Avon Reports Third Quarter Results for Latin America
Avon Products, Inc. today reported third-quarter 2010 total revenue of $2.7 billion, 4% higher than that of third-quarter 2009.
Latin America’s third-quarter 2010 revenue was up 8% year over year, or up 13% in constant dollars. On a reported basis, Brazil was up 14%, Mexico was up 18%, and Venezuela was down 24%. Constant dollar revenue growth was driven by growth of 7% in Brazil, 14% in Mexico and 52% in Venezuela. The region’s Active Representatives grew 8% and units sold were up 6%. Third-quarter operating profit was down 3%. Operating margin was 15.4%, or down 190 basis points from the third quarter of 2009. Excluding the impact of Venezuelan special items and restructuring costs, Latin America’s adjusted third-quarter operating profit was down 1%. Adjusted operating margin was 16.2%, down 160 basis points due to increased investment in RVP and advertising, as well as higher distribution costs.
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