Year-end report 1 January – 31 December 2016

3 months ended 31 December 2016

  • Local currency sales increased by 8% and Euro sales increased by 5% to €355.1m (€339.5m).
  • Number of registered actives* decreased by 7% to 3.0m.
  • EBITDA amounted to €49.0m (€39.7m).
  • Operating margin was 11.8% (9.6%, adjusted** 11.5%), impacted by -110 bps from currencies, and operating profit was €42.0m (€32.6m, adjusted** €38.9m). The operating margin was favourably impacted by a VAT income related to the Russian tax case, fully offset by Ukrainian and other one-off restructuring costs as well as costs linked to the outsourcing of financial and IT operations to IBM.
  • Net profit was €25.2m (€8.9m, adjusted** €15.2m) and diluted EPS €0.44 (€0.16, adjusted** €0.27).
  • Cash flow from operating activities was €61.7m (€68.8m).
  • The first quarter to date sales development is approximately 11% in local currency.

*Replaces the former definition “active consultants” and represents Consultants having placed at least one order during the last 3 months.
**Adjusted for non-recurring items of €6.3m in the fourth quarter 2015.

12 months ended 31 December 2016

  • Local currency sales increased by 12% and Euro sales increased by 3% to €1,249.4m (€1,211.6m)
  • EBITDA amounted to €148.2m (€117.4m).
  • Operating margin was 9.5% (7.5%, adjusted* 8.3%), impacted by -250 bps from currencies, and operating profit was €119.2m (€90.6m, adjusted* €100.2m).
  • Net profit was €66.7m (€34.2m, adjusted** €43.2m) and diluted EPS €1.18 (€0.62, adjusted** €0.79).
  • Cash flow from operating activities amounted to €113.1m (€122.2m).
  • The Board of Directors will propose to the 2017 AGM a total dividend of €1.50 per share for 2016, of which €1.00 (€0.40) per share is to be considered as ordinary and €0.50 to be considered as extra dividend. The ordinary dividend is to be paid in equal quarterly instalments of €0.25 respectively starting in the second quarter 2017, and the extra dividend is to be paid during the second quarter 2017.

*Adjusted for non-recurring items of €9.6m during the period 2015.
**Adjusted for additional non-recurring items of (€0.5m) during the period 2015.

CEO Magnus Brännström comments
“2016 was a year when we made significant steps to improve the overall position of Oriflame and when the success from our online leaders and the sales of Skin Care and Wellness sets and routines reached new levels. It was a year when we returned to Euro growth, delivered double-digit local currency growth and increased the profitability each consecutive quarter – despite challenging market conditions and deteriorating macro. 2017 marks the 50th anniversary of Oriflame and we are reaching this milestone stronger than ever before, equipped with a good underlying momentum, solid strategy and strong financial position. At the same time, many of our markets continue to be volatile and face highly uncertain geopolitical and macroeconomic conditions. The first quarter has started in a promising way and we will continue to deliver on our strategy – ready to meet an ever-changing world during the next 50 years.”

Other
A Swedish translation is available on www.oriflame.com.

Conference call for the financial community
The company will host a conference call on Thursday, 16 February 2017 at 9.30 CET.

Participant access numbers:
SE: +46856642698
DK: +4535445575
FI: +358981710491
NO: +4723500252
UK: +442030089801
US: +18557532235

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/170216

16 February 2017

Magnus Brännström
Chief Executive Officer

For further information, please contact:

Magnus Brännström , Chief Executive Officer Tel: +41 798 263 754
Gabriel Bennet, Chief Financial Officer Tel: +41 798 263 769
Nathalie Redmo , Sr. Manager IR Tel: +41 799 220 173

This information is information that Oriflame Holding AG is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:15 CET on February 16, 2017.

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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