Avon 2008 Annual Report Download - page 6

A company doesn’t get to be 123 years
old as Avon is without learning to navigate
economic downturns. During challenging
times like these, we are fortunate to have
a leadership team on the ground that is
steeped in experience. Our general manager
in Brazil, Luis Felipe Miranda, for example,
is a 30-year veteran who spent many years
in Venezuela, leading that market through
nearly constant crisis. Our general manager
in Mexico, Jorge Martinez Quiroga, is another
30-plus year Avon leader who led Argentina
through that market’s fi nancial crisis in 2001.
In both European business units, as we
confront volatile currency movements, we
are fortunate to have two regional operating
leaders with nearly 60 years of combined
experience between them.
Even during the Great Depression, Avon’s
model thrived on aggressively reaching
for new customers and Representatives. So
history says we have met each challenge
with success. And each time, we’ve emerged
stronger and healthier as a company.
There is no doubt that 2009 will be one of
the most challenging periods in business
history. With the world on edge, fear can
trump fundamentals, but Avon has proven
time and time again that fundamentals can
trump fear. We have a proven track record
and the right playbook for challenging times.
Our world-famous direct selling channel and
iconic beauty brand continue to provide
unparalleled advantage.
And beyond this, Avon remains a fi nancially
stable company. We ended 2008 with $1.1
billion in cash, and we continue to have
an investment grade debt rating and full
access to credit markets. As a sign of our
fi nancial stability, our Board of Directors in
early February approved a 5% increase in
our dividend for 2009, the 19th consecutive
year of an increase in our regular dividend to
shareholders.
So we begin 2009 on a strong foundation.
Our commitment to Avon shareholders is that
we’re going to keep on doing all the right
things for the business, just as we have always
done -- opening new doors and bringing
new Representatives and customers into our
store. We will build on our progress with our
turnaround, our advantaged business model
and our 123 years of experience as one of
the most admired and successful companies
in the world. We will do what we know how
to do, but also what we need to do to ensure
that we emerge a much stronger company, as
we always have.
In closing, I want to thank our almost
six million Avon Representatives and
approximately 42,000 associates around the
globe for their dedication and commitment
to the company. I also want to recognize
our outstanding Board of Directors for their
invaluable guidance and counsel. And fi nally,
I would like to acknowledge you, the Avon
shareholder, for supporting and believing in
our management team.
You have our commitment that Avon will
stay the course on our continuing journey to
sustainable profi table growth. Our destination
remains unchanged: being the solution for
Dawn Parrino and for the six million other
Dawns who touch hundreds of millions
of women across the globe. During these
unprecedented times when the world is full
of questions, we fi rmly believe that now more
than ever, Avon can be the answer.
Andrea Jung
March, 2009