Oriflame announced its financial results for the second quarter of 2026. Sales in Latin America saw a 6% boost, while sales in Türkiye and Africa declined 13% and sales in Europe and Asia fell 12% and 11% respectively. Adjusted EBITDA was -$5.3 million, reflecting lower sales. Adjusted gross margin fell by 480 bps year-over-year and was primarily driven by lower sales volume, an increase in inventory provisions and excess inventory liquidation to generate cash.
Ongoing cost-control initiatives and reductions in selling and administrative expenses helped mitigate the impact on profitability, while the company’s negative EBITDA impact was compensated by a strong working capital performance, particularly through a $17 million improvement in inventories and a $8 million contribution from receivables.
The company stated that it is rapidly progressing on its transformation agenda known as “Real Products, Real Prices and Real People,” including a new pricing strategy to improve value for money perception and a simplification of its opportunity offering. The planned transition to a network of European manufacturing partners is ahead of schedule, now expected to be completed by the third quarter, with 316 products awarded to new partners and 198 products already in production. To ensure a lean and results-focused organization, the company has also instituted a savings program and shifted to a modern, digital-first commercial planning.
