Revlon

Presented To

Sir Shahid Mehmood

Presented by

GROUP # 6

RVELON

GROUP NO. 6

SIDRA NOOR KHAN 11

NAZIA QAMAR 08

SHAHNEELA NAZ 40

AYSHA SAHAR 25

SHAHBAZ GHLIB 13

Introduction & Overview

SHAHBAZ GHALIB

ROLL NO 13

Overview • Introduction

• Products & Brands of Revlon

• Financial Analysis

• Competitor of Revlon

• SWOT Analysis

• Five Forces of Industry Competition

• Strategies of Revlon

Overview

• Revlon is a world leader in cosmetics, skin care, fragrance and personal care and is a leading mass market cosmetics brand. Our vision is to provide glamour, excitement and innovation through quality products at affordable prices.

Overview

• Our global brand name recognition, product quality and marketing experience have enabled us to create one of the strongest consumer brand franchises in the world, with our products sold in approximately 175 countries and territories. Revlon's brands include Revlon®, ColorStay®, New Complexion®, Revlon Age Defying®, Almay®, Ultima II® and Flex® and Charlie®.

History

• Revlon was founded in the midest of the Great depression, 1932, by Charles Revson and his brother Joseph, along with a chemist, Charles Lachman, who contributed the "L" in the REVLON name.

History

• Starting with a single product — a new type of nail enamel — the three founders pooled their resources and developed a unique manufecturing process. Revlon developed a variety of new shades of opaque nail enamel. Successful in salons from the start, in 1937 Revlon started selling the polishes in department stores and drug stores.

History

• In six years the company became a multimillion dollar organization. By 1940, Revlon offered an entire manicure line, and added lipstick to the collection. During World War II Revlon created makeup and related products for the U.S. Army, which was honored in 1944 with the Army-Navy ‘E’ Award for Excellence

Ownership

• MacAndrews & Forbes Holdings: 60%(74% of votes)

MacAndrews & Forbes Holdings, Inc. is the principalholding company used by and wholly owned by private equity investor, Ronald Perelman. MacAndrews & Forbes holds interests in a diversified portfolio of public and private companies

FMR Corp.: 20%

• Fidelity Investments is an investment company. It consists of two independent but closely cooperating companies, Fidelity Management and Research LLC (FMR LLC), founded in 1946 and serving North America, and Fidelity International Limited (FIL), spun off in 1969 and serving the rest of the world.

Corporate governance

• Current members of the board of directors of Revlon are: Alan Bernikow, Paul Bohan, Meyer Feldberg, Debra Lee, David Kennedy, Ronald Perelman, Linda Robinson, Barry Schwartz, Kathi Seifert, and Ken Wolfe.

David L. KennedyPresident and Chief Executive

Officer

Subsidiaries

• Domestic• Almay, Inc., a Delaware corporation • Charles of the Ritz Group Ltd., a Delaware corporation • Charles Revson Inc., a New York corporation • Cosmetics & More Inc., a Delaware corporation • North America Revsale Inc., a New York corporation • PPI Two Corporation, a Delaware corporation • Revlon Consumer Corp., a Delaware corporation

Products & Brands of Revlon

BRANDS OF REVLON

Revlon®,

ColorStay®,

New Complexion®,

Revlon Age Defying®,

Almay®,

Ultima II®

Flex® and Charlie®.

Products & Brands of Revlon

• Lips • Face

• Eyes

• Nails

• Hair Color

• Beauty Tools

LipsLips Products are lipstick lip glazelip linerlip shinercrème glossliquid lip stick.

