Swedish beauty products company Oriflame on Friday posted lower than expected first-quarter operating profit and said its Russian sales were falling, sending its share price plunging by 16 percent.
Local currency sales increased by 8%, slightly positively impacted by timing of catalogues. Euro sales decreased by 2% to €334.1m (€340.1m). Euro sales amounted to €330.8m* in accordance with IFRS.
Number of registered actives increased by 1% to 3.0m.
EBITDA amounted to €42.1m (€40.4m) and to €46.3m* in accordance with IFRS.
Operating margin was 9.2% (8.8%), negatively impacted by 320 bps from currencies, and operating profit was €30.6m (€29.8m). Operating margin was 10.5%* and operating profit was €34.8m* in accordance with IFRS.
Net profit was €18.7m (€19.5m) and diluted EPS €0.32 (€0.34). The tax rate was unfavorably impacted by approximately 350 bps from withholding tax on extraordinary large intra group dividends during the quarter. Net profit was €21.0m* and diluted EPS €0.36* in accordance with IFRS.
Cash flow from operating activities was €24.9m (€-1.5m) and €24.9m* in accordance with IFRS.
The development in the second quarter to date is approximately -2% in local currency, negatively impacted by timing of catalogues in the CIS as well as conferences in most regions.
*Figures following the adoption of IFRS 15 and IFRS