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Year-end report 1 January – 31 December 2012

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3 months ended 31 December 2012

  • Local currency sales decreased by 2% and Euro sales were stable at €410.6m (€408.7m).
  • Average size of the sales force decreased by 7% to 3.2m Oriflame Consultants and closing sales force was down by 5% to 3.4m.
  • EBITDA amounted to €64.1m (€50.5m).
  • Adjusted operating margin was 13.7% (12.8%) resulting in an adjusted operating profit of €56.2m (€52.2m).
  • Adjusted net profit amounted to €37.2m (€35.0m) and adjusted EPS amounted to €0.65 (€0.61).
  • Cash flow from operating activities amounted to €77.9m (€90.2m).
  • EGM approval for share buyback mandate to repurchase up to 10 percent of outstanding shares until 2014 AGM. A first part of the share buyback programme was subsequently initiated on 2 January, 2013 with a repurchase notional of SEK 350m to be executed until 23 April, 2013.

12 months ended 31 December 2012

  • Local currency sales decreased by 1% and Euro sales amounted to €1,489.3m (€1,493.8m).
  • EBITDA amounted to €204.2m (€182.2m).
  • Adjusted operating margin was 11.8% (11.0%) resulting in an adjusted operating profit of €175.1m (€164.1m).
  • Adjusted net profit amounted to €121.5m (€105.7m) and adjusted EPS amounted to €2.13 (€1.86).
  • Cash flow from operating activities improved to €183.7m (€135.3m).
  • First quarter update: The underlying sales growth in the first quarter 2013 to date is around 2% in local currency. The full quarter will be negatively impacted by the leap year in 2012 and due to early Easter holiday in 2013. Operating margin comparables for the first quarter 2013 are more challenging compared to the rest of the year.
  • Oriflame’s Board of Directors will propose a dividend for 2012 of €1.75 per share (€1.75), payable after the AGM to be held on 21 May 2013. As from the dividend on 2013 profits, payable in 2014, the Board of Directors intends to, in the year-end report 2013, propose a dividend to be determined by the AGM in May 2014 and to be paid out in four instalments in order to optimise the balance sheet over the year.

                

CEO Magnus Brännström comments

“I am pleased to see an improvement of the sales development compared to the third quarter. Despite the challenges we have seen during the year, we have achieved improved operating margin and an excellent cash flow. For 2013, we remain confident with the strategy laid out for the company which provides a solid base for our ambitions to return to sales growth.”

                            

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
Anders Ågren, VP Investor Relations,     Tel: +46 765 422 353
Johanna Palm, Dir. Investor Relations,     Tel: +46 765 422 672

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