Oriflame Third Quarter Sales Fall 19 Percent; Board Continues Recapitalization Talks

Oriflame said third-quarter 2024 euro sales fell 19 percent to 130.8 million euros from 161.7 million euros a year earlier, or 16 percent in local currency, as weaker membership and macroeconomic and geopolitical pressure hit every region except local-currency growth in Turkiye and Africa.

Adjusted EBITDA rose to 5.4 million euros from 4.1 million euros, lifting the margin to 4.2 percent from 2.5 percent as a cost-reduction program cut adjusted administrative expenses by 10.2 million euros year over year. Cash ended the quarter at 57.0 million euros, down from 78.3 million euros at the start of the quarter, with 15.5 million euros drawn on the revolving credit facility.

The board said it is actively exploring options to address the capital structure and is in discussions with a group of investors who hold a majority of its euro and dollar senior secured notes, with no assurance of an outcome. Oriflame also incorporated a South Africa subsidiary during the quarter, with sales expected to start in the second quarter of 2025, and sold the Cetes Hungary land and property for 3.5 million euros.