Oriflame Holding AG

02/24/2021 | Press release | Distributed by Public on 02/24/2021 02:04

Interim Management Statement 1 January – 31 December 2020

Important clarifying information

Following the de-listing of the Oriflame group from the Nasdaq Stockholm stock exchange in July 2019, the group structure was changed. Three companies were founded up to the parent company Oriflame Holding Limited (renamed from Walnut Midco Ltd). Until, and including, Q2'19, the consolidated financial information covers the group before the de-listing with Oriflame Swiss Holding AG as parent company and excludes the three entities from the new group.

From Q3'19 onwards, the consolidated financial information is based on the group with Oriflame Holding Limited as parent company. Consequently, the scope of consolidation is different for the 12 months ended 31 December 2019 (income statement) covered in this interim management statement.

Three months ended 31 December 2020

'Adjusted' figures exclude non-recurring and purchase price allocation (PPA) related items. For additional information refer to the alternative performance measures on page 13 and to the condensed consolidated income statements on pages 16 and 17.

  • Local currency sales decreased by 3% and Euro sales decreased by 14% to €307.5m (€357.2m).
  • Adjusted EBITDA margin was 16.5% (14.6%) and adjusted EBITDA amounted to €50.8m (€52.0m).
  • Adjusted operating margin was 13.7% (12.2%), negatively impacted by 380 bps from currencies, and adjusted operating profit was €42.1m (€43.7m).
  • Adjusted net profit was €15.4m (€15.4m).
  • Adjusted cash flow from operating activities was €75.0m (€73.6m) and adjusted cash flow before financing activities was €69.7m (€66.2m).
  • Cash and cash equivalents at the end of the period amounted to €241.9m (€143.5m).
  • Total debt amounted to €786.1m (€841.0m), secured debt amounted to €748.0m (€773.2m) and the Net Secured Debt ratio was 2.8 (3.5).
  • Update on Covid-19 impact: Towards the middle of the second quarter the negative sales trend, due to Covid-19 restrictions in major markets, was reversed.

The situation improved during the third quarter, however worsened again in the fourth quarter, extending into 2021, with stricter measures implemented to combat the renewed spread of the virus.

Twelve months ended 31 December 2020

'Adjusted' figures exclude non-recurring and purchase price allocation (PPA) related items. For additional information refer to the alternative performance measures on page 13 and to the condensed consolidated income statements on pages 16 and 17.

  • Local currency sales decreased by 2% and Euro sales decreased by 8% to €1,156.9m (€1,258.3m).
  • Adjusted EBITDA margin was 15.4% (14.4%) and adjusted EBITDA amounted to €178.6m (€180.8m).
  • Adjusted operating margin was 12.3% (11.2%), negatively impacted by 240 bps from currencies, and adjusted operating profit was €141.9m (€141.4m).
  • Adjusted net profit was €31.4m (€66.3m).
  • Adjusted cash flow from operating activities was €160.8m (€112.5m) and adjusted cash flow before financing activities was €191.5m (€109.7m).
  • On 23rd February 2021, the Board of Directors decided to pay a dividend of €30.5m, given the Company's much improved financial and cash position at the end of the year.

Conference call for the financial community

The company will host a conference call on Wednesday, February 24 at 15:00 CET.

Participant access numbers:

Denmark: +45 787 232 50
Finland: +358 981 710 522
Sweden: +46 8 505 583 73
United Kingdom: +44 333 300 9260
United States: +1 833 823 0590

The conference call will also be audio web cast in 'listen-only' mode through Oriflame's website or through the following link https://oriflame-ir.creo.se/210224

Hosts: Magnus Brännström, CEO, and Gabriel Bennet, CFO.

For additional information, please contact:
Vanessa Wendle, +41 799 220 173

Founded in 1967, Oriflame is a beauty company selling direct in more than 60 countries. Its wide portfolio of Swedish, nature-inspired, innovative beauty products is marketed through approximately 3 million Registered Active Members and Independent Brand Partners, generating annual sales of around €1.3 billion. Respect for people and nature underlies Oriflame's operating principles and is reflected in its social and environmental policies. Oriflame supports numerous charities worldwide and is a Co-founder of the World Childhood Foundation. For more information about Oriflame, please visit www.oriflame.com.