Oriflame shares soar as 4Q profit beats expectations

Oriflame shares soar as 4Q profit beats expectations

Shares in Oriflame rose 16 percent after the company released its results for the fourth quarter of fiscal 2017, according to a report published by Bloomberg.

According to Bloomberg’s account, Oriflame’s results often surprise analysts, with more than half of the last 20 quarters producing results that shocked the market.

For the three months ended December 31, 2017 Oriflame reported a sales increase of 14 percent in local currency terms, up 7 percent in Euros to €380.1 million. Over the year, sales reached €1.363.1 million, a rise of 9 percent.

“2017 was another year of healthy Euro growth and double-digit local currency growth, also reflected in the fourth quarter,” said CEO Magnus Brännström. “We delivered very strong profitability improvements this year, above our expectations. Our strategic categories – Skin Care and Wellness sets and routines – served as significant drivers of growth and price mix development, with further results achieved by the efficiency measures in manufacturing and supply chain. We have now spent over 50 years of constantly adopting to changing and challenging environments, a reality we will continue to be faced with. Looking ahead, I believe our social direct selling business model, online positioning and asset-light company structure make Oriflame more relevant than ever. We stay committed to our long-term financial targets – we have a more balanced geographical footprint with growth opportunities and the right people to make it happen.”

Leave a reply

Your email address will not be published. Required fields are marked *