Lips

FACE

PRODUCTSFace Matching MakeupSmoothing PremierPressed powderFinishing powderMatte powder blush

HAIR COLOR

PRODUCTSColor silkColor silk root perfect Frost & glowRevlon colorist

Shampoo & Gel

EYES

PRODUCTSMatte eye shadow Powder eye shadow Mineral eye shadowKohl eye linerLiquid eye pinEye pencil

NAIL

PRODUCTSNail EnamelNaturally ChicDaily wearColor allureCuticle removerGel nail hardener

BEAUTY TOOL

PRODUCTSEyes shapeCurlFinishPrep + shapeGroomSmooth + treat

FRAGRANCE

• PRODUCTSCharlieCiaraEnjoliFire& IceJean NateJontue

Body Spray

FINANCIAL STATEMENT AND RATIO ANALYSIS

Aysha sahar

ROLL NO 25

Financial Analysis

INCOME STATEMENT

Income Statement: REVLON

REVLON Financial Overview

  2008 2007 Change (2007 - 2008)

Net Sales/Revenues 1346M 1367M -21M

Gross Profit 855 M 861M -6 M

Net Income 57.9M -13.1M 71 M

Operating Income 155 M 118.4 M 36.67 M

Cash Flow:

Cash Flow:

  2008 2007 Change (2007 - 2008)

Net Cash Flow - Operating

21.3 2.5 18.5

Net Cash Flow - Investing

100.5 -17.6 118.5

Net Cash Flow/Financing

Activities

-112.3 24.5 -87.8

Net change in cash

7.7 9.9 -2.2

Balance Sheet:

Balance Sheet:

  2008 2007 Change (2007 - 2008)

Total Assets 813.4 M 889 M -78.6 M

Total Liabilities 1926.2 M 1971.3M 24.8 M

Shareholders Equity -1113 M -1082M 31 M

RATIOS ANALYSIS

Ratio Analysis

• Profitability Ratio

• Liquidity Ratio

• Activity Ratio

• Debt Ratio

ProfitabilityGross Margin 63.5%

Operating Margin 11.5%

Profit Margin 0.97%

Profitability

Return on Equity -5.20%

Return on Assets 16.37 %

Return on Investments

Liquidity ratio

Liquidity RatioQuick Ratio .84:1

Current Ratio 1.32:1

Cash Ratio .16:1

Activity RatioInventory turnover 3.18 times

Account receivable turnover 7.93times

Total asset turnover 1.65times

Days sales in Receivable 46 Days

Days sales in Inventory 114.6 Days

Debt Ratio

Debt Ratio

Debt Ratio

237%

Debt/Equity Ratio -119.48

Key Ratio :

