Avon total revenue down by 8% in Q3 2012

Beauty products direct selling company Avon has reported a 8% decline in total revenue to $2.55bn in the third quarter ended 30 September 2012, as against $2.76bn for the same quarter in 2011.

The firm’s net sales for the current quarter decreased by 6% to $2.50bn, down from $2.70bn during the corresponding period in 2011.

Avon reported a net income of $32.6m for the third quarter, compared to $165.2m for the third quarter in the previous year.

Avon chief executive officer Sheri McCoy said the firm faced challenges in third-quarter which had a negative impact on the results.

"However, we have identified the first critical actions to return Avon to a position of financial health and improve our competitive position. With a clear focus on growing the top-line, managing costs, and improving our working capital, I am confident that we are moving Avon toward a steady recovery," McCoy added.

The firm’s total revenue from the Latin American region declined by 6% for the third quarter to $1.27bn, majorly due to losses posted by the company in Brazil, which was down by 19%.

Avon’s total revenue in the third quarter from the Europe, Middle East and African region was down by 11% to $620.7m.

The firm’s North American total revenue declined by 8% in the quarter to $443.6m, and the Asia Pacific region also posted a 8% decrease in total revenue to $215.7m.

Avon Products is a US-based personal care products manufacturer and seller company, which operates in more than 140 countries across the world.

The firm’s portfolio includes product ranges, such as fragrances, skin care, makeup, colour compacts and personal care.