Revlon swings to loss in third quarter

Revlon said on Friday that it swung to a net loss in the third quarter on the back of acquisition and integration costs following its purchase of Elizabeth Arden earlier in the year.

For the quarter to the end of September, the company recorded a net loss of $4.7m compared to a profit of $6.2m in the same quarter last year. Revlon incurred acquisition and integration costs of $33.5m.

Still, revenue in the period was up 28.3% at $604.8m, while total adjusted earnings before interest, taxes, depreciation and amortisation were up 34.8% to $113.4m.

In the consumer segment, net sales in the third quarter were essentially flat compared to the same period a year ago, while net sales in the professional segment remained strong, up 4.5% from the third quarter of 2015.

Chief executive officer Fabian Garcia said: “During the third quarter we completed our acquisition of Elizabeth Arden and began to develop our new organizational structure that is designed to enable us to drive future global growth. We are making good progress on integrating the Revlon and Elizabeth Arden organisations and we have confirmed our ability to deliver at least the $140m of multi-year synergies and cost reduction estimates related to the transaction.

“We remain enthusiastic about the significant value creation opportunity presented by the combination of our companies and brands.”

At 1534 GMT, Revlon shares were down 3.3% to $31.05.