Price/Earnings 1.13

Competitor Comparison

SIDRA NOOR KHAN

ROLL NO 11

Competitor Comparison

Competitor Comparison

Top Segment

Top Brand

CEO

Growth

Revenues

Revenue Growth

International

Business Segments

Employees

cosmetics Consumer care CG/Food

Revlon Tide Dove

David L.kendy

1346.8M

100+

A.G. Lafley

350000

9.25%

28200 m

19%

42

5

110000

A.Burgmans

15.58% 5.2%

42942M

-11.93%

100+ 100+

3

234000

2

42000

3

Avon

cosmetics

-8.70% -10.50% 10690m

0.72 %

Andrea Jung

April 8, 2023 GROUP # 4 57

April 8, 2023 GROUP # 4 58

April 8, 2023 GROUP # 4 59

Top Competitors Key Measures: REVLON

REVLON AVON P&G

Valuation

Price/Earnings 1.13 7.88 — 16.75

Per Share Data

REVLON AVON P&G

Last Dividend 0 $ 0.80 — 43.36

Revenue 1.35B 10.69B — 83.5 B

Profitability

Operating Margin 11.5% 13.10% — 22.13%

Profit Margin 0.97% 8.18% — 14.46%

Gross Profit Margin 63.5% 63.09% — 51.27%

REVLON AVON ------ P&G

GrowthNet Income 57.9M 875.30M — 12070 M

Revenue 1346M 10690M — 83500M

REVLON AVON

------ P&G

Quick Ratio .84 3.15 14.46

Current Ratio 1.32 7.07 0.69

LT Debt to Equity Ratio -117 83.73 32.45

ROE -5.20 7.93 17.34

ROA 7.11 5.69 10.61

ROIC (Return on Invested Capital) 5.2 8.22 12.51

REVLON AVON --------- PG

Financial Strength

Asset Turnover 0.82 0.67 0.58

Inventory Turnover 3.55 6.95 4.93

Assets

REVLON AVON ------------- P&G

SWOT ANALYSIS & PORTER MODEL

NAZIA QAMAR

Roll No.08

Strengths

Leader in mass-market cosmetic brand Strong relationship with retailersKnown Word Wide in nail Product Present in 175 Countries

Strengths

WeaknessesWeaknesses

Weaknesses Weaknesses

Too much focus on streamlining operations rather than improving revenues

Low spending on promotion and marketing Relatively low R&D spending <2% Most product has short life cycle as they rely on

color i.e. is nail polish

OPPERTUNITIESOPPERTUNITIES

Opportunities

New executive team appointed to boost sales Recently, more spending on ads and promotions McAndrews & Forbes financial support to

improve cash flow Create uniform images split up between world

wide region

Threats

Recently downgraded by S&P from CCC- to CC JC Penny cut cosmetics (incl. Revlon) out of

shelves due to low sales Divers marketing Strategies Need a global strategies to succeed around the

world Large financial losses makes an unstable

company

Five Forces of Industry Competition

Potential Entrants

Suppliers Customers

IndustryCompetitors

Rivalry AmongExisting Firms

Bargaining power of suppliers

Bargaining power of suppliers

Threat of new entrants

Threat of new entrants

Bargaining power of customers

Bargaining power of customers

Substitutes

Threat of substitute products

or services

Threat of substitute products

or services

Internal Rivalry

Internal rivalry

Internal rivalry in the cosmetic industry is high. There are a lot of existing cosmetic companies competing in the market. The environment endorses giant corporations to acquire numerous brand name products.

Threat of new entry

Threat of entry

Threat of entry is high. To build a cosmetic company requires a significant amount of capital investments, associated with research and development (R&D) and marketing expenditures. Cosmetic companies are no different than drugs companies. There are a lot of regulations and requirements imposed by the government to launch a single product. This is due to a high level of direct contact between cosmetics products

and human body.

Products substitutes

Products substitutes are not available in the market. Products complements are high. Beauty tools (brush, mirror, cottons ball, etc.) are needed to complement most of cosmetics products. The price of product complements will definitely affect the sales of cosmetics products.

Buyer

Buyer

Buyer (i.e. consumer) power is high, since there are a variety of cosmetics products available in the markets, ranging in price. All firms are competing to attract consumer’s attention by providing the best quality, most stylish, and great price.

Supplier

Supplier

Supplier power ranges from low to medium. Owing to a lot of merging and acquisitions, the monopoly in the cosmetics industry will be huge in the future. If the industry is becoming monopolized, therefore, suppliers will have low power, where they will compete tightly in order to get the biggest piece of share.

STRATEGIES AND RECOMMENDATION

SHAHNEELA NAZ

ROLL NO 40

STRATEGIES

• Building and leveraging our strong brands.• Improving the execution of our strategies and plans

and providing for continued improvement• in our organizational capability through enabling

and developing our employees.• Continuing to strengthen our international business.• Improving our operating profit margins and cash

flow.• Continuing to improve our capital structure.

Building and leveraging our strong brands.

in our organizational capability through enabling and developing our employees.

Continuing to strengthen our international business.

Improving our operating profit margins and cash flow.

Continuing to improve our capital structure.

April 8, 2023 GROUP # 4 94

Revlon, Inc. conducts its business through its direct wholly owned operating subsidiary, Revlon Consumer Products Corporation and its subsidiaries (Products Corporation), which manufactures markets and sells an array of cosmetics, skincare, fragrances, beauty tools, hair color and personal care products. The company is a mass-market cosmetics brand.