Oriflame Second-Quater 2011 Up 7%
Three months ended 30 June 2011
- Local currency sales increased by 5% and Euro sales decreased by 2% to €366.7m (€375.0m). Excluding Oriflame's business in Iran, sales growth was 7% in local currency.
- Average size of the sales force increased by 5% to 3.8m consultants and closing sales force was up by 4%.
- EBITDA amounted to €45.7m (€44.3m).
- Adjusted operating margin was 10.5% (10.1%) resulting in an adjusted operating profit of €38.4m (€37.9m).
- Adjusted net profit amounted to €24.2m (€29.5m) and adjusted EPS after dilution amounted to €0.42 (€0.52), negatively affected by €1.4m in foreign exchange losses compared to gains of €8.1m last year.
- Cash flow from operating activities amounted to €31.1m (€22.9m).
- Credit facilities of €430m secured.
Six months ended 30 June 2011
- Local currency sales increased by 6% and Euro sales increased by 4% to €763.5m (€736.8m). Excluding Oriflame's business in Iran, sales growth was 8% in local currency.
- EBITDA amounted to €99.1m (€93.6m).
- Adjusted operating margin was 11.1% (10.9%) resulting in an adjusted operating profit of €85.1m (€80.1m).
- Adjusted net profit amounted to €55.6m (€66.7m) and adjusted EPS after dilution amounted to €0.97 (€1.17).
- Cash flow from operating activities amounted to €48.5m (€43.8m).
Significant events after the end of the period
- In mid July, Oriflame issued new private placement notes of $195m and €25m respectively.
The weak market conditions continued in the second quarter and Oriflame's sales in local currency increased by 5%. The positive development in EMEA and Asia continues, where Asia is becoming increasingly important for the overall performance of the group. Despite the strong head wind of currencies, I am pleased to note that the operating margin continues to improve. On top of this, we managed to renew our credit facility and complete additional private placement notes with longer maturities and lower cost. I am confident that the group is in a good position to grow further once the market conditions improve, CEO Magnus Brännström comments.
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