Avon total revenue slips 1% in Q4 2012

Beauty products direct selling company Avon has reported a 1% decline in total revenue to $3bn in the fourth quarter ended 31 December 2012, as against $3.04bn for the same quarter in 2011.

The firm’s net sales for the current quarter decreased by 1% to $2.95bn, down from $2.99bn during the corresponding period in 2011.

Avon reported a net loss of $162.2m for the fourth quarter, compared to a net income of $0.4m for the fourth quarter in the previous year.

Avon chief executive officer Sheri McCoy said the firm faced challenges in the fourth quarter which had a negative impact on the results, but the firm is planning for its early signs of stabilisation.

"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," McCoy added.

The firm’s total revenue from the Latin American region increased by 2% for the fourth quarter to $1.33bn, majorly registered by the company’s operations in Mexico, which was up by 9%.

Avon’s total revenue in the fourth quarter from the Europe, Middle East and African (EMEA) region was up by 1% to $905.8m.

The firm’s North American total revenue declined by 12% in the quarter to $516.2m, and the Asia Pacific region also posted a 3% decrease in total revenue to $246.6m.

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.