Oriflame Second Quarter Euro Sales Fall 8 Percent to 245 Million

Oriflame published its interim management statement for the six months ended June 30, 2021 on August 25. Second-quarter euro sales fell 8 percent to 245.0 million euros from 265.8 million euros. Local-currency sales fell 2 percent. Adjusted EBITDA rose to 53.0 million euros from 39.9 million euros, and the adjusted EBITDA margin was 21.6 percent compared with 15.0 percent. Adjusted operating profit was 44.8 million euros, and adjusted net profit was 20.6 million euros compared with 4.5 million euros.

Chief executive Magnus Brannstrom said April grew at a double-digit rate and then sales weakened in May and especially June. He cited a tough comparison, higher prices in some categories, weaker member activity and recruitment, and the cancellation of 2021 international conferences, with larger events moved to 2022. He said underlying profit stayed solid and was helped by one-time effects from those cancellations.

During the quarter the company issued 250 million euros of floating-rate senior secured notes and 550 million dollars of senior secured notes, both due 2026. Proceeds and cash redeemed older notes, and a 100 million euro revolving credit facility was extended to October 2025. Average external borrowing costs fell to 3.8 percent from 6.6 percent. Cash at June 30 was 90.3 million euros. First-half euro sales were 517.8 million euros, down 9 percent.