Tag Archive for Oriflame

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Oriflame Q3 Sales Down 19% To €130 Million

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“The Board of directors of Oriflame Holding Limited, the Company and its advisers are proactively exploring options to address its capital structure and are evaluating potential recapitalisation opportunities.
In connection with such efforts, the Company is in constructive and active discussions with a group of investors who are majority holders of the Company’s Euro and USD senior secured notes.
No assurance can be given with respect to the outcome of any such negotiations.”

Three months ended 30 September 2024

Euro sales decreased by 19% to €130.8m (€161.7m) and local currency sales decreased by 16%.
The adjusted EBITDA amounted to €5.4m (€4.1m) and the adjusted EBITDA margin was 4.2% (2.5%). The currency impact on the adjusted EBITDA was 170 bps negative.
The adjusted operating profit was €0.2m (€-1.7m) and the adjusted operating margin was 0.2% (-1.1%).
The adjusted net profit was €6.9m (€-54.2m).
The adjusted cash flow from operating activities was €-10.9m (€-6.9m) and adjusted cash flow before financing activities was €-13.0m (€-13.9m).
Additional non-recurring costs amounting to €1.5m (€20.3m) were recorded during the quarter and excluded from the operating profit (adjusted operating profit).

Oriflame Sales 2018 – 2023
Nine months ended 30 September 2024

Euro sales decreased by 21% to €435.5m (€551.9m) and local currency sales decreased by 17%.
The adjusted

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Oriflame Revenue And Profit 2023 In A Free Fall

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According to Oriflame:
“Founded in 1967, Oriflame is a social selling beauty company with sales in more than 60 countries. Its portfolio of Swedish, nature-inspired, innovative beauty products is marketed through more than two million members, generating annual sales of almost one billion Euro (2022).”
Oriflame revenue is down 17% in the first 9 months of 2023, and the last 3 months of 2023 the revenue fall is even more 26%. The company loss is €-62.2m. Im May former CEO Magnus Brännström has stepped down after 18 years in that role and has been replaced by Anna Malmhake.
According to a recent press release Oriflame revenue is in a free fall. 20% of the corporate positions will be “affected.” An other press release stated:

Oriflame launched a comprehensive cost and efficiency program to increase profitability and secure long-term growth, while at the same time ensuring continued strategic investments in product and market development.
The program aims to deliver annual cost savings of approximately €45m once fully completed and will affect around 20 percent of the number of positions in the company across all levels and geographies.

Nine months ended 30 September 2023

Euro sales decreased by 17% to €551.9m (€661.0m) and local currency sales by 11%.
The adjusted

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Oriflame Appoints Anna Malmhake As CEO

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Oriflame today announces the appointment of Anna Malmhake as its new Chief Executive Officer and President.
Anna will take over the position from Magnus Brännström, who earlier announced his decision to step down after 18 years as its CEO. Anna Malmhake has extensive experience from leadership positions in several global consumer goods companies. She first joined Oriflame as Member of the Board in 2014.
Anna Malmhake holds a Bachelor degree of Social Science, Business and Law from the University of Stockholm. She started her career in 1991 at Procter & Gamble in Sweden and joined the Coca-Cola company in Stockholm in 1996, where she held various marketing positions. She joined Motorola in 2003 with positions in Sweden, London and Chicago.
In 2007 Anna joined the Absolut Company as Global Brand Director, and in 2011 she moved to Dublin to serve as Chairman and CEO of Irish Distillers. Five years later she was appointed Chairman and CEO of The Absolut Company within Pernod Ricard. In 2020, Anna took on the position as Managing Director Go-To-Market EMEA Region for Activision Blizzard, one of the world’s leading gaming companies.
“Anna is a value-driven and result-oriented business leader, known for driving successful transformations. With her extensive marketing and

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Vietnam Penalizes Oriflame, Unicity and Greenlife For MLM Violations

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The Ministry of Industry and Trade’s Vietnam Competition Agency (VCA) has just announced the decision to fine three multi-level companies, including Greenlife Corporation, Stella Ivy Cosmetic Co., Ltd. (Oriflame), and Unicity Marketing Vietnam Co., Ltd.
Specifically, Greenlife Corporation (Pho Yen town, Thai Nguyen province) will be fined VND510 million ($22,600) for conducting multi-level sales activities without the approval of the Thai Nguyen Department of Industry and Trade. Additionally, the company’s amended business registration certificate did not include some of the company’s activities among the fields of operation.
VCA has decided to revoke the business registration certificate of Greenlife Corporation.
Greenlife also failed to properly and completely fulfil its training obligation for multi-level sales participants and did not grant multi-level sales network member cards to participants.
The company also failed to periodically report to competent state agencies and provided wrong or misleading information about the use of its goods to entice sales people to joint its multi-level sales network.
As a result, VCA has decided to revoke the business registration certificate of Greenlife Corporation. Previously, this company has been infamous because its members had led students to mortgage facilitates for usury loans, then poured the money into the multi-level company to become distributors.
VCA decided to issue

