Oriflame Second Quarter Sales Fall 19 Percent; Exits Sri Lanka and Belarus, Explores Recapitalization

Oriflame reported second-quarter 2024 euro sales down 19 percent from a year earlier, and down 15 percent in local currencies. The company cited fewer members and lower activity in all regions, along with economic and geopolitical pressures including the Russia-Ukraine war. Adjusted EBITDA fell to 6.0 million euros from 11.9 million euros, and the margin dropped to 4.0 percent from 6.6 percent.

Oriflame stopped operating in Sri Lanka after disappointing results and halted operations in Belarus because of weaker performance and operating challenges, and both entities will be formally liquidated. In early July it began selling in Malta, Luxembourg, Belgium, France, Italy and Austria, giving it a presence in every EU market. Cash rose to 78.3 million euros at quarter-end.

On August 29, 2024, the board of Oriflame Holding designated four subsidiaries, including Oriflame Cosmetics AG and Oriflame Software, as unrestricted subsidiaries under the indenture for its senior secured notes due 2026. The company said it is exploring options to address its capital structure, evaluating possible recapitalization and in active talks to raise financing against those subsidiaries' assets.