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2013 Sales Down 1% for Oriflame

Posted: February 14, 2014

Oriflame announced its year-end report, for the period of January 1 through December 31, 2013. For the three months ended December 31, 2013, local currency sales decreased by 1% and Euro sales decreased by 10% to €371.2 million (the same period in 2012 saw €410.6 million). However, the number of active consultants increased by 1% to 3.5 million. For the 12 months ended December 31, 2013, local currency sales decreased by 1% and Euro sales decreased by 6% to €1.406 billion (2012 saw €1.489 billion).

Of the results, Oriflame CEO Magnus Brännström noted, “During the fourth quarter, CIS and Europe underperformed. The revised success plan introduced in the CIS region last year has not yet resulted in desired effects, and thus after evaluating the first phase, further improvements will be introduced during the spring. In addition, strong currency headwind is impacting sales and profit negatively, and Ukraine continues to be a challenge fueled by the recent development in the country. Looking at the operations, I feel confident about the new product launch plan, the development of our online business and the upcoming improvements in our sales and recruitment activities. I am also pleased to see that our measures to drive efficiency are progressing well in line with plan. Importantly, our key growth markets in Asia, Latin America and Africa continue to perform very well, representing around 30% of total sales with growth of approximately 20%. Further geographical expansion is continuing.”

More on this financial report is available here.