Oriflame Revenue Up 12% To Euro 348 Million or $410 Million

Swedish direct sales company Oriflame has reported a Q2 sales increase of 12 percent, a rise which was helped by strong sales in its skin care and wellness categories, its biggest and smallest categories respectively.

CEO Magnus Brännström comments

“We are pleased to report double-digit growth in both Euro and local currency with healthy profitability improvements and a strong financial position.

During the quarter, our strategic priorities continued to serve as important drivers of growth. CIS experienced local currency growth in the quarter, driven by ongoing productivity increases and positive timing.

Asia & Turkey and Latin America were affected by fewer trading days and negative timing of catalogues – the underlying performance remained strong. The positive sales momentum for the Group has continued into the third quarter, in which Oriflame celebrates its 50th anniversary Gold Conference.”

3 months ended 30 June 2017

• Local currency sales increased by 11% and Euro sales increased by 12% to €347.6m (€309.6m).
• Number of registered actives decreased by 2% to 2.8m.
• EBITDA amounted to €47.9m (€40.6m).
• Operating margin was 11.7% (9.9%), favourably impacted by 40 bps from currencies, and operating profit was €40.5m (€30.8m).
• Net profit was €19.9m (€18.1m) and diluted EPS €0.35 (€0.32), negatively impacted by a one-off translation reserve loss on exchange rate of around €3m. The tax rate was further unfavorably impacted by approximately 300 bps from withholding tax on extraordinary large intra group dividends during the quarter.
• Cash flow from operating activities was €33.9m (€35.8m).
• During the quarter, Oriflame successfully completed a €70m issue of Euro denominated private placement notes bilaterally agreed with an international investor.
• The year to date sales development is approximately 9% in local currency and the development in the third quarter to date is approximately 10% in local currency.

6 months ended 30 June 2017

• Local currency sales increased by 9% and Euro sales increased by 12% to €687.8m (€615.4m).
• EBITDA amounted to €88.3m (€68.3m).
• Operating margin was 10.2% (8.4%), positively impacted by 60 bps from currencies, and operating profit was €70.3m (€51.9m).
• Net profit was €39.4m (€28.8m) and diluted EPS €0.69 (€0.51).
• Cash flow from operating activities amounted to €32.5m (€57.3m).