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.”
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:
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
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
Company registration no CHE-134.446.883