August 18, 2017
Oriflame Achieves Double-Digit Growth in Q2 2017
Switzerland-based Oriflame Cosmetics, the direct seller of cosmetics and beauty products, announced financial results for the second quarter of 2017. Local currency sales increased by 11 percent and Euro sales increased by 12 percent to €347.6 million (€309.6 million).
For the three months ended June 30, 2017:
- Number of registered actives decreased by 2 percent to 2.8 million.
- EBITDA amounted to €47.9 million (€40.6 million).
- Operating margin was 11.7 percent (9.9%), favorably impacted by 40 bps from currencies, and operating profit was €40.5 million (€30.8 million).
- Net profit was €19.9 million (€18.1 million) and diluted EPS €0.35 (€0.32), negatively impacted by a one-off translation reserve loss on exchange rate of around €3 million. 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 €33.9 million (€35.8 million).
- During the quarter, Oriflame successfully completed a €70 million issue of Euro denominated private placement notes bilaterally agreed with an international investor.
- The year-to-date sales development is approximately 9 percent in local currency and the development in the third quarter to date is approximately 10 percent in local currency.
For the first six months of 2017:
- Local currency sales increased by 9 percent and Euro sales increased by 12 percent to €687.8 million (€615.4 million).
- EBITDA amounted to €88.3 million (€68.3 million).
- Operating margin was 10.2 percent (8.4%), positively impacted by 60 bps from currencies, and operating profit was €70.3 million (€51.9 million).
- Net profit was €39.4 million (€28.8 million) and diluted EPS €0.69 (€0.51).
- Cash flow from operating activities amounted to €32.5 million (€57. million 3).
“We are pleased to report double-digit growth in both Euro and local currency with healthy profitability improvements and a strong financial position,” said CEO Magnus Brännström. “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 and 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.”
To read the Q2 report, click here.