Interim report 1 January - 30 June 2010

Three months ended 30 June 2010

• Local currency sales increased by 9% and Euro sales increased by 19% to EUR375.0m (EUR315.5m).
• Average size of the sales force increased by 5% to 3.6m consultants and closing sales force was up by 4%.
• EBITDA before restructuring costs amounted to EUR44.3m (EUR38.7m).
• The operating margin before restructuring costs was 10.1% (10.3%) resulting in an operating profit of EUR37.9m (EUR32.3m).
• Net profit before restructuring costs amounted to EUR29.5m (EUR22.6m).
• EPS after dilution and before restructuring costs amounted to EUR0.52 (EUR0.40).
• Cash flow from operating activities amounted to EUR22.7m (29.9m).
• Business conditions in Iran have deteriorated and this development has escalated after the close of the quarter. For this reason Oriflame is now evaluating its options in this market.

Six months ended 30 June 2010

• Local currency sales increased by 6% and Euro sales increased by 12% to EUR736.8m (EUR656.8m)
• Net profit before restructuring costs amounted to EUR66.7m (EUR46.8m).
• EPS after dilution and before restructuring costs amounted to EUR1.17 (EUR0.82).
• Cash flow from operating activities amounted to EUR43.4m (EUR42.5).

"As planned we have during the spring focused considerable resources on top line growth activities, and we start to see effects in line with our expectations during the second quarter. These initiatives will, as previously communicated, hold back profitability in the short term but we are happy with the development and our outlook for the year remains", CEO Magnus Brännström comments.

Report in PDF: http://hugin.info/134730/R/1436982/381856.pdf

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Source: Oriflame Cosmetics via Thomson Reuters ONE