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Oriflame Sales Down 2% To €334.1 Million

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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

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Oriflame Co-Founder Jonas Af Jochnick Steps Down

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Jonas af Jochnick, co-founder of Switzerland-based cosmetics giant Oriflame, has declined re-election and will step down from the board of directors after serving as a director since the founding of the company in 1967.
 “After 50 years it is time for me to leave the Board and provide room for a new generation,” said Jochnick.
“In my view the entrepreneurial corporate culture of Oriflame is, and always has been, one of our key differentiators and part of the company’s DNA from the start.
I am confident it will live on for the years to come, and I am very pleased that my daughter, Anna af Jochnick, has been proposed as new Board Director.”
Anna af Jochnick has extensive company-specific and direct sales experience.
According to the company, she will bring shareholder and cultural focus to the board.
She holds a Master of Laws (LL.M), Major in Business Law from Lund University.
Her career includes Associate at Grönberg Advokatbyrå as well as several positions within Oriflame, including tax manager, area sales manager, and regional online implementation and business development manager for the Western European region.
Gunilla Rudebjer was also nominated to the board of directors. Rudebjer will bring extensive managerial, financial and accounting experience to the board.
She holds a

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Oriflame’s Magnus Brannstrom Gets Candid About Direct Selling In India

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Magnus Brannstrom, CEO and president of Swedish direct selling company Orifame, doesn’t believe in mincing words. Founded in 1967, Oriflame has a sizeable presence in 60 plus countries, with over 3 million beauty consultants, generating annual sales of around €1.2 billion.
In India, it’s been battling headwinds since its debut in 1996. “The first 20 years were very tough in terms of profitability,” confesses Brannstrom. He claims India is now profitable but declines to share numbers, citing global policies. Asserting that India is among the Top 5 markets for Oriflame, he contends that the Indian obsession with white skin is not unique. “The grass is always greener on the other side,” he grins, adding that while Indians want to look white, Westerners are keen to get tanned.
Over 20 years in India, how has the journey been so far?
India is among the top five countries. The first 20 years were very tough in terms of striking profitability. The sales prices are very low compared to other countries. So it’s hard to make money. It has been a long journey towards profitability. But Oriflame has been able to endure because of the long-term opportunities. Now we are happy with the business; the

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Oriflame CEO Magnus Brannstrom Named Chairman Of The World Federation Of Direct Selling Associations

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The World Federation of Direct Selling Associations (WFDSA), a global trade organization representing more than 60 national direct selling associations, today announced Oriflame CEO and President Magnus Brännström will serve as the organization’s Chairman through October 2020.
Brännström assumes the role of Chairman from Doug DeVos, President of Amway.
“I am very honoured and privileged to serve the direct selling industry as Chairman of the World Federation of Direct Selling Associations during these exciting times. The world is going through digital transformation.
I believe the direct selling, with its communities of people united by a joint purpose, is more relevant than ever for empowering entrepreneurship through offering quality products and services.
I look forward to continue to build and develop on my predecessors’ long legacy of improving the standards of the global direct selling industry,”
said Magnus Brännström.
Previously Brännström was the Vice Chairman of WFDSA. He also held the position as Chairman of SELDIA, the European Direct Selling Association.
“It’s been a tremendous honour to serve as Chairman of WFDSA for the past three years. None of our goals could have been accomplished without strong partnerships and the support of the direct selling associations around the world”,
said outgoing Chairman Doug De Vos. “Direct selling

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Oriflame Appoints Naveen Anand As Senior Director Regional Marketing

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Leading Swedish direct selling beauty brand Oriflame on Thursday appointed Naveen Anand as the Senior Director Regional Marketing South Asia.
In his new role, Naveen will spearhead the operations in India, Sri Lanka and Pakistan and will be responsible for accelerating growth and enhancing the brand equity for the Oriflame business.
The marketing veteran with two decades of experience in the direct selling business was instrumental in building Amway India’s business. Naveen has helmed key positions in Amway, and brings with him a treasure trove of valuable insights and experiences.
In his previous role as the Global Marketing Director for Brand Nutrilite, he has worked very closely with various markets such as China, Korea, Japan, Brazil, Mexico, Thailand, Malaysia and markets in Europe.
Naveen has been highly successful in rolling out mass media campaigns for various brands at Amway. During his tenure, Naveen has significantly contributed towards strengthening of global marketing brands both in Amway India as well as across the globe.
“We are delighted to welcome Naveen on board and, will be looking forward to leveraging his extensive knowledge to drive more engagement and give vision and direction to Oriflame’s business for its next level of growth in the region.
We are certain that

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Oriflame Revenue Up 12% To Euro 348 Million or $410 Million

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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

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