In Europe, Middle East and Africa, net sales in 2012 were $184.4 million, a decrease of $24.3 million, or 11.6%, compared to $208.7 million last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales decreased $8.9 million, or 4.3%. Net sales were adversely impacted by: (i) the previously announced higher sales returns accrual of $1.6 million associated with restructuring and related activities in France and Italy; (ii) lower net sales of fragrances in the U.K. and certain distributor territories; and (iii) lower net sales of other beauty care products throughout the region. These decreases were partially offset by higher net sales of Mitchum anti-perspirant deodorant in the U.K. and Revlon ColorSilk hair color in South Africa, Italy and certain distributor territories.
In Latin America and Canada, net sales in 2012 were $203.0 million, an increase of $21.1 million, or 11.6%, compared to $181.9 million in the same period last year. Excluding the unfavorable impact of foreign currency fluctuations, net sales increased $28.0 million, or 15.4%. The increase was primarily due to higher net sales of Revlon and Almay color cosmetics and Revlon ColorSilk hair color throughout the region. Net sales in Venezuela and Argentina benefited from higher selling prices reflecting market conditions and inflation, which accounted for approximately one-third of the $28.0 million net sales increase in the region. Venezuela’s increase in net sales was also impacted by the absence of sales for a portion of 2011 as a result of the June 5, 2011 fire that destroyed the Company’s facility there.
Operating income was $188.7 million in 2012 compared to $203.3 million in 2011. Adjusted EBITDA was $254.0 million in 2012 compared to $266.0 million in 2011. Operating income and Adjusted EBITDA in 2012 included $24.1 million of restructuring and related charges and a net charge of $8.9 million with respect to the shareholder litigation, both noted above.
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