In an effort to “increase communications with the investment community,” Avon Products Inc. has posted a presentation to its web site that provides an overview of the company’s position in the direct selling and beauty industries.
The 130-year-old company has $6 billion in net sales, six million active representatives and sales in 57 countries and territories, with distribution in 15 more countries. Avon’s top 10 markets make up about 70 percent of its revenues, the business said. In the presentation, Avon broke down its sales by region, with Europe, the Middle East and Africa bringing in 37 percent of sales, about $2.22 billion, South Latin America accounting for 36 percent of sales, about $2.15 billion, North Latin America bringing in 15 percent with $880 million, and Asia-Pacific accounting for 10 percent of sales with $600 million.
The brand also highlighted its transformation plan, a three-year initiative under which Avon plans to save $350 million. Part of the strategy includes growing the top 40 of Avon’s 275 brands, which make up 80 percent of revenues, the company said in the presentation. Avon also plans to consolidated disjointed brands into one “brand block” and harmonize packaging and ingredients — moving from multiple packaging looks and brand names to one type of packaging under the name Avon Classics, according to the presentation.
The business also highlighted growth in direct selling, saying the industry has grown at 5 percent annually for the past five years, reaching $131 billion in size for 2015. There are more than 100 million direct-selling representatives, according to Avon’s presentation. Avon’s representatives make up about 8 percent of the direct-selling salesforce, the company said.
The presentation comes after Avon’s spin-off of its North America unit in a sale to Cerberus Capital Management that closed in March. Following the sale, Avon posted a net loss of $165.9 million, compared with a loss of $147.3 million for the prior-year period. Those numbers included Avon’s loss from discontinued operations, including the North America unit, which totaled $9.6 million.