Long-term financial targets
- Oriflame Cosmetics aims to achieve local currency sales growth of approximately 10 percent per annum and an operating margin of 15 percent.
- Over the next five years, the Group will continue to invest in growth both organically, with capital expenditure on existing and new manufacturing facilities, and through expansion into new markets.
Financial achievements 12 months 2010
- Local currency sales increased by 8 percent and Euro sales in- creased by 15 percent to €1,513.6 million (1,316.6).
- Adjusted operating margins amounted to 11.1 percent (11.1), resulting in an adjusted operating profit of €168.1 million (146.8).
- Adjusted net profit amounted to €128.3 million (101.7).
- Adjusted EPS after dilution amounted to €2.25 (1.78).
- Cash flow from operating activities amounted to €90.3 million (131.7).
Where stated, profits are adjusted for restructuring costs in the EMEA region and Iran impairment.
Outlook 2011
- Operating margins are expected to improve compared with 2010, while sales growth for 2011 is expected to be 5–10 percent in local currency.
| Oriflame Annual Report 2010
Key figures
|
€ million unless stated otherwise |
2010 |
2009 |
|||
|
Sales |
1,513.6 |
1,316.6 |
|||
|
Gross profit |
1,002.5 |
874.8 |
|||
|
Gross margin, % |
66.2 |
66.4 |
|||
|
EBITDA |
184.4 |
167.0 |
|||
|
Adjusted operating profit |
2) 168.1 |
1) 146.8 |
|||
|
Adjusted operating margin, % |
2) 11.1 |
1) 11.1 |
|||
|
Adjusted net profit |
2) 128.3 |
1) 101.7 |
|||
|
Return on capital employed, ROCE, % |
34.4 |
35.9 |
|||
|
Cash flow from operating activities |
90.3 |
131.7 |
|||
|
Cash flow from operating activities, per share, € |
1.58 |
2.31 |
|||
|
Equity/assets ratio, % |
29.8 |
25.7 |
|||
|
Net interest-bearing debt |
3) 200.5 |
160.0 |
|||
|
Interest cover |
5.6 |
6.1 |
|||
|
Adjusted earnings per share, diluted, € |
2) 2.25 |
1) 1.78 |
|||
|
Closing sales force (‘000) |
3,767.1 |
3,468.1 |
|||
|
Average sales force (‘000) |
3,515.2 |
3,247.2 |
|||
|
Average number of full-time equivalent employees |
8,353 |
8,281 |
- Before restructuring costs in the EMEA region of €1.3m.
- Before restructuring costs in the EMEA region of €0.7m and the effect on operating profit from the Iran impairment of €10.1m.
- Net interest-bearing debt includes US loan fair value. The net interest-bearing debt would be €195.4m when US loan is measured at €/USD exchange rate of €1.36, reflecting the value of the corresponding currency swap.
Oriflame Cosmetics top 10 shareholders as at 31 December 2010
|
Shares |
Capital and votes, % |
|
|
Lazard Asset Management LLC (1) |
6,904,079 |
12.1 |
|
Stichting af Jochnick Foundation |
6,016,001 |
10.6 |
|
JP Morgan Asset Management Ltd. (2) |
5,059,081 |
8.9 |
|
Robert & Alexander af Jochnick and family |
4,392,732 |
7.7 |
|
Jonas af Jochnick and family |
4,130,400 |
7.2 |
|
Swedbank Robur Fonder AB (3) |
2,541,621 |
4.5 |
|
Baillie Gifford & Co (2) |
2,215,561 |
3.9 |
|
Jupiter Asset Management Ltd. (UK) (2) |
2,109,956 |
3.7 |
|
Templeton Investment Counsel LLC (2) |
1,367,353 |
2.4 |
|
SEB Investment Mgt / Trygg Liv (3) |
818,721 |
1.4 |
|
Other |
21,424,722 |
37.6 |
|
Total |
56,980,227 |
100 |
Sources:
- Disclosure notice received by Oriflame from the company on February 2011
- Capital Precision
- Euroclear
The share
- Oriflame Cosmetics was introduced on the NASDAQ OMX Nordic Exchange on 24 March 2004.
- On 31 December 2010, the number of shareholders and SDR holders was 8,483. Each SDR represents one share.
- During 2010, an average of 270,819 shares were traded per day on the NASDAQ OMX Nordic Exchange.
- The last price paid on 31 December 2010 was SEK 354.00 giving Oriflame a total market capitalisation of SEK 20.2 billion.
Dividend proposal
- Oriflame’s Board of Directors will propose to the 2011 AGM, a dividend of €1.50 (€1.25) per share, amounting to €85.5 million, corresponding to 67 percent of adjusted net profit.
