Oriflame Cosmetics, a Switzerland-based seller of beauty products, has reported financial results for the fourth quarter and full year ended December 31, 2017.
For the three months ended December 31, local currency sales increased by 14 percent, slightly impacted by positive timing. Euro sales increased by 7 percent to €380.1 million (€355.1 million). The number of registered actives increased by 2 percent to 3.1 million. Operating margin was 14.8 percent (11.8 percent), negatively impacted by 210 bps from currencies, and operating profit was €56.3 million (€42.0 million).
For the 12 months ended December 31, local currency sales increased by 11 percent and Euro sales increased by 9 percent to €1,363.1 million (€1,249.4 million). Euro sales in the largest market in each global business area amounted to:
- Russia €241.5 million (€210.7 million)
- China €190.4 million (€139.1 million)
- Mexico €88.5 million (€81.2 million)
- Poland €51.5 million (€47.6 million)
Operating margin was 11.7 percent (9.5 percent), negatively impacted by 60 bps from currencies, and operating profit was €159.0 million (€119.2 million). Net profit was €92.6 million (€66.7 million) and diluted EPS €1.62 (€1.18).
“2017 was another year of healthy Euro growth and double-digit local currency growth, also reflected in the fourth quarter,” said CEO Magnus Brännström. “We delivered very strong profitability improvements this year, above our expectations. Our strategic categories—Skin Care and Wellness sets and routines—served as significant drivers of growth and price mix development, with further results achieved by the efficiency measures in manufacturing and supply chain. We have now spent over 50 years of constantly adopting to changing and challenging environments, a reality we will continue to be faced with.
“Looking ahead, I believe our social direct selling business model, online positioning and asset-light company structure make Oriflame more relevant than ever,” he said. “We stay committed to our long-term financial targets—we have a more balanced geographical footprint with growth opportunities and the right people to make it happen.”
To read the full Oriflame Q4 report, click here.
