Avon Products today reported fourth-quarter and full-year 2012 results. The company's fourth quarter revenue was down 1% (up 1% in Constant Dollars); fourth quarter operating profit was $11 million, with an adjusted Non-GAAP of $277 million; and full-year cash from operations was $556 Million.
"2012 was a challenging year for Avon, but I'm encouraged to see that the overall business is showing early signs of stabilization," said Sheri McCoy, CEO. "We have a lot of work ahead of us, but I am confident that in 2013, we will see progress against our three-year financial goals."
For the fourth quarter, total revenue of $3.0 billion decreased 1%, but increased 1% in constant dollars.
Total units grew 2% and price/mix decreased 1% during the quarter. Active Representatives were up 1%.
Avon Beauty sales declined 2%, or increased 1% in constant dollars. On a reported basis, fragrance was flat, color and personal care both declined 1% and skincare declined 5%. On a constant-dollar basis, fragrance and color both increased 2%, personal care increased 1% and skincare declined 2%.
For the full 2012 year, total revenue of $10.7 billion decreased 5%, or was flat in constant dollars.
Total Beauty sales declined 5%, or increased 1% on a constant-dollar basis. Active Representatives declined 1% and units sold were flat.
Operating profit of $315 million decreased 63% and operating margin was 2.9%, down 470 basis points. Adjusted Non-GAAP operating profit was $693 million, down 40%, and adjusted Non-GAAP operating margin was 6.5%, down 380 basis points from a year ago.
Full-year loss from continuing operations was $38 million, or $0.10 per share, compared with income of $526 million, or $1.20 per share, last year. Adjusted Non-GAAP income from continuing operations was $373 million, or $0.85 per share, compared with $719 million, or $1.64 per share.