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European-based cosmetics direct-selling company Oriflame released its interim financial report for January 1–June 30, 2012. For the three months ending June 30, the company reported its local currency sales increased by 1% and euro sales were up by 2% to €373.6 million. The average size of the company’s sales force decreased by 5% to 3.6 million Oriflame consultants and closing sales force was down by 6%. Adjusted net profit amounted to €31.3 million and adjusted EPS after dilution amounted to €0.55. During this time, the company expanded into East Africa via the acquisition of former franchisee businesses in Kenya, Uganda and Tanzania.
Figures for the six months ending June 30, 2012, see local currency sales increased by 2% and euro sales were up by 1% to €769.3 million. Adjusted net profit amounted to €65.8 million and adjusted EPS after dilution amounted to €1.15.
Of the report, Oriflame CEO Magnus Brännström commented, “A clearly improved operational efficiency and profitability give us a stable foundation to address the challenges ahead. I am very pleased to see another quarter of strong growth in Asia, Africa and Latin America with further margin expansion, while sales in the CIS and Europe are slightly lower than expected. The decline in the group sales force is fully compensated by strong productivity. Going forward, we are confident in our ambitions to strengthen the income opportunity for our Oriflame consultants through innovation and brand building thereby securing a long-term sales force increase.”