Switzerland-based Oriflame Cosmetics, the direct seller of cosmetics and beauty products, recently announced financial results for the third quarter of 2017. Local currency sales increased by 11 percent and euro sales increased by 6 percent to €295.3 million (€278.9 million).
For the three months ended September 30, 2017,
- Number of registered actives was stable at 2.6 million.
- EBITDA amounted to €40.0 million (€30.8 million).
- Operating margin was 11.0% (9.0%), negatively impacted by 160 bps from currencies, and operating profit was €32.5 million (€25.2 million).
- Net profit was €17.4m million (€12.7 million) and diluted EPS €0.30 (€0.23). Following the successful refinancing of the Revolving Credit Facility during the quarter, the net profit was negatively impacted by a one-off amortisation of the replaced facility’s capitalised fees of around €1.0 million.
- Cash flow from operating activities was €11.2 million (€-5.8m million).
- During the quarter, Oriflame signed a new Revolving Credit Facility amounting to €160 million in total. The new five-year facility replaced the €110 million facility.
- The year to date sales development is approximately 10 percent in local currency and the development in the fourth quarter to date is approximately 11 percent in local currency.
For the first nine months of 2017:
- Local currency sales increased by 10 percent and Euro sales increased by 10 percent to €983.0 million (€894.3 million).
- EBITDA amounted to €128.3 million (€99.1 million).
- Operating margin was 10.5 percent (8.6%), negatively impacted by 10 bps from currencies, and operating profit was €102.8 million (€77.2 million).
- Net profit was €56.8 million (€41.5 million) and diluted EPS €0.99 (€0.74).
- Cash flow from operating activities amounted to €43.7 million (€51.4 million).
“During Q3 2017, we continued to execute on our strategic priorities resulting in yet another quarter of healthy growth and improved profitability,” said CEO Magnus Brännström. “The overall performance in Asia and Turkey remained strong, although with variations within the region. The growth in the CIS continued, supported by sustained high productivity levels. Latin America was affected by the earthquakes and negative timing. Our efforts to improve the capacity utilisation in manufacturing continued to render results during the quarter and the number of registered actives was stable. The local currency sales development for the Group in the fourth quarter-to-date is in line with our long-term financial target.”
To read the full Oriflame Q3 2017 financial report, click here.