Oriflame Half Year Revenue Up 17% To €301 Million

 

Swedish direct sales company Oriflame has reported local currency sales rise of 17 percent for the three months ended June 30, 2016, fueled by a strong performance in Asia and Turkey.  

CEO Magnus Brännström:

“We are pleased with the healthy sales development during the second quarter where we report Euro growth despite strong currency headwinds, partly fueled by positive timing and a strong start of the quarter.

The solid performance in Asia & Turkey and Latin America continued and further improvements could be seen in Europe, while the situation in Africa was continuously challenging. CIS experienced local currency growth in the quarter although margin improvement challenges remain.

The third quarter has started in a promising way, although many of our markets continue to be volatile and we face highly uncertain geopolitical and macroeconomic conditions. We continue to execute on our strategic priorities to further strengthen our position and efficiency going forward.”

• Local currency sales increased by 17% and Euro sales increased by 3% to €309.6m (€301.0m).
• Number of active consultants decreased by 5% to 2.9m.
• EBITDA amounted to €40.6m (€29.6m).
• Operating margin was 9.9% (7.2%, adjusted* 8.3%), impacted by -390 bps from currencies, and operating profit €30.8m (€21.7m, adjusted* €25.0m ).
• Net profit was €18.1m (€9.1m, adjusted** €11.9m) and diluted EPS €0.32 (€0.16, adjusted** €0.21).
• Cash flow from operating activities was €35.8m (€25.3m).
• The year to date sales development is approximately 14% in local currency and the development in the third quarter to date is approximately 12% in local currency.

*Adjusted for non-recurring items of €3.2m in the second quarter 2015
**Adjusted for additional non-recurring items of (€0.5m) in the second quarter 2015

6 months ended 30 June 2016

• Local currency sales increased by 14% and Euro sales increased by 1% to €615.4m (€608.9m).
• EBITDA amounted to €68.3m (€52.6m).
• Operating margin was 8.4% (6.4%, adjusted* 6.9%), impacted by -390 bps from currencies, and operating profit was €51.9m (€39.0m, adjusted* €42.2m).
• Net profit was €28.8m (€20.4m, adjusted** €23.1m) and diluted EPS €0.51 (€0.37, adjusted** €0.42).
• Cash flow from operating activities amounted to €57.3m (€49.4m).

*Adjusted for non-recurring items of €3.2m during the period 2015
**Adjusted for additional non-recurring items of (€0.5m) during the period 2015

 Significant events after the end of the quarter

• Oriflame will prepay $14.1m of the Private Placement debt during the third quarter 2016, corresponding to a cash outflow of €9.9m.

Conference call for the financial community
The company will host a conference call on Tuesday, 16 August 2016 at 11.00 CET.

About Oriflame