Medical aesthetic products. Revlon Q4 2022: Sales plunge a further 4 percent as Chapter 11 proceedings continue

THE WHAT? Revlon has reported its results for the fourth quarter of fiscal 2022. The US make-up manufacturer saw net sales dip 4.1 percent to US4589.8 million in the three months to December 31, 2022 versus the same period a year ago. For the full year, sales were down 4.7 percent to US$1980.4 million.

THE DETAILS As Reported net loss was US$178.5 million in the fourth quarter of 2022, versus US$9.9 million in the prior-year period. The company said the higher net loss was primarily driven by US$172.7 million of charges related to the its Chapter 11 filing.

The drop was felt most keenly in the Revlon segment with profit plummeting from US$41.5 million in Q4 2021 to US$26.9 million in Q4 2022. Elizabeth Arden reported a slight increase from US$20.7 million to US$20.7 million while the Portfolio segment delivered flat growth and Fragrances grew from Q4 2021’s US$21.5 million to US$26.4 million in Q42022.

THE WHY? As its ongoing Chapter 11 proceedings prove, Revlon has been struggling for some time. The company’s Debtors filed their proposed plan of reorganization with the US Bankruptcy Court for the Southern District of New York in late February and a hearing to confirm the Plan is currently scheduled for April 3, 2023 and the Debtors are expected to emerge from Chapter 11 bankruptcy in April 2023 as a privately held company.

Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.

Examples of medical aesthetic products include:

• Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.

• Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.

• Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.

• Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.

• Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.

• Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.

• Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.