WATERLOO, Belgium—Oriflame reported on its year end financials.
Three months ended Dec. 31, 2009
- Local currency sales increased by 14 percent and Euro sales decreased by 2 percent to EUR382.5m (EUR391.8m).
- Average size of the sales force increased by 18 percent to 3.3m consultants and closing sales force was up by 18 percent.
- EBITDA amounted to EUR59.1m (EUR74.3m).
- Restructuring of operations in the EMEA region and global supply is estimated to lead to restructuring charges of EUR5 to 7m, of which EUR1.3m was taken in fourth quarter (Q4) 2009 and the remaining is expected during the next 12 to24 months.
- Operating margin before restructuring costs was 14.4 percent (16.8 percent) resulting in an operating profit of EUR55.0m (EUR66.0m).
- Net profit before restructuring costs amounted to EUR41.5m (EUR39.3m).
- Cash flow from operating activities amounted to EUR100.9m (EUR86.2m).
- EPS after dilution and before restructuring costs amounted to EUR0.73 (EUR0.69).
- Credit facility of EUR400m secured.
Twelve months ended Dec. 31, 2009
- Local currency sales increased by 15 percent and Euro sales amounted to EUR1,316.6m (EUR1,319.7m).
- Operating margins before restructuring costs amounted to 11.1 percent (14.2 percent) resulting in an operating profit of EUR146.8m (EUR187.3m).
- Net profit before restructuring costs amounted to EUR101.7m (133.1m). Diluted EPS before restructuring costs amounted to EUR1.78 (EUR2.36). Diluted EPS after restructuring costs amounted to EUR1.76 (EUR2.20).
- Cash flow from operating activities improved to EUR131.7m (EUR91.3m).
Oriflame's Board of Directors will propose an unchanged dividend of EUR1.25 (EUR1.25) per share, amounting to EUR71.0m, corresponding to 70 percent of net profit before restructuring costs. It was decided to build a new 150 to 200munit production facility and distribution center in Russia with an expected capex of EUR125 to 175m over four years.
Sales growth for 2010 is expected to be in line with Oriflame's long term target of around 10 percent in local currency and operating margins are expected to be above 12 percent at current exchange rates. Long-term financial targets are to achieve local currency sales growth of around 10 percent per annum and to reach 15 percent operating margin.