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Consolidated statements of cash flows

Year ended 31 December

€’000

Note

2010

2009

Operating activities

Net profit before income tax

135,217

117,253

Adjustments for:

Depreciation and impairment of property, plant and equipment

8, 12, 14

21,802

18,823

Amortisation of intangible assets

8, 13

4,179

2,726

Change in fair value of borrowings

5,146

Impairment Iran

29

7,139

Deferred income

(28)

(84)

Share incentive plan

1,116

Unrealised exchange rate differences

1,178

(15,257)

(Profit)/loss on disposal of property, plant and equipment, intangible assets and investment property

(496)

78

Financial income

(12,401)

(564)

Financial expenses

40,058

31,247

Operating profit before changes in working capital and provisions

202,910

154,222

Increase in trade and other receivables, prepaid expenses and derivative financial assets

(19,368)

(3,066)

(Increase)/decrease in inventories

(66,916)

19,460

Increase in trade and other payables, accrued expenses and derivative financial liabilities

24,320

9,312

Decrease in provisions

(1,211)

(2,982)

Cash generated from operations

139,735

176,946

Interest and bank charges paid

(25,297)

(27,494)

Income taxes paid

(24,137)

(17,765)

Cash flow from operating activities

90,301

131,687

Investing activities

Proceeds on sale of property, plant and equipment, intangible assets and investment property

1,587

311

Interest received

4,490

564

Purchases of property, plant and equipment, and investment property

(62,675)

(21,664)

Purchases of intangible assets

(5,404)

(7,660)

Cash flow used in investing activities

(62,002)

(28,449)

Financing activities

Proceeds from borrowings

216,677

311,040

Repayments of borrowings

(202,750)

(310,000)

Proceeds from sale of own shares

114

Proceeds from issuance of new shares

3,947

3,487

Payments of finance lease liabilities

(89)

Dividends paid

(70,978)

(70,307)

Cash flow used in financing activities

(53,193)

(65,666)

Change in cash and cash equivalents

(24,894)

37,572

Cash and cash equivalents at 1 January

107,092

68,310

Effect of exchange rate fluctuations on cash held

3,835

1,210

Cash and cash equivalents at the end of the year net of bank overdrafts

18

86,033

107,092

The attached notes form an integral part of the consolidated financial statements.



Consolidated statements of cash flows | Oriflame Annual Report 2010
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