Revlon Reports Fourth Quarter and Full Year 2021 Results; Strong operating income growth reflects Revlon’s continued execution against its strategic initiatives amid macro supply chain challenges

NEW YORKRevlon, Inc. (NYSE: REV) (“Revlon” and together with its subsidiaries, the “Company”) today announced its results for the quarter ended December 31, 2021.

Quarter ended December 31, 2021summary evolutions:1

As reported net sales were $615.2 million in the fourth quarter of 2021, compared to $626.6 million in the prior year period, a decrease of $11.4 millionor 1.8%.

As the reported operating result was $67.3 million in the fourth quarter of 2021, compared to $28.4 million in the prior year period, an improvement in $38.9 million. The increase in operating income was mainly due to an improvement in gross margin of 240 basis points, and $29.6 million lower selling, general and administrative (SG&A) expenses. Adjusted operating income for the fourth quarter 2021 increased by $0.9 million for $75.9 million from $75.0 million adjusted operating income for the prior year period.

Adjusted EBITDA(a) in the fourth quarter of 2021 was $108.4 millionvs $111.8 million in the period of the previous year. The decrease in adjusted EBITDA is mainly explained by the decrease in net sales as reported.

As the reported net income was $9.9 million in the fourth quarter of 2021, compared to a $233.8 million net loss for the prior year period. The increase in net income is mainly due to the prior year period reflecting a $201.8 million a non-cash charge to the Company’s federal tax valuation allowance and higher reported operating income compared to the prior year period.

From December 31, 2021the Company had total liquidity of $171.5 million.

Debra Perelman, Chairman and Chief Executive Officer of Revlon, said, “Consumer demand for our brands remained strong in the 4th quarter, as evidenced by Revlon Color Cosmetics’ retail sales growth of 30% year over year. other in the major mass distribution channel in the United States. While we saw strong consumer demand, we also continued to experience industry-wide supply chain issues, which impacted our ability to fully meet customer orders for support this consumption. Starting in the 3rd quarter, our business was impacted by rising prices for key ingredients and components, logistical challenges in all modes of transportation delaying receipt of goods, and continued labor shortages.

“We continued to take aggressive action to protect our business by closely managing our costs and implementing certain price increases. Additionally, we have re-routed some of our freight, significantly increased labor at our manufacturing facilities, and brought in additional suppliers for key materials and components, resulting in increased production levels of manufacturing at the dawn of 2022. Despite the broader challenges, we were able to drive a very strong gross margin improvement and operating result in the fourth quarter. We will continue to manage our business aggressively while remaining focused on executing our strategy to generate long-term profitable growth.

1 The results discussed include the following measures: we GAAP (“as reported”); and non-GAAP (“Adjusted”), which excludes certain non-operating items and EBITDA exclusions (as defined in footnote (a)) from reported results. See footnote (a) for further discussion of adjusted company measures. Reconciliations of reported and adjusted results are attached to this press release. In addition, where indicated, the Company analyzes and presents its results excluding the impact of foreign currency translation (“XFX”). Unless otherwise stated, discussion is presented on an as reported basis.

Fourth quarter 2021 results

Total company results: see the full press release at:

https://investors.revlon.com/news-releases/news-release-details/revlon-reports-fourth-quarter-and-full-year-2021-results

In calculating Adjusted Results, adjustments have been made for non-operating items and EBITDA exclusions in the case of Adjusted EBITDA, in each case as described in footnote (a).

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