The Sweden-based direct sales provider has reported steady local currency sales for its fourth quarter, a figure that was up on the previous third quarter when sales were hard hit by the European economy.
For the current quarter the company said that sales fell by 2 percent in terms of local currency, but were rose slightly in Euro sales, coming in at €410.6m , compared to €408.7m for the corresponding period in 2011.
The results came in the company’s all important Christmas and holiday season, when there is a seasonal spike in sales, but were also strong considering the company reduced its direct sales force by approximately 7 percent during the period to 3.2m.
Oriflame CEO Magnus Brännström said he was pleased to see that the sales had developed in a positive direction compared to the previous quarter, and focused on the cash flow and operation margins of the business.
A challenging year that still saw improved margins
“Despite the challenges we have seen during the year, we have achieved improved operating margin and an excellent cash flow,” said Brännström.
“For 2013, we remain confident with the strategy laid out for the company which provides a solid base for our ambitions to return to sales growth.”
Indeed, the CEO’s focus on the fundamentals of the business were reflected by the fact that the EBITDA rose from €50.5m in the corresponding period last year, to reach €64.1m this year, while adjusted net profit rose from €35.0m to €37.2m.
Previous quarter and full year results
In the previous third quarter, the company had announced that Euro sales were down by 4 per cent to €309.4m as the company’s sales forced declined by 8 percent during the period.
At the time the company blamed the lower number of sales representatives, combined with the weak macro economic situation that has continued to affect much of Europe during 2012.
For the full year 2012 Euro sales dipped slightly to €1.48bn, while the EBITDA rose from €182.2m in 2011, to reach €204.2m this year, while adjusted net profit rose from €105.7m to €121.5m.