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Oriflame Reports 2012 Financial Results
Posted: February 14, 2013
Oriflame reported its year-end financial results from the time period of January 1–December 31, 2012, as well as the three months ended December 31, 2012.
For the full-year results, local currency sales decreased by 1% and Euro sales amounted to €1,489.3 million (versus 2011’s €1,493.8 million). EBITDA amounted to €204.2 million (2011’s was €182.2 million).
For a first quarter 2013 update, Oriflame reported that the underlying sales growth in the first quarter of 2013 to date is around 2% in local currency. The full quarter will be negatively impacted by the leap year in 2012 and due to early Easter holiday in 2013.
For the three months ended December 31, 2012, Oriflame saw local currency sales decrease by 2% and Euro sales were stable at €410.6 million (versus €408.7 million in 2011). The average size of its sales force decreased by 7% to 3.2 million Oriflame consultants and closing sales force was down by 5% to 3.4 million. EBITDA amounted to €64.1 million (versus 2011’s €50.5 million).
Of the results, Oriflame’s CEO Magnus Brännström commented, “I am pleased to see an improvement of the sales development compared to the third quarter. Despite the challenges we have seen during the year, we have achieved improved operating margin and an excellent cash flow. For 2013, we remain confident with the strategy laid out for the company, which provides a solid base for our ambitions to return to sales growth.”