Oriflame Third Quarter Euro Sales Fall 21 Percent to 221.4 Million

Oriflame said third quarter euro sales fell 21 percent to 221.4 million euros, from 280.8 million euros a year earlier. Sales in local currencies fell 22 percent. Unit sales dropped 24 percent, only partly offset by a 2 percent price and mix gain. The average number of members fell, and the company ended September with about 2.25 million members, down from about 2.77 million a year earlier.

Adjusted EBITDA still rose 4 percent to 48.3 million euros, and the adjusted EBITDA margin widened to 21.8 percent from 16.5 percent. Adjusted operating profit was 40.4 million euros. Adjusted net profit was 22.2 million euros, up from 8.1 million euros. Management said a one-time release of staff incentive accruals lifted the operating margin by 620 basis points.

Chief executive Magnus Brannstrom said weak activity and recruiting, plus limits on meetings and events, carried over from the end of the second quarter into the third, especially in parts of Asia and Africa. Euro sales fell in every region. Cash was 99.4 million euros and total debt was 783.9 million euros. Directors authorized the interim statement on October 21, 2021.