Swedish direct sales company Oriflame has reported a Q2 sales increase of 12 percent, a rise which was helped by strong sales in its skin care and wellness categories, its biggest and smallest categories respectively.
CEO Magnus Brännström comments
“We are pleased to report double-digit growth in both Euro and local currency with healthy profitability improvements and a strong financial position.
During the quarter, our strategic priorities continued to serve as important drivers of growth. CIS experienced local currency growth in the quarter, driven by ongoing productivity increases and positive timing.
Asia & Turkey and Latin America were affected by fewer trading days and negative timing of catalogues – the underlying performance remained strong. The positive sales momentum for the Group has continued into the third quarter, in which Oriflame celebrates its 50th anniversary Gold Conference.”
3 months ended 30 June 2017
Local currency sales increased by 11% and Euro sales increased by 12% to €347.6m (€309.6m).
Number of registered actives decreased by 2% to 2.8m.
EBITDA amounted to €47.9m (€40.6m).
Operating margin was 11.7% (9.9%), favourably impacted by 40 bps from currencies, and operating profit was €40.5m (€30.8m).
Net profit was €19.9m (€18.1m) and diluted EPS €0.35 (€0.32), negatively impacted by a one-off translation reserve loss on exchange rate