Revlon’s Q2 2016 Earnings Preview
Revlon is slated to release its Q2 2016 earnings results on July 29th. A few days back, Revlon released its preliminary Q2 2016 results where its revenues for the quarters were up by 1.5% Y-o-Y to $489 million whereas its Adjusted EBITDA fell by ~1% Y-o-Y to $89 million. Revlon’s Consumer segment performed well in most international markets with popular brands being Cutex nail products, SinfulColors color cosmetics, and Mitchum anti-perspirant deodorants. However, the Professional segment remained flat for the quarter. We are awaiting further details of the company’s performance that will be revealed in its second quarter results.
Revlon’s Notable Acquisitions So Far In 2016
- On June 6th, Revlon acquired the nail brand, Cutex International, business from Coty. The Cutex International business mainly operates in the U.K. and in Australia. Revlon already owned a part of Cutex and with this acquisition, Revlon completed the global consolidation of Cutex’s worldwide operations under its own brand portfolio. Revlon aims to redesign some of Cutex’s nail care products and expand the portfolio of offerings so that it appeals to a wider customer base.
- Also in June, Revlon announced its decision to acquire premium cosmetics company Elizabeth Arden for $870 million. Post the Elizabeth Arden deal, the role of fragrance in Revlon’s category mix is expected to increase from 4% to around 28%. This increased dominance of fragrance is expected to increase Revlon’s market share in the global antiperspirants, deodorants, and fragrance market. According to Revlon’s CEO Fabian Garcia, this deal will place Revlon among the top 20 global beauty companies. The combined business is expected to generate ~$3 billion in annual sales and $517 million in annual adjusted EBITDA.
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Have more questions on Revlon? See the links below.
- What Is Revlon’s Fundamental Value On The Basis Of Its Forecasted 2015 Results?
- How Has Revlon’s Revenue And EBITDA Composition Changed Over 2012-2016E?
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- What Is Revlon’s Fundamental Value Based On 2016 Estimated Numbers?
- How Has The TCG Acquisition Boosted Revlon’s Growth?
- How Did Revlon’s Different Segments Perform Over The Last 5 Years?
- Revlon’s Q1 2016 Earnings Results
- What Are The Implications Of Revlon’s Acquisition Of Cutex International Business?
- Revlon’s Expected Revenue And EBITDA For 2016: Trefis Estimate
- How Might The Acquisition Of Elizabeth Arden Help Revlon?
- How Is Revlon’s Revenue Composition Expected To Trend?
- How Is Revlon Expecting To Benefit From The Elizabeth Arden Deal?
- How Might Revlon’s Valuation Change Post The Elizabeth Arden Deal?
- How Do Revlon’s Preliminary Q2 2016 Results Look?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Revlon