Oriflame – Q2 Sales decreased by 4 % to € 359.7 Million

 

CEO Magnus Brännström comments:

“We ended the second quarter weaker than expected, however we see a sales growth of 3% in the third quarter to date, and higher in Russia.

The implementation of the improved Success Plan in the CIS looks promising, although the related price changes had an initial negative impact on sales and leverage in the second quarter.

Our key future growth markets are performing very well. Initiatives to increase sales and efficiency within the Group are being intensified.”

 

3 months ended 30 June 2013

• Local currency sales decreased by 1% and Euro sales decreased by 4% to €359.7m (€373.6m).
• Number of active consultants was constant at 3.5m.
• EBITDA amounted to €42.2m (€50.4m).
• Operating margin was 9.6% (11.6%) and the operating profit was €34.5m (€43.2m).
• Net profit amounted to €19.9m (€31.3m) and EPS amounted to €0.36 (€0.55).
• Cash flow from operating activities amounted to €29.3m (€29.3m).
• The AGM and EGM were held in Luxembourg on 21 May followed by a dividend payment of €1.75 per share.
• Third quarter update: The underlying sales growth in the third quarter to date is around 3% in local currency.

6 months ended 30 June 2013

• Local currency sales decreased by 1% and Euro sales decreased by 4% to €741.0m (€769.3m).
• EBITDA amounted to €87.4m (€105.4m).
• Operating margin was 9.8% (11.8%) and the operating profit was €72.5m (€90.9m).
• Net profit amounted to €47.9m (€65.8m) and EPS amounted to €0.86 (€1.15).
• Cash flow from operating activities amounted to €57.7m (€87.3m).