Avon Products Inc. total revenue of $3.0 billion decreased 4%, or 1% in constant dollars for the fourth-quarter, according to the company.Total units declined 2%, while price/mix was a benefit of 1% during the quarter. Active representatives were down 3%. Selling, general and administrative expense in the quarter increased as a percent of revenue by 2% versus fourth-quarter 2010, and increased 3% on an adjusted non-GAAP basis due to higher distribution costs, bad debt expense, and investments in Representative Value Proposition. Avon invested an incremental $35 million in RVP in the fourth quarter of 2011 in Sales Leadership and higher incentives. During the quarter, the Company took a non-cash charge of $263 million, or $0.38 per diluted share, to adjust goodwill and an intangible asset related to the acquisition of Silpada Designs Inc. The non-cash impairment charge was largely driven by the rise in silver prices since the acquisition and the negative impact on Silpada’s revenues and margins. Operating profit was $13 million in the quarter and operating margin was 0.4%, significantly impacted by the Silpada impairment charge. While Latin America fourth-quarter 2011 revenue moderately increased, other regions including Brazil, North America, Central & Eastern Europe, Western Europe, Middle East & Africa’s and Asia Pacific, decreased.

“Despite a challenging fourth quarter, 2011 revenue was up 4% (1% in constant dollars) to $11.3 billion. Adjusted operating profit for the year was $1.16 billion and cash from operations was $656 million. While 2012 is a year of transition and we are not planning for margin recovery, our priorities are to improve top-line performance, cost management, and cash generation,” said Andrea Jung, Avon’s chairman and chief executive officer. Additionally, the company plans to maintain its annual $0.92 dividend in 2012. As previously announced, the company is conducting an operational and financial assessment of the business and searching for a new CEO.