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
§ 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
§ 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
§ 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.
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