MAV Beauty Brands sees 2020 revenue boost, names interim CFO
Vaughan, Ontario-based personal care group MAV Beauty Brands Inc. announced on Wednesday a full year 2020 revenue increase of 7.4 percent.
For the year ended December 31, 2020, the company, which owns the Marc Anthony True Professional, Renpure, Cake Beauty and The Mane Choice brands, reported total revenues of $116.5 million.
This growth reflected the contribution of The Mane Choice, acquired by MAV at the end of fiscal 2019, as well as strong sales in the company’s North America business.
MAV’s revenues in North America, a region which accounts for around 95 percent of the company’s total sales, reached $110.5 million in 2020, up 9.5 percent from 2019, partially offset by a 20 percent decline in sales from international markets, which were predominantly affected by Covid-19 related closures.
However, the company managed to remain profitable in 2020, reporting net income of $6.5 million in 2020, up from $4.1 million in 2019.
Revenue for Q4 2020 decreased to $23.8 million from $30.8 million last year, reflecting Covid-related factors, which negatively impacted fourth quarter results in certain categories.
The overall haircare category in U.S. food, drug, and mass ("FDM") retailers experienced a single digit sales decline in Q4 2020, the largest decline of any quarter in 2020.
Still, the company's e-commerce results were robust, as was revenue from international customers, which increased by 72.8 percent to $1.6 million, compared to $0.9 million in Q4 2019 in Q4.
"Despite an uncertain and extraordinary environment in retail, our business remained solidly profitable and generated healthy free cash flow in 2020," said Tim Bunch, chief executive officer of MAV Beauty Brands.
"Although Covid negatively impacted our results, as it did the total market, the resilience of our business underscores the durability of our categories, the strength and diversification of MAV's portfolio, and the benefit of our asset-light operating model. We were able to quickly react to capitalize on robust online demand, resulting in sales from e-commerce channels more than doubling over 2019."
The company also announced that, effective May 10, 2021, Judy Adam will resign her position as chief financial officer of the company, and Niv Majar, the vice president of finance, will assume the position of Interim chief financial officer until a replacement is found.
The company previously shared that its board has initiated a strategic review process to identify, review and evaluate potential strategic alternatives that may be available to the company.
Products from MAV’s brands are currently sold in more than 30 countries around the globe, in more than 100 of the world’s largest retailers.
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