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European Sales Fall for Oriflame
Posted: November 12, 2013
Oriflame announced its interim financial results report for the time period of January 1–September 30, 2013. Local currency sales for the company increased by 3%, but Euro sales decreased by 5% to €294.6 million (versus €309.4 million for the same time period in 2012). Its number of active consultants increased by 2%, and adjusted operating margin was 7.8% (versus 9.1%) resulting in an adjusted operating profit of €23.1 million (versus €28 million). Also, adjusted net profit amounted to €9.4 million (versus €18.4 million).
At the end of August, Oriflame announced measures to drive sales in the EMEA region, as well as to enhance efficiency in the company. And for the fourth quarter of 2013, the company sees underlying sales to date as in line with prior year in local currency.
Oriflame CEO Magnus Brännström commented, "Our key growth markets in Asia, Latin America, Africa and the Middle East continue to perform very well, representing more than 30% of sales in the quarter. However, sales growth for the group of 3% in the third quarter shows that the sales development in our main markets in CIS and Europe continues to be volatile, as the initiatives to increase sales and efficiency are yet to translate into benefits. Fourth quarter sales in local currency have started in line with prior year and the positive sales force momentum from the third quarter has continued.”