Avon Products Inc. (NYSE:AVP) Q1 2018 Earnings Conference Call Transcript

May 03, 2018 • 09:00 am ET

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Avon Products Inc. (NYSE:AVP) Q1 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good morning. My name is Dorothy, and I will be your conference operator today. At this time, I would like to welcome everyone to Avon's First Quarter Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers remarks, there will be a question-and-answer session. (Operator Instructions)

The Company will use slides to support today's prepared remarks. The slides will be visible via the webcast available on the Company's IR website. A downloadable PDF of the presentation will be made available at the end of the call.

During the call today, the Company will reference certain non-GAAP financial measures, which they believe to be useful to investors, although they should not be considered superior to the measures presented in accordance with GAAP. You will note that the Company has prospectively adopted the new revenue recognition accounting standard. To provide a fair comparison, information will be shared excluding the impact of the standard. This information is labeled like-for-like. A reconciliation of these non-GAAP financial measures to their comparable GAAP measures is included in the appendix of this webcast and in the Company's earnings release. Both are located on the IR section of the Company's website.

(Forward-Looking Cautionary Statements)

I will now turn the conference over to Connie Weaver, IR. Ms. Weaver, you may begin your conference.

Executive
Connie Weaver

Thank you, Dorothy, and good morning to everyone. Thank you for joining us to review Avon's First Quarter 2018 Results. I'm here with our CEO, Jan Zijderveld; and also with Jamie Wilson, EVP and CFO. Jan and Jamie will take you through our first quarter results and then we'll move into a Q&A period.

So with that, let's get started and let me hand things over to Jan.

Executive
Jan Zijderveld

Good morning, and thanks, Connie. On today's call, I'm going to take some extra time to share some of my early observations from my first 100 days at Avon in addition to covering our first quarter results. Let me start with a few comments on Avon's first quarter performance. Overall, Avon's like-for-like first quarter results are simply unsatisfactory including a revenue decline of 4% largely driven by continuing declines in Brazil. This performance is unacceptable and significant changes need to be made. We are moving with renewed sense of energy and urgency taking decisive steps to address both the short-term and long-term issues that will enable us to leverage the underlying potential of the business and remain relevant and competitive.

We are taking a comprehensive review of the Company's core operations starting in key markets. Our efforts are about balancing short-term critical fixes, plugging the leaks and making the right decisions for our business in the long-term, making the boat go faster. This means having the right prioritization and sequencing will be critical to turn around the business. I've assigned end-to-end responsibility for these initiatives to members of my team. My primary responsibility is getting Avon on the sure-footing that will enable it to regain a competitive market position.

Let me