Avon country indicators improvement in Q4

Nine months after taking over the overall command of Avon with the mission to give a turnaround at the company, Sheri McCoy said yesterday the analysts who see "early signs of stabilization" in key markets for the company, including in Brazil-its largest subsidiary and has lost market. Despite the overall loss of $ 162 million in the fourth quarter, the result of Avon excluding restructuring costs and writedowns was above market expectations. The adjusted net income was $ 161 million.
Following the disclosure of balance sheet, yesterday, Avon's shares on the New York Stock Exchange closed at high of 20.34%, US $ 20,79, the highest value since Sheri is in Office. The new CEO announced in November a plan to save $ 400 million by 2015.
In the fourth quarter of 2012, Avon's global revenue fell 1% as compared to the same period last year, to $ 3 billion. In units sold, the company recorded a high of 2%. North America pulled the recipe down, with 12% indentation in the same comparison, for $ 516 million. The number of dealerships increased 1% in the world, but decreased in North America.
Sales in Brazil decreased 3% in value from October to December, with the exchange rate effect. In constant dollars, increased by 10%, driven by a 9% increase in the number of active resellers. By volume, progress was made both in the beauty category as sales in fashion and home. The disposal of excess stock in Brazil helped, particularly in home and fashion products. According to Kimberly Ross, Chief Financial Officer of Avon, the adjustments in the product portfolio and price reductions made in the second half also contributed to the performance.
It was the second quarter followed in which Avon has managed to increase the sales volume and the number of dealerships in Brazil. The pace of decline in revenue has declined in relation to previous quarters (from July to September, the indicator had retreated 19%). Despite advances, Kimberly acknowledges that results in Brazil continue to be pressured by competition and service challenges. According to Sheri, the Brazilian team focuses its efforts on three fronts: value proposition to consumers, gains of dealerships and service improvements.
The Latin America had the best regional performance in the fourth quarter, with revenues 2% higher, at $ 1.3 billion. Mexico and Venezuela argued high. The operating profit in the region rose 6% to $ 136 million.
Avon said it can repatriate funds from abroad to meet the domestic business. The company's revenue in North America shrank in the quarter due to weak sales and sales at Christmas. The region accounted for 17% of the company's global sales. The operating loss increased by 17% in North America, for $ 201 million.
In all, Avon recorded a loss of $ 42,5 million against a profit of $ 513,6 million in 2011. Net revenue fell 5% to $ 10.72 billion.
The company also announced that evaluate "strategic alternatives" for the Silpada jewelry business, bought in 2010 for $ 650 million, whose revenue declined 18 percent in the fourth quarter.