Sales growth helps Revlon into profit

Revlon has moved further down the road to recovery reporting strong preliminary financial results for the second quarter.

The bottom line experienced the greatest transformation as a net loss of $11.3m in the equivalent quarter in 2007 became a net profit of $20m this year.

Strong sales growth helped return the company to the black.

Make-up launches boost sales

Net sales rose 8 percent to $375m due largely to higher shipments of color cosmetics following a number of new product launches, according to Revlon.

Favorable exchange rates also played a role but organic growth was still high at 6 percent.

Margins widened during the quarter as operating profit jumped from $16.9m to $60m.

Apart from higher sales the operating figures were helped by the non-recurrence of marketing expenditure to support the launch of Revlon Colorist in the second quarter of 2007.

A helping hand was also given by the sale of a facility in Mexico.

The net gain was $6m but over the course of the year the company expects to incur charges and restructuring expenses from the sale that will take $2m off this figure.

CEO reports continued progress

Commenting on the results Revlon president and CEO David Kennedy said: "We have demonstrated continued progress in the first half of the year."

The results beat market expectations, according to Associated Press.

The press agency said analysts surveyed by Thomson Financial had predicted a net loss of 2 points per share. Revlon actually reported a profit of 4 points per share.