Revlon sees ‘mixed’ Q1 results
NEW YORK — While posting a “strong” first quarter, Revlon did see mixed dynamics for the consumer and professional segment, said Lorenzo Delpani, president and CEO.
The company reported on Wednesday that net sales, on a GAAP as reported basis, were $469.8 million versus $325.9 million in the year-ago period. Results reflect the inclusion of net sales of brands acquired from the Colomer Group in the first quarter.
Income from continuing operations were (net of taxes) $8.7 million, or 17 cents per share, compared with a loss of $4.5 million (net of taxes), or 8 cents per share, in the year-ago period.
In looking at the consumer segment, it was essentially flat as a result of market softness, while the professional segment had one of its best quarters ever, said Delpani during the company’s conference call on Wednesday.
“It’s worth noting that the consumer segment, albeit flat, benefited from a favorable return adjustment as we are reducing the quantity of new product launches. This is the result of the implementation of our fewer, bigger, better innovation strategy. Our strategy focus on more quality and less quantity of innovation and, therefore, we should see a lower level of returns going forward,” Delpani said.
The consumer segment, which posted sales of $339.5 million during the quarter, includes the results of retail brands acquired in the TCG acquisition, which represented $15.5 million of net sales in the first quarter.
In the United States, net sales were $250.2 million compared with $232 million of pro forma U.S. net sales in the first quarter of 2013, an increase of 7.8%. Higher net sales of CND Shellac and American Crew products during the quarter contributed to the increase.
Walmart joins CPG companies in helping to accelerate efficiency
BENTONVILLE, Ark. — Walmart has gathered CEOs from more than a dozen global companies to sign new commitments that accelerate innovation in sustainable agriculture and recycling. The pledges kicked off Walmart’s inaugural Sustainable Product Expo, a three-day collaboration to expand the availability of products that sustain people and the environment.
Together, the participating suppliers represent more than $100 billion in sales at Walmart.
Eight of the largest food companies announced pledges to help ensure that tomorrow’s food supply is affordable and sustainable for the 9 billion people projected to inhabit the planet by 2050. The commitments aim to drive more collaboration and efficiency across the current food system. In total, this work is expected to bring eight million acres of farmland into sustainable agriculture programs and eliminate six million metric tons of greenhouse gas emissions (GHGs).
Additionally, companies joined with Walmart and the Walmart Foundation to launch a recycling initiative called the Closed Loop Fund, with the goal of making recycling available to all Americans. The fund aims to invest $100 million in recycling infrastructure projects and spur private and public funding for transforming the recycling system in the United States.
“Walmart and our suppliers recognize that collaboration is the key to bringing sustainable solutions to all of our customers,” said president and CEO Doug McMillon. “A great deal of innovative work is happening every day, but there are still too many gaps and missed opportunities. Today’s commitments are about creating real systems change from one end of the supply chain to the other — meaning how products are grown and made, how they’re transported and sold, and how we touch the lives of people along the way.”
Leaders joining McMillon and Walmart executives in Bentonville, included:
- John Bryant, CEO and president, Kellogg Company;
- Rob Gehring, global account leader, The Coca-Cola Company;
- Hugh Grant, chairman and CEO, Monsanto;
- Fred Krupp, president, Environmental Defense Fund;
- Kees Kruythoff, president, North America for Unilever;
- A. G. Lafley, chairman of the board, president, and CEO, Procter & Gamble;
- Roberto Marques, company group chairman, Johnson & Johnson Consumer Family of Companies, North America;
- Denise Morrison, president and CEO, Campbell Soup Company;
- Indra Nooyi, chairman and CEO, PepsiCo;
- Monique Oxender, senior director, sustainability, Keurig Green Mountain;
- Greg Page, executive chairman of the board, Cargill;
- Ken Powell, chairman and CEO, General Mills;
- Carter Roberts, president and CEO, World Wildlife Fund;
- Peter Seligmann, chairman, CEO and co-founder, Conservation International;
- Rick Smith, president and CEO, Dairy Farmers of America;
- John Weinberg, vice chairman and co-head of the Investment Banking Division, The Goldman Sachs Group.
