Oriflame increases net profit by 9.5% in Q1

According to Oriflame local currency sales for the 3 months ended 31 March 2012 increased by 2% and Euro sales were in line with last year €395.7m (€396.8m). Average size of the sales force decreased by 5% to 3.6m Oriflame Consultants and closing sales force was down by 6%.

EBITDA amounted to €55.0m (€53.3m). Adjusted operating margin was 12.0% (11.8%) resulting in an adjusted operating profit of €47.7m (€46.7m). Adjusted net profit amounted to €34.5m (€31.5m) and adjusted EPS after dilution amounted to €0.61 (€0.55). Cash flow from operating activities improved to €58.1m (€17.4m).

CEO Magnus Brännström commented: "I am pleased with the first quarter results, despite the lower average sales force, primarily coming from the setback in recruitment during the end of the third quarter 2011. Our efforts to return to growth and improve profitability have led to promising results on sales, productivity and margins - however, market dynamics remain challenging. It is also important to highlight the cash flow, further reducing the net debt. In addition to these achievements we will in the coming quarter focus on growth of the sales force and thereby lay a solid foundation for the future."