Oriflame - Year end report

Year-end report 1 January - 31 December 2009
 
Three months ended 31 December 2009
 
§  Local currency sales increased by 14% and Euro sales decreased by 2% to
¤382.5m (¤391.8m).
 
§  Average size of the sales force increased by 18% to 3.3m consultants and
closing sales force was up by 18%.
 
§  EBITDA amounted to ¤59.1m (¤74.3m).
 
§  Restructuring of operations in the EMEA region and global supply is estimated
to lead to restructuring charges of ¤5 - 7m of which ¤1.3m was taken in Q4 2009
and the remaining is expected during the next 12-24 months.
 
§  Operating margin before restructuring costs was 14.4% (16.8%) resulting in an
operating profit of ¤55.0m (¤66.0m).
 
 §  Net profit before restructuring costs amounted to ¤41.5m (¤39.3m).
 
 §  Cash flow from operating activities amounted to ¤100.9m (¤86.2m).
 
 §  EPS after dilution and before restructuring costs amounted to ¤0.73 (¤0.69).
 
 §  Credit facility of ¤400m secured
 
Twelve months ended 31 December 2009
§  Local currency sales increased by 15% and Euro sales amounted to ¤1,316.6m
(¤1,319.7m).
 
§  Operating margins before restructuring costs amounted to 11.1% (14.2%)
resulting in an operating profit of ¤146.8m (¤187.3m).
 
§  Net profit before restructuring costs amounted to ¤101.7m (133.1m).
 
  §  Diluted EPS before restructuring costs amounted to ¤1.78 (¤2.36). Diluted
EPS after restructuring costs amounted to ¤1.76 (¤2.20).
 
  §  Cash flow from operating activities improved to ¤131.7m (¤91.3m)
 
  §  Oriflame's Board of Directors will propose an unchanged dividend of ¤1.25
(¤1.25) per share, amounting to ¤71.0m, corresponding to 70% of net profit
before restructuring costs.
 
 §  It was decided to build a new 150 - 200m unit production facility and
distribution centre in Russia with an expected capex of ¤125 - 175m over four
years.
 
§  Outlook: Sales growth for 2010 is expected to be in line with Oriflame's long
term target of around 10% in local currency and operating margins are expected
to be above 12% at current exchange rates.
 
Long term financial targets are to achieve local currency sales growth of around
10% per annum and to reach 15% operating margin.
 
[HUG#1382512]
 
Release in PDF: http://hugin.info/134730/R/1382512/341387.pdf