Revlon updates bankruptcy plans and reveals drop in full year sales
Revlon Inc. has reported a drop in sales for the fourth quarter and full year ending 31 December 2022 as it prepares to emerge from bankruptcy next month.
The company's net sales decreased 4.1% to £483 million ($589.8 million), compared to £504 million ($615.2 million) in the fourth quarter of 2021.
Adjusted EBITDA was £81.8 million ($99.8 million), compared to £88.9 million ($108.4 million). This was driven by lower net sales, offset by lower SG&A expenses.
Net loss totalled £146 million ($178.5 million), against a net income of £8.1 million ($9.9 million). This was attributed to charges related to the company's Chapter 11 bankruptcy filing, higher income tax provisions, and higher interest expenses.
For the full year, Revlon shared the following results:
- Net sales down 4.7% to £1.6 billion ($1.98 billion).
- Adjusted EBITDA of £213 million ($260.3 million), compared to £240 million ($292.9 million) in 2021.
- Net loss down 225.7% to £552 million ($673.9 million).
Revlon fell into bankruptcy in June 2022 after facing supply chain issues and large debt. At the time, the company said the filing would allow it to implement a financial restructuring of Revlon’s legacy capital structure and improve its long-term outlook.
The trading update has announced that last month Revlon Inc. entered into an amended and restated restructuring support agreement with its creditors and filed the plan with the US Bankruptcy Court.
Under the terms, the plan will reduce the company’s total debt by approximately £2.2 billion ($2.7 billion) and capitalise the company with approximately £1.1 billion ($1.4 billion) of new money debt and equity investments.
Revlon Inc. is expected to emerge from Chapter 11 bankruptcy as a privately held company. The plan also includes a global settlement of litigation claims by the company’s lenders.
A hearing to confirm the plan is scheduled for 3 April 2023, with Revlon Inc. expected to emerge from Chapter 11 bankruptcy in April 2023.
