Interim Report 1 January – 31 March 2016

3 months ended 31 March 2016

  • Local currency sales increased by 10% and Euro sales decreased by 1% to €305.8m (€307.8m).
  • Number of active consultants decreased by 9% to 3.1m.
  • EBITDA amounted to €27.7m (€23.0m).
  • Operating margin was 6.9% (5.6%), impacted by -370 bps from currencies, and operating profit €21.1m (€17.2m).
  • Net profit was €10.7m (€11.2m) and EPS €0.19 (€0.20).
  • Cash flow from operating activities was €21.5m (€24.1m).
  • During the quarter $80.0m of the long-term debt was prepaid, corresponding to a cash outflow of €56.0m.
  • The year to date sales development is approximately 13% in local currency and the development in the second quarter to date is approximately 17% in local currency. The quarterly number is positively impacted by timing.

Significant events after the end of the quarter

  • The AGM held on 17 may 2016 resolved that a dividend of €0.40 per share be distributed and paid in two installments: €0.20 to the shareholders of record on 15 November 2016 and €0.20 to the shareholders of record on 15 February 2017.
  • In April Oriflame’s premises in Moscow and Moscow oblast had an unannounced visit by local authorities. Oriflame is still seeking the reason behind these visits and remains fully transparent to the authorities.

CEO Magnus Brännström comments
 
“We are pleased with the overall local sales development during the first quarter, where sequential improvements are seen in most geographies. Asia & Turkey and Latin America continued to record double digit growth and increased profitability. While the reversal of the previous negative sales trend in the CIS is promising, the situation remains uncertain with sustained external and margin improvement challenges. The positive sales momentum for the group has continued into the second quarter, further enhanced by some strong catalogues in April. The underlying business and financial performance is encouraging, although we continue to be heavily impacted by persistent currency headwinds and deteriorating macro across many of our regions. Efficiency initiatives are ongoing and are delivering desired results.”
 
 
Conference call for the financial community
The company will host a conference call on Wednesday, 18 May 2016 at 9.30 CET.
 
Participant access numbers:
DK: +45 35445575

FI: +358 981710493
UK: +44 2030089802
NO: +47 23500254
SE: +46 856642690
US: +1 8557532235

The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website: www.oriflame.com or through http://oriflame-ir.creo.se/160518

 
18 May 2016

Magnus Brännström
Chief Executive Officer

This report has not been audited by the company´s auditors.

Oriflame publishes the information in this interim report in accordance with the Securities Market Act on, Wednesday 18 May, 2016 at 07:15 am (CET).

For further information, please contact:
Magnus Brännström, Chief Executive Officer   Tel: +41 798 263 754
Gabriel Bennet, Chief Financial Officer            Tel: +41 798 263 769
Nathalie Redmo, Investor Relations Manager   Tel: +41 799 220 173

Oriflame Holding AG
Bleicheplatz 3, CH-8200 Schaffhausen, Switzerland
www.oriflame.com
Company registration no CHE-134.446.883

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About Us

Founded in 1967, Oriflame is a beauty company selling direct in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million independent Oriflame Consultants, generating annual sales of around €1.3 billion. Respect for people and nature underlies Oriflame’s operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. Oriflame is a Swiss company group listed on the Nasdaq Stockholm Exchange.

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