Direct sales company Oriflame has reported a 7 percent decline in euro sales to €321.9 million, while local currency sales increased by 1 percent.
The number of registered actives decreased by 1 percent to 2.8 million, while EBITDA amounted to €51.9m (€47.9m) and to €51.5m* in accordance with IFRS. Net profit, meanwhile, reached €25.7m while the operating margin was 12 percent.
CEO Magnus Brännström said, “Despite facing significant currency headwinds, we are pleased to report an improved operating margin for the quarter. However, the overall sales development during the second quarter was weak due to challenging market conditions in key markets such as Russia, Indonesia and Turkey.
“Sales were in most regions further negatively impacted by less successful product launches as well as timing of catalogues and conferences. We are taking measures to enhance sales growth by emphasised focus on categories that help us drive activity and recruitment. Oriflame has a solid financial position and we are confident in our ability to return to sustainable growth.”