Avon Products, Inc. (the “Company”) filed its results for fiscal year ended December 31, 2019 today. The Company continued to execute against its Open Up Strategy throughout 2019, making good progress driving Adjusted Operating Margin up 100 basis points to 5.6% on increasing price/mix and Average Representative Sales while reducing cost. Free Cash Flow for fiscal 2019 improved $165 million. All of this sets a strong foundation for future growth. As anticipated, revenues declined in the fourth quarter and full year as a result of sharper choices made to drive a healthier, more sustainable and profitable business. 2019 saw more innovation at higher price points, the restoration of field fundamentals and lower bad debt. The rollout of digital tools was accelerated in the year and the Company increasingly leveraged the use of influencers, bloggers and social sellers. On January 3, 2020, Natura &Co completed the acquisition of Avon, creating the fourth largest pure-play beauty company. Natura &Co is committed to continuing the Open Up Avon strategy and working with Avon’s management team to drive brand equity while working to restore growth to Avon. Natura &Co is scheduled to hold their earnings presentation on March 6, 2020. The portion of their presentation that relates to Avon’s earnings is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit 99.1 Earnings Presentation

AVON PRODUCTS INC Exhibit
EX-99.1 2 avon2019earningsslides.htm EXHIBIT 99.1 avon2019earningsslides Avon FY 2019 Performance and Strategy Review A year of execution with deliberate actions and visible progress to date CREATING REBOOTING INCREASING SIMPLIFYING VALUE DIRECT SELLING ACCESS Restoring Improving Average Accelerating Drive down cost Brand Rep Sales and Digitalizing and improve Relevance stabilizing Active Reps the business margin and Cash Price / Mix Average Rep Sales Digital tools Free Cash Flow +8% +4% acceleration +$164mm vs -$1mm in PY C$ Adj. Revenue1 -6%,…
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About Avon Products, Inc. (NYSE:AVP)

Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The Company’s product categories are Beauty, and Fashion and Home. Beauty consists of skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative products, housewares, entertainment and leisure products, children’s products and nutritional products. The Company’s segments are based on geographic operations and include commercial business units in Latin America; Europe, Middle East and Africa, and Asia Pacific. The Company’s business is conducted primarily in one channel, direct selling. The Company’s products include Anew Clinical Overnight Hydration Mask, Anew Power Serum, Ultra Color Indulgence Lip Color, SuperExtend Winged Out Mascara, Big & False Lash Volume Mascara, Outspoken Party! by Fergie Fragrance and Avon Attraction for Him and for Her Fragrances.