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Oriflame Reports Interim Results for Six Months Ended June 30, 2013
Posted: August 15, 2013
Oriflame announced its interim report results for January 1–June 30, 2013. For the three months ended June 30, 2031, local currency sales decreased by 1% and European sales decreased by 4% to €359.7 million (vs. €373.6 million). Te number of active consultants was constant at 3.5 million. EBITDA amounted to €42.2 million (vs. €50.4 million), while operating margin was 9.6% (vs. 11.6%) and the operating profit was €34.5 million (vs. €43.2m).
For the six months ended June 30, 2013, local currency sales decreased by 1% and European sales decreased by 4% to €741 million (vs. €769.3m). EBITDA amounted to €87.4 million (vs. €105.4 million). Operating margin was 9.8% (vs. 11.8%) and the operating profit was €72.5 million (vs. €90.9 million).
Oriflame CEO Magnus Brännström commented on the results, saying, “We ended the second quarter weaker than expected, however we see a sales growth of 3% in the third quarter to date, and higher in Russia. The implementation of the improved success plan in the CIS looks promising, although the related price changes had an initial negative impact on sales and leverage in the second quarter. Our key future growth markets are performing very well. Initiatives to increase sales and efficiency within the group are being intensified.”