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(Reuters) – Revlon Inc said on Monday it expected to save up to $230 million a year by 2022 end, mainly by eliminating nearly 1,000 positions, in a bid to improve profitability even as it continues to explore options along with Goldman Sachs.
The cosmetics maker has been struggling to attract youngsters in a competitive market that houses several upstart brands, including actor Millie Bobby Brown’s Florence by Mills vegan cosmetics, and bigger companies such as L’Oreal and Estee Lauder.
Its sales has declined for at least five quarters. Revlon posted preliminary fourth-quarter revenue of $699.4 million, well below market estimates of $755.4 million, hit by weak demand for its fragrances and namesake products.
It said it expects to incur between $55 million and $65 million in charges in 2020, mainly due to severance and contract termination costs.
Its biggest shareholder MacAndrews and Forbes, the holding company through which billionaire Ronald Perelman owns about 87% stake in Revlon, had said in August last year that the cosmetics maker was exploring options for its business.
The company also said it has entered to an agreement with Jefferies Finance LLC for $850 million in new finance to repay senior loans due in February 2021 and 2019 term loan. The company had long-term debt of $2.91 billion as of Dec. 31.
Written by Praveen Paramasivam in Bengaluru; Editing by Arun Koyyur for Reuters