the first quarter of 2016, as compared to the same period of the previous year, to $ 165.9 million, reports balance of results published on Thursday. The company continues to suffer from the weakening of currencies in Latin America against the dollar and the weaker economic environment in the region.
Revenue decreased by 16.5% from January to March, reaching US $ 1.28 billion. Avon sold less in all markets in which it operates, in consolidated terms. In constant dollars, sales would grow 2 percent, highlighting the region of Europe, Middle East and Africa, where revenues rose 11%, and the volume sold grew 7%.
The sale of the British brand Liz Earle products with natural assets, in July 2015, also affected revenue. If deleted, the transaction, sales would rise 3 percent in constant dollars, says the company.
In Southern Latin America, revenue fell 28% in the three months to March, to $ 426.4 million, because the volume fall overshadowed improved price and mix. In constant dollars, revenues retreated 2 percent. In Northern Latin America, sales fell 11%, but would rise 2% excluding currency conversion.
In Europe, the Middle East and Africa, revenue decreased 2% to $ 520.4 million. In Asia-Pacific, the fall reached 17%, to $ 136.7 million.
According to the company, there was no impact of the tax on industrialized products (IPI) in Brazil, in constant dollars total would have gone up about 4% of.
The new shape of the IPI for cosmetic companies in the country one year ago in may, but new taxes appeared in several States since the end of 2015-as the increase in the rate of GST-affecting the results of the first quarter and probably throughout the year.
The recipe in Brazil decreased 33% or 7% in constant dollars, with an impact of 8 points due to the IPI. There was an increase in the average consumer spending per order, but fall in active representatives. New taxes introduced in the second half of last year have brought negative impact to 3 points in constant currency revenue in Brazil.
Valor Econômico – 05/05/16
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