Q1 Profits Fall, Sales Rise at Avon

Avon’s first-quarter profits declined as a result of restructuring costs and a devaluation of Venezuela’s currency. Still, the company reported a double-digit increase in sales.

Net profits attributable to the direct beauty merchant plunged 64% to $42.5 million. However, revenues for the three months ended March 31 rose 13.9 percent to $2.49 billion from $2.19 billion.

“We are pleased with the continued top-line momentum across most of our regions in the quarter, supported by our continuing investments in advertising and representative value proposition,” said Andrea Jung, chairman and chief executive officer. “This is the second quarter in a row where Latin America and our two European segments, which comprise approximately 70% of our sales, grew constant-dollar sales at a rate of 15%.”