NEW YORK Increased sales, restructuring efforts and cost control helped improve financial performance in 2007, according to Revlon president and chief executive officer David Kennedy.
“We are executing our strategy and our financial results in 2007 were our best in many years. We generated $224.5 million in adjusted EBITDA and our negative free cash flow was $13.8 million,” stated Kennedy.
For full year 2007, sales rose 5.2 percent to $1.4 billion compared with $1.3 billion in the year-ago period. Net sales for the full year 2006 were reduced by $19.7 million from Vital Radiance, the discontinued cosmetics line geared toward women aged 50 and older.
In the United States, sales for the year rose 5.1 percent to $804.2 million, compared with sales of $764.9 million in the year-ago period. Net sales in the United States for full year 2006 were reduced by $20.2 million from Vital Radiance.
Net loss for the year narrowed to $16.1 million, or 3 cents per share, compared with a net loss of $251.3 million, or 60 cents per share, in the year-ago period.
For the fourth quarter, the company swung to a profit. Net income totaled $40.8 million, or 8 cents per share, compared with a net loss of $5.5 million, or 1 cent per share, in the year-ago period. The current fourth quarter included restructuring expenses of $0.4 million. Last year’s quarter was unfavorably impacted by $20.8 million in restructuring and Vital Radiance-related expenses.
For 2008, the company is planning to introduce a new line up of products for Revlon and Almay color cosmetics.