- currency sales decreased by 2% and Euro sales decreased by 3% to €301.0m (€310.4m).
- Number of active consultants decreased by 6% to 3.0m.
- EBITDA amounted to €29.6m (€32.8m).
- Adjusted* operating margin was 8.3% (8.1%), resulting in an adjusted* operating profit of €25.0m (€25.3m), negatively impacted by approximately 150 bps from currencies. Operating margin was 7.2% (7.7%) and operating profit €21.7m (€24.0m).
- Adjusted** net profit amounted to €11.9m (€12.1m) and adjusted** EPS amounted to €0.21 (€0.22). Net profit was €9.1m (€10.8m) and EPS €0.16 (€0.19).
- Cash flow from operating activities amounted to €25.3m (€12.0m).
- Third quarter update: The year to date sales development is unchanged in local currency and the development in the third quarter to date is approximately 4% in local currency, positively impacted by timing within the quarter.
- In April, Oriflame signed a new Revolving Credit Facility amounting to €110m in total with its existing core relationship banks which replaces the previous €330m facility.
- In June the domicile of the Group was changed from Luxembourg to Switzerland. The change was done through a successful share-for-share exchange transaction with high acceptance level. The share of the new top holding company, Oriflame Holding AG, was listed on the Nasdaq Stockholm exchange on 23 June and the SDR of Oriflame Cosmetics S.A. was delisted on 2 July. As a result of the change in domicile, the interim report for January-June 2015 and hereafter will be issued by Oriflame Holding AG.
* Adjusted for non-recurring items of €1.3m in the second quarter 2014
** Adjusted for non-recurring items of €3.2m in the second quarter 2015
***Adjusted for additional non-recurring items of (€0.5m) in the second quarter 2015
6 months ended 30 June 2015
- Local currency sales decreased by 1% and Euro sales decreased by 5% to €608.9m (€637.6m).
- EBITDA amounted to €52.6m (€62.2m).
- Adjusted* operating margin was 6.9% (7.6%), negatively impacted by approximately 200 bps from currency movements, partly offset by hedging and positive price/mix effects as well as cost reductions, resulting in an adjusted* operating profit of €42.2m (€48.3m). Operating margin was 6.4% (7.3%) and operating profit €39.0m (€46.6m).
- Adjusted** net profit amounted to €23.1m (€24.0m) and adjusted** EPS amounted to €0.42 (€0.43). Net profit was €20.4m (€22.3m) and EPS €0.37 (€0.40).
- Cash flow from operating activities amounted to €49.4m (€28.9m).
* Adjusted for non-recurring items of €1.7m during the period 2014
* Adjusted for non-recurring items of €3.2m during the period 2015
**Adjusted for additional non-recurring items of (€0.5m) during the period 2015
CEO Magnus Brännström comments
“We are pleased with the development in our key growth markets in Latin America, Turkey, Africa & Asia contributing with 48 % of the total Group sales during the second quarter. The strong growth in China continues and is now an increasingly important part of the business.
Further substantial price increases to offset the devaluation in CIS, foremost in Russia and Ukraine, were implemented according to plan with adverse effect on volumes. Although a promising start in the third quarter, positively impacted by timing within the quarter, reversing the volume trend for the Group remains a challenge.
We continue to experience success from active online leaders as well as sales of Skin Care and Wellness sets and routines – two important strategic building blocks for all our markets.
The efforts of reducing our cost base and driving efficiency across all parts of the organisation continues.”