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Interim report 1 January – 30 June 2014

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3 months ended 30 June 2014

  • Local currency sales decreased by 1% and Euro sales decreased by 14% to €310.4m (€359.7m). There was a slight positive timing effect in the quarter that will be reversed in the third quarter.
  • Number of active consultants decreased by 7% to 3.2m impacted by weak demand in some of the main markets in Europe and CIS.
  • EBITDA amounted to €32.8m (€42.2m).
  • Adjusted* operating margin was 8.1% (9.6%), negatively impacted by approximately 400 bps from currency movements, partly offset by hedging and positive price/mix effects as well as cost reductions ahead of plan, resulting in an adjusted* operating profit of €25.3m (€34.5m).
  • Adjusted* net profit amounted to €12.1m (€19.9m) and adjusted* EPS amounted to €0.22 (€0.36) impacted by extraordinary tax costs of €3.3m**.
  • Cash flow from operating activities amounted to €12.0m (€29.3m).
  • Given the continued uncertain geopolitical situation the Board proposes no dividend payment in Q4.
  • Trading update: The year to date sales development is approximately -2% in local currency and the development in the third quarter to date is approximately -4% in local currency.

* Adjusted for restructuring costs during the quarter €1.3m.
** €1.3m relates to revaluation of deferred tax assets and €2.0m is a one-off effect from the change in Group legal structure which is expected to be offset by a positive one-off effect by the beginning of next year given successful completion of the project.

6 months ended 30 June 2014

  • Local currency sales decreased by 2% and Euro sales decreased by 14% to €637.6m (€741.0m).
  • EBITDA amounted to €62.2m (€87.4m).
  • Adjusted* operating margin was 7.6% (9.8%), negatively impacted by approximately 400 bps from currency movements, partly offset by hedging and positive price/mix effects as well as cost reductions ahead of plan, resulting in an adjusted* operating profit of €48.3m (€72.5m).
  • Adjusted* net profit amounted to €24.0m (€47.9m) and adjusted* EPS amounted to €0.43 (€0.86).
  • Cash flow from operating activities amounted to €28.9m (€57.7m).

* Adjusted for restructuring costs during the period €1.7m.

CEO Magnus Brännström comments
“The second quarter performance follows in the path of recent quarters; our key growth regions continue to deliver both from a sales and margin perspective while we have yet to turn around business performance in Europe and CIS – where in main markets we still face tough geopolitical and economic conditions. We are focusing on executing our strategy and initiatives, while at the same time aligning our organization to further improve efficiencies.”

Conference call for the financial community
The company will host a conference call on Thursday, 14 August at 9.30 CET.

Participant access numbers:
Luxembourg: +352 2 786 0202
Sweden: +46 (0)8 506 443 86
Switzerland: +41 44 580 65 22
UK: +44 20 7153 9154
US: +1 877 423 0830

Confirmation code: 404376#
The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website: www.oriflame.com or through http://www.media-server.com/m/p/oizbp7uj

14 August 2014

Magnus Brännström
Chief Executive Officer

For further information, please contact:
Magnus Brännström, Chief Executive Officer, Tel: +352 691 151 930
Gabriel Bennet, Chief Financial Officer, Tel: +41 798 263 713
Johanna Palm, Director Investor Relations, Tel: +46 765 422 672

Oriflame Cosmetics S.A.
24 Avenue Emile Reuter, L-2420, Luxembourg
www.oriflame.com
Company registration no B.8835

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