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Cosmetic Company Avon comments on restructuring program
25 Feb '06
3 min read
Advertising is forecasted to increase 50 percent in 2006 alone and to more than double from 2005's level by 2008.
Beyond the transition year of 2006, Avon said it will seek to contain overhead expenses in line with or below the prior-year's level to further improve profitability and enable ongoing reinvestment in the business.
The company reiterated that it projects revenue to be flat to up slightly in 2006, and forecasts revenue growth in local currencies that will average mid-single digits after 2006.
Andrea Jung, Chairman and CEO, commented, "They are encouraged by the progress they are making as they implement the early phases of their turnaround plan.
With the costs and benefits now fully sized, they are focused on the proper sequencing of initiatives to ensure successful execution.
The organization is fully aligned behind their plan and committed to this important task, and they are confident that they are taking the necessary steps to restore Avon to sustainable growth."
Jung is expected to discuss these plans at the Consumer Analyst Group of New York conference today in Scottsdale, Ariz.
The presentation will be webcast live beginning at 10:15 A.M. Eastern time, and can be accessed at Company's website.
Avon, the company for women, is a leading global beauty company, with over $8 billion in annual revenue. As the world's largest direct seller, Avon markets to women in well over 100 countries through over five million independent Avon Sales Representatives.
Beyond the transition year of 2006, Avon said it will seek to contain overhead expenses in line with or below the prior-year's level to further improve profitability and enable ongoing reinvestment in the business.
The company reiterated that it projects revenue to be flat to up slightly in 2006, and forecasts revenue growth in local currencies that will average mid-single digits after 2006.
Andrea Jung, Chairman and CEO, commented, "They are encouraged by the progress they are making as they implement the early phases of their turnaround plan.
With the costs and benefits now fully sized, they are focused on the proper sequencing of initiatives to ensure successful execution.
The organization is fully aligned behind their plan and committed to this important task, and they are confident that they are taking the necessary steps to restore Avon to sustainable growth."
Jung is expected to discuss these plans at the Consumer Analyst Group of New York conference today in Scottsdale, Ariz.
The presentation will be webcast live beginning at 10:15 A.M. Eastern time, and can be accessed at Company's website.
Avon, the company for women, is a leading global beauty company, with over $8 billion in annual revenue. As the world's largest direct seller, Avon markets to women in well over 100 countries through over five million independent Avon Sales Representatives.
Avon Products Inc
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