With more expensive product, Avon raises revenue in Brazil

Avon's revenue in Brazil grew 1 percent in the third quarter, compared with the same period last year. In constant dollar, the indicator has increased 13%, benefited in four percentage points for tax credits in the country.
Based on the quarterly result, the Avon command considered that the strategy of launching products with local appeal and higher prices was successful. "Brazil is a good example where we invest in advertising, pricing and products more expensive, and they're doing exceptionally well," said yesterday Sheri McCoy, CEO of Avon, the analysts.
Between the releases of beauty, the Chief Financial Officer of Avon, Kimberly Ross, highlighted the Avon makeup Line Color, moisturizers and perfume Charm the girl from Ipanema. "These products have been specifically developed for the Brazilian market, and we were able to launch them successfully at a higher price," he said.
However, the increase in prices in the country caused the volume of products sold by the company fell in its main segment, of beauty. Avon has not reported how much, but in Latin America there was no indentation of 6% in the number of units sold.
Kimberly also said that last year the Avon liquidated stocks in Brazil in the third quarter, therefore the basis for comparison is high. "This year, with better management of inventories, we didn't have to do that," said later the value Executive Vice President Avon in Brazil, Ricardo Patrocínio.
In constant dollars, the fashion segment revenue and 18% in Brazil increased in the third quarter, as a result of changes in merchandising and pricing implemented over the last year, said Kimberly on teleconference on the balance sheet. The sale of beauty products grew by 6% in value, next to rival Natura, which was discharged from 5.4% in revenue in the period.
According to her, the pace of growth in consolidated revenue should not be repeated in the fourth quarter, due to the strong basis of comparison in the same period in 2012.
Avon recorded a loss of $ 5.5 million in the third quarter, compared with net income attributable to stockholders of $ 31.6 million in the same period last year. Multinational's net revenue fell 8% in the world and totaled $ 2.26 billion.
In Latin America, operating profit declined 14% from Avon, to $ 126.1 million. The company's revenue fell 5% in the region, for $ 1.2 billion. In constant dollar, there were 6% high.
The Asia Pacific presented the biggest decline in sales of 22%, pulled by a fall of 67 percent in China. In North America, revenue shrank 19%. In the region that includes Europe, Middle East and Africa, revenue remained stable.
Avon reported yesterday that the SEC, which regulates the u.s. capital markets, proposed an agreement with value "significantly" higher than the $ 12 million that the company had proposed to terminate a process that is accused of bribing officials in countries like China, Brazil and Mexico. If an agreement on this new level is closed, Avon said that their business would be affected substantially.