Oriflame announced its financial results for the fourth quarter and full year 2024. Sales in the fourth quarter decreased by 15% year over year to $183.9 million with an adjusted EBITDA of $5.78 million. Adjusted cash flow from operating activities during the quarter was $6.1 million.
Total 2024 sales fell by 20% year over year to $658.66 million with an adjusted EBITDA of $25.4 million. Adjusted operating profit was $1.85 million.
The company stated that its Beauty Community Model (BCM) was implemented at the end of the fourth quarter in 42 markets, representing more than 75% of the sales of the Group. The BCM is now considered to be an integrated and fully established setup within Oriflame and continues to show good results. BCM’s implementation and progress led to what the company calls “an encouraging trend” in its total members.
To reduce administrative expenses, the company implemented a cost reduction program in the third quarter of 2023 which has now created a 14% year-over-year decrease in adjusted administrative expenses.
“Although the company is facing uncertainties as to its ability to continue as a going concern due to the company’s challenging results during the past couple years and current liquidity, management believes that such uncertainties will be significantly reduced by the recapitalization and by the measures taken to drive positive business performance,” the company wrote in a statement. “The company, the shareholders and a consortium of bondholders representing more than 80% of the outstanding notes reached an agreement in March 2025, which will significantly reduce the Group’s existing debt and interest costs, as well as inject additional capital into the Group.”
On January 9, 2025, the company will transition its European production from its current factory in Poland to a network of select high-end European manufacturers. This closure will take place across two years and existing orders will be fulfilled or transferred to the new manufacturing partners.
Fourth quarter cash balance at the end of 2024 was $67.5 million, compared to $87.8 million at the end of 2023.
