Direct sales in the doldrums? Oriflame FY2018 sales down 3 percent to €1.319 billion

Direct sales in the doldrums? Oriflame FY2018 sales down 3 percent to €1.319 billion

Oriflame has reported its results for the financial year ended December 31, 2018. The Swedish direct sales company saw sales drop 3 percent in Euro terms to €1.319 billion (+3 percent in local currency).

Skin Care and Wellness were the stars of the show, both increasing their share of sales by a percentage point, at the expense of Colour Cosmetics and Fragrances. The online sales channel also reported impressive growth, with 96 percent of the company’s global orders placed online and, of those, orders placed via mobile devices broke the 50 percent barrier for the first time.

“2018 has been a year of mixed performance for Oriflame,” said CEO Magnus Brannstrom. “On one hand we faced challenging market conditions in some of our key markets and difficult comparables with the 50th anniversary activities prior year. On the other hand, our strategic categories – Skin Care and Wellness – continued to increase their share of the overall sales and online activities remained on high levels. While the slower development in Asia & Turkey during the fourth quarter was disappointing, the improved sales momentum in most other regions demonstrates the strength of our balanced geographical footprint. Despite currency headwinds and a changed geographical mix, we are pleased to report a stable underlying profitability for the quarter. The sales development in the first quarter to date is negatively impacted by catalogue timing and public holidays. However, the underlying development still reflects the challenges we continue to face in some of our key markets. We are taking measures and remain committed to return to long-term profitable growth.”

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