LONDON, Sept. 21, 2018 /PRNewswire/ -- At its 2018
Investor Day, Avon Products, Inc. (NYSE: AVP) today provided
certain financial initiatives and investment targets by 2021,
driven by the execution of its new strategy to Open Up Avon and
return to growth.
As outlined in today's presentation, Avon's priorities include rebooting the
Company's direct selling proposition, modernizing the brand,
unlocking digital and e-commerce capabilities and driving a
performance-led culture.
Cost savings: by 2021, totaling a targeted $400 million generated from four primary
sources:
- Manufacturing & Sourcing: Manufacturing footprint
optimization, outsourcing and targeted sourcing efficiencies;
- Distribution and General & Administrative: Rationalization
of the distribution footprint, outsourcing and targeted general and
administrative efficiencies;
- Back Office: Zero based redesign of back office functions,
reduction of certain facilities, real estate and other
discretionary spend optimization; and
- Revenue management, interest and tax.
Investments in Commercial initiatives and Digital & IT
infrastructure: potentially totaling approximately $300 million, allocated as follows:
- Commercial initiatives:
-
- Reinvest in Representative training and recognition;
- Avon brand modernization initiatives;
- Restore competitiveness within Core categories; and
- New categories and markets.
- Digital & IT infrastructure initiatives, including:
-
- Modernized systems environment;
- Digital talent; and
- Digital tools and analytics.
Continued focus on strengthening the balance sheet:
Following the cost savings initiatives, the Company's cash
generation should exceed its investment plans. Accordingly,
Avon does not anticipate
increasing its debt position and will remain focused on reducing
debt.
"We believe that our strategy to Open Up Avon will enable the
Company to stabilize our financial results and achieve our goals of
low-single digit revenue growth and low double-digit margins by
2021, delivering on our commitment to shareholders," said
Jan Zijderveld, Avon CEO. "We
believe that being 'Fit for Purpose' across our manufacturing,
distribution and back office structures can yield substantial
savings that can be prudently reallocated to fuel innovation,
important infrastructure improvements and ultimately grow our
business."
The Company provided additional details on its financial
priorities and expectations today during its Investor Day
presentation. The Company also provided an infographic regarding
its presentation. Those wishing to replay the webcast and view the
infographic can do so at www.avoninvestor.com. The replay and the
presentation materials will be available at the same website.
About Avon Products, Inc.
Avon is the Company that for 130 years has
proudly stood for beauty, innovation, optimism and, above all, for
women. Avon products include
well-recognized and beloved brands such as ANEW, Avon Color, Avon
Care, Skin-So-Soft, and Advance Techniques sold through
approximately 6 million active independent Avon Sales
Representatives. Learn more about Avon and its products
at www.avoncompany.com.
Forward-Looking Statements
This material contains
"forward-looking statements" that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, including statements relating to revenue trends, cost
savings, efforts to implement new digital and e-commerce
strategies, improved Representative engagement and service, product
launches and commercial and digital spend. Because forward-looking
statements inherently involve risks and uncertainties, actual
future results may differ materially from those expressed or
implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to, the possibility of
business disruption, competitive uncertainties, and general
economic and business conditions in Avon's markets as well as the other risks
detailed in Avon's filings with
the Securities and Exchange Commission. Avon undertakes no obligation to update any
statements in this material after it is posted to the Investor
Relations section of our website.
Contacts
INVESTORS:
Amy Greene
Vice President, Investor Relations, Avon Products, Inc.
914-935-2172
amy.greene@avon.com
MEDIA:
Chris Wermann
Group Vice President and Chief Communications Officer, Avon
Products, Inc.
+ 44(0) 7867185442
Chris.Wermann@avon.com
View original
content:http://www.prnewswire.com/news-releases/avon-products-presents-financial-initiatives-and-investments-at-investor-day-300716857.html
SOURCE Avon Products, Inc.