Oriflame released its financial results for the fourth quarter and full year 2023. Revenue during the fourth quarter fell 25% to $215 million with an adjusted EBITDA of $6.7 million. Adjusted operating profit was $300,000.
Revenue for the full year 2023 was down by 19% to $811 million, with local currency sales decreasing by 12%. Adjusted EBITDA was $42 million, down from $115 million in 2022.
The company emphasized its ongoing cost reduction program which is working to increase profitability, reduce working capital and ensure continued strategic investments in product and market development. The program has already resulted in more than $43 million in improvement during the third quarter of 2023, primarily driven by strong inventory management execution.
Adverse exchange rates had a significant impact on Euro sales, while lower recruitment negatively impacted sales in Latin America. Oriflame has enlisted Rothschild & Co to advise on its refinancing options and has approved the sale of certain property and assets which total $9.3 million.
