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Interim report 1 January – 30 September 2012

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3 months ended 30 September 2012

  • Local currency sales decreased by 7% and Euro sales were down by 4% to €309.4m (€321.6m).
  • Average size of the sales force decreased by 8% to 3.2m Oriflame Consultants and closing sales force was down by 9%.
  • EBITDA amounted to €34.7m (€32.6m).
  • Adjusted operating margin was 9.1% (8.3%) resulting in an adjusted operating profit of €28.0m (€26.7m).
  • Adjusted net profit amounted to €18.4m (€15.1m) and adjusted EPS after dilution amounted to €0.32 (€0.26).
  • Cash flow from operating activities amounted to €18.4m (€-3.4m).

9 months ended 30 September 2012

  • Local currency sales were flat and Euro sales were down by 1% to €1,078.7m (€1,085.1m).
  • EBITDA amounted to €140.1m (€131.7m).
  • Adjusted operating margin was 11.0% (10.3%) resulting in an adjusted operating profit of €118.9m (€111.8m).
  • Adjusted net profit amounted to €84.2m (€70.7m) and adjusted EPS after dilution amounted to €1.48 (€1.24).
  • Cash flow from operating activities improved to €105.8m (€45.1m).
  • Revised outlook for 2012: Local currency sales expected to be slightly below 2011 for the full year while operating margin is expected to improve compared to prior year. Previous outlook for 2012: Focus to reverse the sales trend and return to growth with improved operating margin.

CEO Magnus Brännström comments

“The sales development in the third quarter was below our expectations, affected by continuously challenging market conditions in many key markets as well as a lower sales force. On the positive side we continue to see good development of margins and operating cash flow, which reflects our commitment to strengthen the current brand positioning and improving the profitability.
The results from the important recent recruitment campaign are in line with our expectations and fourth quarter local currency sales are to date in line with prior year. However, in view of the weak macro situation, we estimate 2012 full year local currency sales slightly below prior year. Operating margin remains in focus and is expected to improve compared to prior year. We continue to adapt the cost structure and organization to the challenges and opportunities that lie ahead.” 

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
Joakim Banestig, Sr. Dir. Investor Relations,      Tel: +41 791 033 521
Johanna Palm, Dir. Investor Relations,              Tel: +46 765 422 672

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Q3 Oriflame Q3 2012

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