Oriflame Q3 euro sales up despite fall in sales representatives

Oriflame Q3 euro sales up despite fall in sales representatives

Swedish direct sales giant Oriflame has announced a 5 percent rise in euro sales to €355.1m (€339.5m), while the number of active sales representatives fell 7 percent to three million.

Local currency sales increased by 8 percent while operating margin was 11.8 percent, impacted by -110 bps from currencies while operating profit was EURO42.0m. This was ‘favourably impacted by a VAT income related to the Russian tax case.’ Net profit was €25.2m.

CEO Magnus Brännström says, “2016 was a year when we made significant steps to improve the overall position of Oriflame and when the success from our online leaders and the sales of Skin Care and Wellness sets and routines reached new levels.
“+It was a year when we returned to Euro growth, delivered double-digit local currency growth and increased the profitability each consecutive quarter – despite challenging market conditions and deteriorating macro. 2017 marks the 50th anniversary of Oriflame and we are reaching this milestone stronger than ever before, equipped with a good underlying momentum, solid strategy and strong financial position. At the same time, many of our markets continue to be volatile and face highly uncertain geopolitical and macroeconomic conditions. The first quarter has started in a promising way and we will continue to deliver on our strategy – ready to meet an ever-changing world during the next 50 years.”