Oriflame - Q3 Report

Interim report 1 January - 30 September 2010

 Three months ended 30 September 2010
 §  Local currency sales increased by 10% and Euro sales increased by 21% to
€336.6m (€277.3m).
§  Average size of the sales force increased by 12% to 3.4m consultants and
closing sales force was up by 8%.
§  EBITDA before restructuring costs and impairment Iran amounted to €33.4m
(€27.2m).
§  The operating margin before restructuring costs and impairment Iran was 8.0%
(7.8%) resulting in an operating profit of €27.1m (€21.6m).
 §  Net profit before restructuring costs and impairment Iran amounted to €7.1m
(€13.4m).
§  EPS after dilution and before restructuring costs and impairment Iran
amounted to €0.12 (€0.24).
§  Cash flow from operating activities amounted to €-11.7m (-11.7m).
§  Operations in Iran were closed down in August and have not yet reopened. The
company is fully focused on resolving the present situation in Iran. An
impairment of all balance sheet positions of €11.4m has been carried out.

Nine months ended 30 September 2010
 §  Local currency sales increased by 7% and Euro sales increased by 15% to
€1,073.5m (€934.1m).
 §  Net profit before restructuring costs and impairment Iran amounted to €73.8m
(€60.2m).

 §  EPS after dilution and before restructuring costs and impairment Iran
amounted to €1.29 (€1.06).

 §  Cash flow from operating activities amounted to €31.7m (€30.8).

 §  New outlook: Sales growth for 2010 is expected to be around 9% in local
currency and operating margins are expected to be approximately 11% at current
exchange rates.



"During the third quarter, we have seen positive effects on sales force and
volume growth moving us closer to a stronger sales momentum quarter by quarter -
even though we are cautious and lower our sales outlook in a tougher market.
Recent negative currency development in combination with continued investment in
top line growth activities leads us to lower the outlook for operating margin
for the full year." CEO Magnus Brännström comments.



[HUG#1455169]





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Source: Oriflame Cosmetics via Thomson Reuters ONE