Oriflame reported its financial results for Q3 2024. Net Euro sales declined 19% in the quarter to $141.3 million with an adjusted EBITDA of $5.83 million. Year to date, Euro sales have dipped 21% to $470.5 million with an adjusted EBITDA of $19.5 million.
“The uncertain macroeconomic and geopolitical situation and adverse foreign exchange (FX) movements in several markets had a continued negative impact on the performance of the group in the third quarter,” the company wrote in a statement. “Adjusted EBITDA ended higher both in absolute and relative terms compared to the same quarter previous year, despite lower sales, where important savings from restructuring continues to support the results.”
While sales in Euro decreased in local currencies, there were some sequential improvements in total registered active members, and Turkey and Africa showed a growth increase of 5% in local currency sales.
The management’s cost reduction program, which was implemented in the third quarter of 2023, resulted in $11 million in savings in adjusted administrative expenses costs year on year, which was partially supported by certain accrual reversals during the quarter. Oriflame also sold its property in Cetes Hungary for $3.78 million and incorporated a subsidiary in South Africa, which will begin generating sales in Q2 2025.
“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 recapitalization opportunities,” the statement continued. “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.”
