Revlon, which posted net sales of $1.91 billion for 2015, a 4.9 percent increase when adjusted for currency effects, is losing another chief executive officer.
Lorenzo Delpani said that for “personal reasons” he would step down as ceo from Tuesday. He will remain on Revlon’s board of directors and as a paid adviser.
He added that he’s been working nonstop since he was 21, with the Colomer Group and then to integrate Colomer back into Revlon. “I think I’ve completed the cycle and I want to take a break and focus on myself and my family,” he said. Delpani said Revlon would appoint a new ceo “soon.”
Delpani came onboard as ceo in October 2013 following Revlon’s $660 million acquisition of Colomer, where he improved performance under private equity firm CVC Capital Partners. Before Delpani, Alan Ennis was ceo starting in 2009, and before Ennis, David Kennedy was ceo.
Though Delpani’s news comes shortly after Revlon’s majority owner MacAndrews & Forbes, headed by Revlon chairman Ronald Perelman, said it would consider strategic alternatives for the business, he said it was not related. “I’m leaving for personal reasons and it has nothing to do with the announcement that MacAndrews & Forbes has made,” he said. “That announcement is a MacAndrews announcement and we won’t comment on that.”
The beauty company revealed Delpani’s exit in reporting a sharp turnaround in profits for the fourth quarter and year. Net income for the three months ending Dec. 31 rose to $24.8 million from $2.7 million a year earlier. Sales in the quarter rose $521.9 million, up 4.2 percent, or 9.8 percent if adjusted for currency effects. Revlon’s stock was trading up 10.8 percent to $34.55 in mid-day trading.
Because of its exit from Venezuela in the second quarter, Revlon brought in $1 million in net sales from the region for 2015, compared with $16.3 million the prior year. For the year, Revlon reported net income leaped 37.2 percent to $56.1 million from $40.9 million. Sales fell 1.4 percent to $1.91 billion due to currency effects. At constant currencies, they rose 4.9 percent, compared with full-year net sales of $1.94 billion in 2014. The April acquisition of CBBeauty Group added $28.4 million to adjusted net sales, the company said.
Earnings per diluted share totaled $1.07 for 2015, compared with $0.78 for 2014.
Revlon’s adjusted earnings before interest, tax, depreciation and amortization was $125.6 million for the fourth quarter, a 16.4 percent increase over the prior-year period. For the full year, adjusted EBITDA was up 3.4 percent to $377.5 million.
Delpani said that “2015 ended with a very successful fourth quarter for both our consumer and professional segments. The company has reinvigorated our key brands and increased our profitability. At the same time, we successfully integrated the Colomer business into the combined company and reduced our cost base.”
Executive vice president and global president of Revlon’s consumer division Gianni Pieraccioni has been appointed chief operating officer.
Revlon’s consumer division had about $1.4 billion in net sales, with $360 million in profit for 2015, up 3.7 percent and 8.8 percent respectively when adjusted for currency effects. The professional segment posted $471.1 million in net sales for the year, up 2.4 percent on a constant-currency basis, and profits of $103.9 million, up 2.7 percent when adjusted for currency effects.
Revlon color cosmetics and Mitchum antiperspirant deodorants drove sales in the consumer segment, offset by lower sales from Almay, while American Crew men’s grooming products and Revlon Professional hair care added to sales in the professional division.