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VENTURA COUNTY BUSINESS | VENTURA COUNTY EARNINGS

Jafra Cosmetics Posts Strong Quarter, Year

March 14, 2000

CDRJ Investments and its subsidiaries, doing business as Jafra Cosmetics International, reported strong financial results for the fourth quarter and year ended Dec. 31.

Net income for the quarter was $7.1 million, up $9.1 million over the same period a year earlier when the company reported a loss. The company incurred $1.7 million of nonrecurring restructuring and impairment charges during the fourth quarter of 1999.

Net income for 1999 was $4.6 million, up $8.6 million over 1998. The company had $4.8 million of nonrecurring restructuring and impairment charges during 1999.

Net sales for the fourth quarter were $83.7 million, up 16% compared with $72.4 million for the same period in 1998. For the full year, net sales were $290.5 million, up 17% compared with $248.3 million in 1998.

Company officials said an increase in the number of sales representatives and a hike in product prices were responsible for the sales increases for both the quarter and the year. The company ended the year with 292,000 sales representatives, an increase of 18%.

"Throughout the year, we focused on taking the actions necessary to position ourselves to grow and invest in the business," said Ronald Clark, chairman and chief executive. "We focused on enhancing cash flow in order to fund future investments in new markets and e-commerce via the Internet, which will allow us to diversify our revenue base."

Jafra manufactures skin and body care products, cosmetics, fragrances and other personal care products. It markets its products through a direct selling, multilevel distribution system comprised of self-employed salespeople.

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