Revlon, Inc.

Revlon reported first-quarter 2022 as-reported net sales of $480 million, up from $445 million a year ago, an increase of 8%. As-reported operating income was $24 million versus an operating loss of $13 million in the prior-year quarter, and adjusted EBITDA was $58 million versus $38 million, up $20 million or 53%; adjusted EBITDA margin improved by 400 basis points. Gross margin improved by 190 basis points, and as-reported net loss narrowed to $67 million from $96 million. Segment sales were: Revlon $182 million (+15% constant currency), Elizabeth Arden $115 million (+4%), Fragrances $83 million (+13%), and Portfolio $99 million (+5%). Looking ahead, management did not give formal quarterly or full-year financial guidance on the call; instead, it said it remains focused on managing liquidity, selectively raising prices, and navigating supply-chain and macro uncertainty through 2022.

Debra Perelman framed the quarter as evidence that the business is executing well despite a difficult global backdrop, citing COVID lockdowns, the Russia-Ukraine conflict, supply-chain constraints, and inflation. She highlighted strong consumer engagement, growth in key brands, and new product launches, including Revlon’s ColorStay Matte Lite Crayon and Elizabeth Arden’s PREVAGE Anti-Aging Eye Serum 2.0. Her tone was confident but cautious, emphasizing agility, cost control, and a focus on long-term sustainable profitable growth.

Victoria Dolan emphasized financial discipline and liquidity management as the company’s core priorities in a volatile environment. She cited $480 million in sales, $24 million of operating income, $29 million of adjusted operating income, $58 million of adjusted EBITDA, and $4 million of free cash flow, along with $70 million of unrestricted cash, $65 million of borrowing capacity, and roughly $132 million of available liquidity at quarter-end. She also noted the amended ABL credit facility temporarily increases borrowing base capacity by up to $25 million until September 29, 2022, with a reserve of $10 million until June 29, 2022 and $15 million thereafter, and that the ATM program allows up to $25 million of equity issuance.

The analyst asked about lower SG&A, China exposure, and the innovation pipeline. Management said SG&A was managed aggressively, with overhead controlled and brand support allocated to the highest-return markets, while also re-evaluating spend to support brands where inventory was available. On China, management said the company performed well in Q1 but started seeing impact at the end of March into April from Shanghai shutdowns, particularly on Elizabeth Arden and on components, freight, and containers; on innovation, management declined to preview unreleased products and pointed to current launches that are already in market and performing well.