Oriflame USA
October 23, 2026
SCHAFFHAUSEN, Switzerland - October 23, 2026
Oriflame's sales fell by nearly a quarter in the third quarter and its active community of consultants and customers shrank by more than a quarter, and the Swedish-founded beauty company warned in its latest interim report that it expects to need additional funding that has not yet been committed, a situation it said may cast significant doubt on its ability to continue as a going concern.
In its interim management statement for the period ended September 30, 2026, released Friday, Oriflame reported third-quarter sales of â'¬97.6 million, down 23 percent from â'¬126.0 million a year earlier. Sales fell in every region: 26 percent in Türkiye and Africa, 22 percent in Asia, 19 percent in Europe and the CIS, and 5 percent in Latin America. The company said its decision to stop selling products made at its Polish factory to outside customers took about 4 percentage points off the quarter's sales; excluding that, sales would have fallen about 18 percent.
The size of the field force is at the center of the decline. Oriflame's active community, which counts members who have placed orders in recent sales campaigns, stood at 1.023 million at the end of September, compared with 1.388 million a year earlier, a 26 percent drop. Unit sales fell 25 percent, only partly offset by a 2 percent positive price and mix effect. Regionally, the company cited a smaller sales force and lower activity in Europe and the CIS, lower recruitment and sales force activity across Asia, and weaker activity plus macroeconomic and geopolitical pressures in Türkiye and Africa.
Adjusted EBITDA was a loss of â'¬1.5 million, compared with a profit of â'¬0.5 million in the third quarter of 2025. Cost cuts were deep but not deep enough to offset the lost sales: selling and marketing expenses fell 25 percent to â'¬31.9 million, largely on lower marketing spending, and administrative expenses fell 15.5 percent to â'¬33.0 million as restructuring reduced personnel, IT and travel costs. Oriflame recorded another â'¬7.7 million in non-recurring costs during the quarter, which it excludes from adjusted figures. Its adjusted net loss for the quarter was â'¬19.9 million.
For the first nine months of the year, sales were down 16 percent at â'¬338.5 million, adjusted EBITDA was a loss of â'¬12.5 million against a small profit a year earlier, and the adjusted net loss reached â'¬63.5 million.
Cash remains tight. Oriflame ended September with â'¬23.2 million in cash, down from â'¬25.7 million at the start of the quarter and â'¬69.0 million at the end of 2025. The company generated â'¬3.7 million in adjusted cash flow before financing activities in the quarter, helped by reductions of â'¬8.3 million in inventory and â'¬5.3 million in receivables. It also completed the transfer of its manufacturing operations in India to a buyer that will now supply it under a long-term manufacturing agreement, a deal that brought in â'¬5.0 million in cash. Total debt stood at â'¬294.6 million, well below the â'¬834.1 million of a year earlier following the recapitalization the company completed in December 2025.
In the going-concern note to its interim financial statements, Oriflame's board and management said the group's forecasts indicate that additional funding is expected to be required during the assessment period to maintain sufficient liquidity and meet obligations as they come due, and that such funding had not been committed when the statements were approved. The company listed material uncertainties including its ability to hit its sales and cash-flow forecasts, to secure that funding, and to meet covenant requirements under its revolving credit facility if testing were triggered earlier than expected. It also said that, although a review of prior-period cross-border activities was completed without any assessment being issued, residual uncertainty remains about potential future cash outflows. The board concluded that it was still appropriate to prepare the accounts on a going-concern basis, citing the December 2025 refinancing, existing financing arrangements, potential additional funding sources and management actions.
On strategy, Oriflame said it is moving to a digital-first commercial model, expanding social commerce, testing AI tools for marketing, recruitment and customer engagement, simplifying onboarding and rolling out a new rewards and incentive framework for sellers. The results were presented by Kenneth Benaim Campbell, who was named chief executive officer in August, and Jog Dhody, the company's chief financial and operating officer.
Oriflame was founded in Sweden in 1967 and sells skincare, cosmetics, fragrances, personal care and wellness products through independent Beauty Entrepreneurs in more than 60 markets. Its parent holding company is incorporated in Jersey.