Year-end report 1 January - 31 December 2011

2012-02-17 07:15

Three months ended 31 December 2011

  • Local currency sales decreased by 1% and Euro sales decreased by 7% to €408.7m (€440.1m).
  • Average size of the sales force decreased by 5% to 3.4m consultants and closing sales force was down by 4%.
  • EBITDA amounted to €50.5m (€68.2m).
  • Adjusted operating margin was 12.8% (13.9%) resulting in an adjusted operating profit of €52.2m (€61.0m).
  • Adjusted net profit amounted to €35.0m (€55.7m) and adjusted EPS after dilution amounted to €0.61 (€0.97).
  • Cash flow from operating activities amounted to €90.2m (€65.2m).

Twelve months ended 31 December 2011

  • Local currency sales increased by 3% and Euro sales decreased by 1% to €1,493.8m (€1,513.6m). Excluding Oriflame's business in Iran, sales growth was 4% in local currency.
  • EBITDA amounted to €182.2m (€184.4m).
  • Adjusted operating margin was 11.0% (11.1%) resulting in an adjusted operating profit of €164.1m (€168.1m).
  • Adjusted net profit amounted to €105.7m (€128.3m) and adjusted EPS after dilution amounted to €1.86 (€2.26).
  • Cash flow from operating activities amounted to €135.3m (€94.8m).
  • Oriflame's Board of Directors will propose a dividend of €1.75 (€1.50) per share, amounting to €99.8m, corresponding to 94% of adjusted net profit.
  • Oriflame's long term financial targets - to achieve local currency sales growth of around 10% per annum and to reach an operating margin of 15% - remain. For 2012, the focus is to reverse the sales trend and return to growth with improved operating margin.

"2011 was a challenging year. The conditions in our core markets remained difficult and we had a set-back in recruitment in the end of the third quarter. Despite these circumstances we deliver sales growth in local currency as well as a strong improvement in the underlying profitability for the full year. We will continue to explore our geographical footprint, carry out our strategic initiatives and further strengthen our brand. For 2012, the focus is to reverse the sales trend and return to growth with improved operating margin," CEO Magnus Brδnnstrφm comments.

For further information, please contact:

Magnus Brδnnstrφm, Chief Executive Officer Telephone: +352 691 151 930
Gabriel Bennet, Chief Financial Officer Telephone: +41 798 263 713
Joakim Banestig, Sr. Director Investor Relations Telephone: +41 791 033 521
Johanna Palm, Sr. Manager Investor Relations Telephone: +46 765 422 672