Oriflame 2023 Sales Fall 19 Percent to 750.9 Million Euros, Hires Rothschild for Refinancing

Oriflame Holding AG reported a 19 percent decline in euro sales for 2023 to 750.9 million euros, from 925.4 million euros, with sales down 12 percent in local currencies.

In the fourth quarter, euro sales fell 25 percent to 199.1 million euros from 264.4 million euros, and local currency sales fell 15 percent. The average number of members declined to 1.6 million from 2.0 million. Adjusted EBITDA for the quarter was 6.2 million euros, compared with 37.8 million euros a year earlier, and the adjusted EBITDA margin fell to 3.1 percent from 14.3 percent.

For the full year, adjusted EBITDA was 39.0 million euros, down from 106.5 million euros, and the adjusted net result was a loss of 81.8 million euros. The company recorded an impairment loss of 230.7 million euros on goodwill, which was fully written off, and 17.5 million euros on its brand.

Sales fell in every region in the fourth quarter, including declines of 29 percent in Europe and CIS, 19 percent in Latin America, 22 percent in Asia and 28 percent in Turkiye and Africa in euro terms.

Oriflame said it has hired Rothschild and Co to advise on refinancing options, will not pay dividends during 2024 and has approved the sale of certain property and assets valued at 8.6 million euros. Its cost program is expected to deliver 45 million euros in savings, with restructuring costs totaling 27.5 million euros, and working capital improved by more than 40 million euros.