Avon Products Inc reported that second-quarter 2007 total revenue grew 12% year over year (7% in local currency) to $2.3 billion. Sales of Beauty products rose 14% and Active Representatives increased 9%. Units sold in the quarter increased 7% versus the prior-year quarter.
Net income in the second quarter 2007 was $113 million, or $.26 per share, compared with $151 million, or $.33 per share in the year-ago quarter. The 2007 quarter included pretax costs to continue implementation of the company's Product Line Simplification program of $61 million and restructuring program of $21 million, compared with $49 million pretax costs to implement restructuring in the prior year. Additionally, the 2007 quarter included $71 million pretax for incremental funding of advertising and the Representative Value Proposition.
Andrea Jung, chairman and CEO, commented, "We are pleased with our strong performance again this quarter as our turnaround continues to gain traction. We are investing at significant levels in both advertising and the Representative Value Proposition. Clearly these growth investments are paying back, as evidenced by our 14% growth in Beauty sales and 9% growth in Active Representatives. We were particularly pleased that revenue increased over 30% in five of our key growth markets."
Sales of Beauty products recorded double-digit growth for a fourth consecutive quarter, increasing 14% (8% in local currency), powered by growth in all categories: fragrance up 21%, personal care up 19%, color cosmetics up 16% and skin care up 4%.
marketing@alchempro.com
