Beauty and personal-care products maker Revlon Inc. posted increased revenue but booked a loss in the latest quarter as it works to integrate the purchase of a rival.
In September Revlon completed its acquisition of rival Elizabeth Arden Inc. The $420 million all-cash deal expands Revlon's presence in skin care and perfume, and gives it a broader geographic footprint.
Revlon took $33.5 million in acquisition and integration costs, swinging the company to a loss for the quarter. Chief Executive Fabian Garcia said he still expects the deal to result in $140 million in "multiyear synergies."
In all, Revlon reported a loss of $4.7 million in the third quarter, or 9 cents a share, down from a profit of $6.2 million, or 12 cents a share, a year prior.
Revenue grew 28% to $604.8 million, largely due to the deal.
On a pro-forma, currency-neutral basis, its consumer unit increased revenue 0.1% due to global consolidation of the Cutex brand, higher sales of Revlon beauty tools and Revlon color cosmetics but was largely offset by SinfulColors color cosmetics.
Its professional unit posted 4.5% growth due to Revlon professional hair products, including the launch of Revlon Professional Be Fabulous and American Crew men's grooming, partially offset by CND nail products.
Elizabeth Arden also grew 4.5% on color cosmetics and higher sales of designer perfume brands Juicy Couture, John Varvatos, Britney Spears and Curve.
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(END) Dow Jones Newswires
November 04, 2016 09:25 ET (13:25 GMT)
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