The expo highlighted several initiatives to further expand access to sustainable products and create more transparency in the supply chain. Together with Procter & Gamble, Walmart announced a commitment to a 25% reduction in water per dose for all liquid laundry detergent. In the area of fertilizer management, Walmart last year set a goal of optimizing 14 million acres of farmland with the potential to reduce 7 million metric tons of GHGs. Combined with progress already made, the new pledges announced today will help advance that goal by optimizing an estimated 10 million acres and eliminating 8.5 million metric tons of GHGs.
Working with Cargill, Walmart is developing a small-scale pilot focused on improved beef supply chain visibility, including increased traceability elements resulting in more visibility from farm to fork. This is part of Walmart’s goal to source 15% of its beef supply with environmental criteria by 2023. In collaboration with Conservation International and suppliers, Walmart has converted 27% of the palm oil used in its private-brand products from conventional to sustainable palm oil.
The expo also included updates from EPA experts on sustainable chemistry and presentations by McKinsey and EDF on new tools suppliers can use to scale factory energy efficiency.
Walmart also previewed plans to create a sustainability store on walmart.com. The shopping portal, expected to launch by the end of 2014, will allow customers to easily identify brands that are leading sustainability within a category via a special icon.
“No one should have to choose between products that are sustainable and products they can afford,” said Manuel Gomez, VP of sustainability. “We want to make sustainability easy by taking the guesswork out of values-based shopping. Accessibility and transparency really put the customer in the driver’s seat.”
This new online tool for customers and other initiatives to drive sustainability across the supply chain are based on metrics from the Sustainability Index. Since 2009, Walmart and many suppliers, stakeholders and competitors have worked with The Sustainability Consortium (TSC) to develop measurement and reporting systems for product sustainability, including the Index. The tools from TSC offer Walmart a common way to evaluate supplier performance and drive innovation. More than 700 product categories are now covered by the index.
Tony Civello receives Sheldon W. Fantle Lifetime Achievement Award at NACDS Annual
SCOTTSDALE, Ariz. — Recognized for his nearly five decades of service to pharmacy and chain drug store industry, Tony Civello, chairman, president and CEO of Kerr Drug was awarded the Sheldon W. Fantle Lifetime Achievement Award during the NACDS Annual Meeting.
Mark Griffin, president and CEO of Lewis Drugs, and Larry Merlo, president and CEO of CVS Caremark, presented the award to Civello Tuesday evening.
The Sheldon “Bud” W. Fantle Lifetime Achievement Award was established in 1989 to recognize exceptional accomplishments and contributions to the industry. Chain pharmacy’s highest honor, it was renamed in 1996 in honor of Bud Fantle of People’s Drug Stores.
Civello’s leadership spans nearly five decades serving the pharmacy and chain drug industry. As a student at the University of Pittsburgh’s School of Pharmacy in 1965, Civello worked in a part-time position with Thrift Drug and rose through the ranks to a senior executive during the next 30 years. Civello took the helm at Kerr Drug in 1996.
Furthermore, Civello joined the NACDS board of directors in 1998, and served as chairman from 2005 to 2007. He also served on the NACDS Foundation Board from 2003 to 2013.
“It is truly fitting that Tony receive chain pharmacy’s highest honor. ‘Bud’ Fantle was a mentor to Tony in his early days of pharmacy, showing him ‘the ropes’ in an industry that even then was evolving and changing rapidly,” said NACDS president and CEO Steve Anderson. “Always the selfless leader, Tony put the profession of pharmacy, his fellow employees, patients and customers first. And with an eye toward the future, he empowered many to rise to the challenge in becoming the next generation of pharmacists and industry leaders.”
To see photos from Tuesday’s awards presentation, click here.