Switzerland-based Oriflame reported a 3 percent uptick in sales in 2016.
The beauty company posted annual revenue of €1.2 billion* (US$1.3 billion), reversing several years of declining euro sales. In local currencies, revenue rose 12 percent from the prior year. Earnings for the year were €1.18 per share.
Russia accounted for 17 percent of group sales in 2016, China for 11 percent, Mexico for 7 percent and Poland for 4 percent.
“2016 was a year when we made significant steps to improve the overall position of Orifame and when the success from our online leaders and the sales of skincare and wellness sets and routines reached new levels,” said Magnus Brännström, Oriflame CEO.
In the fourth quarter, revenue was up 5 percent to €355.1 million (US$374.6 million), while local currency sales increased 8 percent. On average, analysts polled by Reuters had expected revenue of €350 million.
The number of registered active Consultants—those who have placed an order in the past three months—fell 7 percent to 3 million.
The company cleared a profit of €25.2 million in the quarter, with earnings at €1.18 per share, up from €0.62 a year earlier. Operating profit was €42.0 million, versus the analyst consensus of €40.7 million.
Management said the first quarter is off to a strong start, with 11 percent local currency growth to date.
*At the time of this writing, €1.00 was equal to US$1.05.
