Avon 2011 And 4th Quarter Earnings Report

by Kurt on

Avon 2011 And 4th Quarter Earnings Report

Recently, Avon, the one of the absolute biggest MLM Companies internationally reported their 4th quarter 2011, and full 2011 earnings.

For the 4th quarter itself, revenue was at roughly $3 Billion , which was a 4% decrease.  Associated with that decrease was a decrease in total unit sales, which was down 2%.

According to Andrea Jung on their site:

“Despite a challenging fourth quarter, 2011 revenue was up 4% (1% in constant dollars) to $11.3 billion. Adjusted operating profit for the year was $1.16 billion and cash from operations was $656 million. While 2012 is a year of transition and we are not planning for margin recovery, our priorities are to improve top-line performance, cost management, and cash generation. Additionally, the company plans to maintain its annual $0.92 dividend in 2012

What is interesting here is that total revenue in 2011 was actually up for the year, while the 4th quarter was down, which can point to alot of things, but at the same time they are maintaining that they will keep their annual dividend at $.92 per share.

All of this points to, and alluded to in the article that while Avon is still an enormous brand, and their dividends are remaining steady, there is a bit of trouble at the big brand, as indicated by the decrease in revenue in 4th quarter.

Many analysts actually called it a huge miss by the MLM Giant, as as their actual earnings came in at $.39 per share versus expected earnings of $.51 per share you can see in the video below.

Closely associated with this that the company hired McKenzie (a consulting firm) to help with an internal re-structuring and potential layoffs at corporate headquarters.

What do you think of all of the news about Avon?

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