Oriflame announces big increase in Q4 and full-year profits

By Simon PItman

- Last updated on GMT

Related tags United states dollar Euro

Oriflame has revealed that its profits for the fourth and final quarter as well as full year 2010 increased significantly on the back of sales gains and positive exchange rates.

For the final quarter ending in December the company said that adjusted net profits increased by 34 per cent, from €41.5m to €55.7m – a figure that was also positively impacted by a €10m deferred tax income.

For the full year the adjusted net income gains were not so dynamic, rising 26 percent, from €101.7m to reach €128.3m.

The EBITDA figure for the fourth quarter increased by 15 per cent to €68.2m, while for the full year it increased by 10 per cent to €184.4m.

Q4 sales figures weaker than expected

Back in January Oriflame had said that its preliminary fourth quarter results – which did not include the net profit figures - were ‘slightly weaker’ than expected, after it was hit by falling demand in both the EMEA and CIS markets.

The sales results for the quarter rose by 8 per cent in local currency and by 15 per cent in Euro currency, which was also attributed to problems with new product registrations in the CIS markets.

Euro sales for the quarter amounted to €439.9m, up from €382.5m in the same period last year, when Euro currency income had fallen by 2 per cent for the quarter due to weakened sales and currency translations.

Full year results below expectations

Full year results were also slightly below the company’s expectations, partly due to the weaker than expected performance in the fourth quarter.

The full year results were up 8 per cent in local currencies and rose by 15 per cent in Euro currency to €1.513bn, compared to €1.316bn in 2009, when Euro currency income was stagnant compared to the figure for 2008.

The company also revealed the outlook for the rest of the year, stating that the performance is expected to improve in 2011 compared with 2010, with sales growth predicted to be in the range of 5 t0 10 per cent.

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