Interim report 1 January – 30 September 2015
Three months ended 30 September 2015
- Local currency sales increased by 4% and Euro sales decreased by 4% to €263.2m (€274.5m).
- Number of active consultants decreased by 5% to 2.8m.
- EBITDA amounted to €25.1m (€26.3m).
- Operating margin was 7.3% (7.2%), resulting in an operating profit of €19.1m (€19.7m), negatively impacted by approximately 300 bps from currencies offset by positive price/mix effects and lower sales and marketing costs.
- Net profit amounted to €4.9m (€11.8m) and EPS amounted to €0.09 (€0.21).
- Cash flow from operating activities amounted to €4.1m (€-4.9m).
- Fourth quarter update: The year to date sales development is approximately 2% in local currency and the development in the fourth quarter to date is approximately 9% in local currency.
- As per 30 September 2015 the merger between Oriflame Holding AG and Oriflame Cosmetics S.A. was successfully completed. The merger relates to the share-for-share exchange transaction through which Oriflame has changed domicile from Luxembourg to Switzerland. The share of the new top holding company, Oriflame Holding AG was listed on Nasdaq Stockholm in June, and the SDR of Oriflame Cosmetics S.A. was delisted in July.
Nine months ended 30 September 2015
- Local currency sales increased by 1% and Euro sales decreased by 4% to €872.1m (€912.1m).
- EBITDA amounted to €77.8m (€88.5m).
- Adjusted* operating margin was 7.0% (7.5%), negatively impacted by more than 200 bps from currency movements, partly offset by hedging and positive price/mix effects as well as cost reductions, resulting in an adjusted* operating profit of €61.3m (€68.0m). Operating margin was 6.7% (7.3%) and operating profit €58.1m (€66.3m).
- Adjusted** net profit amounted to €28.0m (€35.9m) and adjusted** EPS amounted to €0.50 (€0.65). Net profit was €25.3m (€34.1m) and EPS €0.45 (€0.61).
- Cash flow from operating activities amounted to €53.5m (€24.0m).
* Adjusted for non-recurring items of €1.7m during the period 2014
* 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
CEO Magnus Brännström comments
“We are pleased to report double digit growth in both Latin America and Turkey, Africa & Asia. These markets now account for close to half of the total sales with an increased contribution to the overall profitability of the Group. Although challenges remain in CIS and Europe the development is improving, suggesting that the efforts of driving activity are starting to pay off. The unit development remains a challenge and puts pressure to further drive efficiencies across all parts of the organisation. The fourth quarter has started in a promising way although it should be noted that we are facing more difficult sales comparable in the second half of the quarter.”
Conference call for the financial community
The company will host a conference call on Thursday, 12 November at 9.30 CET.
Participant access numbers:
Luxembourg: +35 227 300 158
Sweden: +46 8 5055 64 53
Switzerland: +41 225 802 994
UK: +44 203 009 24 55
US: +1 855 228 37 19
12 November 2015
Chief Executive Officer
For further information, please contact:
Magnus Brännström, Chief Executive Officer, Tel: +41 798 263 754
Gabriel Bennet, Chief Financial Officer, Tel: +41 798 263 713
Johanna Palm, Sr. Director Investor Relations, Tel: +46 765 422 672
Nathalie Redmo, Investor Relations Manager Tel: +41 799 220 173
Oriflame Holding AG
Bleicheplatz 3, CH-8200 Schaffhausen, Switzerland
Company registration no CHE-134.446.883
This information is such that Oriflame Holding AG is required to disclose in accordance with the Swedish Financial Instruments Trading Act and/or the Swedish Securities Market Act. The information was submitted for publication at 7:15 CET on 12 November 2015.