Interim Management Statement 1 January - 30 June 2023

2023-07-21 08:00

Three months ended 30 June 2023

• Euro sales decreased by 14% to €181.9m (€211.1m) and local currency sales decreased by 7%.
• The adjusted EBITDA amounted to €11.9m (€21.8m) and the adjusted EBITDA margin was 6.6% (10.3%).
• The adjusted operating profit was €5.9m (€14.2m) and the adjusted operating margin was 3.3% (6.7%). The currency impact on the adjusted operating margin was 200 bps negative.
• The adjusted net profit was €-1.2m (€16.1m).
• The adjusted cash flow before financing activities was €-1.7m (€-11.1m restated).

Six months ended 30 June 2023

• Euro sales decreased by 12% to €390.2m (€441.0m) and local currency sales decreased by 9%.
• The adjusted EBITDA amounted to €28.7m (€44.0m) and the adjusted EBITDA margin was 7.4% (10.0%).
• The adjusted operating profit was €16.3m (€28.7m) and the adjusted operating margin was 4.2% (6.5%). The currency impact on the adjusted operating margin was 70 bps negative.
• The adjusted net profit was €-8.0m (€25.9m).
• The adjusted cash flow before financing activities was €-17.9m (€-22.5m restated).

Significant events during and after the quarter

• Oriflame appointed Anna Malmhake as its new Chief Executive Officer and President. Anna started her new position on 1^st June 2023 and takes over after previous CEO Magnus Brännström, who announced his decision to step down after 18 years as CEO. Anna Malmhake has extensive experience from leadership positions in several global consumer goods companies. She first joined Oriflame as Member of the Board in 2014.
• Following the strategic review of certain assets in Russia, Oriflame signed an agreement to sell 100% of the shares of Cetes Cosmetics LLC on 28 April 2023, previously classified as assets held-for-sale. The transaction was successfully completed during the quarter after receiving all necessary approvals from authorities. A total net consideration of €28.0m was received from the buyer Arnest LLC during the quarter, which included €25.0m in cash and the shares of a Hungarian legal entity with certain assets. The total transaction resulted in a net gain of €8.1m, which includes the reversal of currency translation adjustments recycled to the income statement.
• Latest updated ratings from Fitch and S&P are B-/B- from both agencies.

Other
Conference call for the financial community The company will host a conference call on Friday 21 July 2023 at 10.00 CET.
Participant access numbers:
Sweden: +46 (0)8 5051 0031
United Kingdom: +44 (0) 207 107 0613
United States: +1 (1) 631 570 5613
Denmark: +45 3 2727526
Finland: +358 94 2450051

The conference call will also be audio web cast in "listen-only" mode through Oriflame's website: www.oriflame.com or through the following link https://oriflame-ir.creo.se/230721

For further information, please contact:

Anna Malmhake, Chief Executive Officer Tel: +44 776 634 7410

Carl Rogberg, Chief Financial OfficervTel: +44 773 899 8737

Vanessa Wendle,[email protected] Tel: +41 799 220 173