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Euro Sales Falter for Oriflame in Q1 2014
Posted: May 7, 2014
Oriflame reported its interim financial results for the time period of January 1 through March 31, 2014. The company saw local currency sales decrease by 2% and Euro sales decrease by 14% to €327.2 million (sales were €381.3 million in the same time period in 2013). Also, the number of active consultants decreased by 5% to 3.5 million for the quarter.
Oriflame CEO Magnus Brännström said of the results, “With sharply devaluating currencies and challenges of exceptional nature in our two largest markets [of] Russia and Ukraine, there is no doubt the company is facing very tough conditions. As a measure of prudence, the board is of the opinion that there should be no dividend payment in Q3. Our new split of global business areas clearly illustrates the situation: we need to return the momentum and improve profitability in CIS and Europe while we continue to see a very positive development in Latin America, Turkey, Africa and Asia.
“During the end of the first quarter, additional improvements to the CIS success plan were launched, and I am pleased to see the drive among our leaders despite the current challenges. There is an undivided focus on restoring growth and mitigating the negative impact on profitability from the geopolitical situation, currency headwind and lack of leverage through margin improvements and reduced cost levels,” he concluded.