Interim Management Statement 1 January – 30 June 2025

Three months ended 30 June 2025

Euro sales decreased by 10% to €132.9m (€148.2m) and local currency sales decreased by 7%.
The adjusted EBITDA amounted to €1.9m (€6.0m) and the adjusted EBITDA margin was 1.5% (4.0%). The currency impact on the adjusted EBITDA was 140 bps negative.
The adjusted operating profit was €-2.9m (€0.4m) and the adjusted operating margin was -2.2% (0.3%).
The adjusted net profit was €15.0m (€-19.2m).
The adjusted cash flow from operating activities was €-13.0m (€2.1m) and the adjusted cash flow before financing activities was €-17.6m (€-2.8m).
Additional non-recurring costs amounting to €2.3m (€0.4m) were recorded during the quarter and excluded from the adjusted EBITDA.

Six months ended 30 June 2025

Euro sales decreased by 9% to €278.5m (€304.7m) and local currency sales decreased by 7%.
The adjusted EBITDA amounted to €-0.1m (€12.6m) and the adjusted EBITDA margin was -0.0% (4.1%). The currency impact on the adjusted EBITDA was 80 bps negative.
The adjusted operating profit was €-10.1m (€1.3m) and the adjusted operating margin was -3.6% (0.4%).
The adjusted net profit was €21.5m (€-43.5m).
The adjusted cash flow from operating activities was €-14.8m (€1.1m) and the adjusted cash flow before financing activities was €-25.5m (€-8.7m).
Non-recurring costs amounting to €20.1m (€1.0m) were recorded during the period and excluded from the adjusted EBITDA.

Strategic progress

Sales declined by 10% in EUR year-over-year and by 7% in local currencies.
Adjusted EBITDA reached €1.9m, primarily impacted by lower sales and adverse foreign exchange effects. Administrative expenses continued to decline, reflecting the benefits of cost-reduction measures initiated in 2023 and carried forward.
The Beauty Community Model (BCM) was at the end of the quarter implemented in nearly 50 markets representing more than 80% of the sales of the Group and continues to show good results. High focus on implementation in the remaining few markets with plan to finalise by the beginning of 2026. The Member segment share represented 34% of the Active Community in the BCM markets (increased by 1 pp versus the previous quarter). This means that approximately 350,000 people in the Oriflame Active Community belong to this segment.
The launch of a new strategic initiative to transition European production from the Group’s current factory in Poland to a network of carefully selected, high-end European manufacturers is proceeding according to plan with good progress on product transfers.
Continued focus on marketing initiatives, including roll-out of the new brand activation campaign “Make Oriflame part of your beauty routine”, and activation initiatives such as Beauty Buses, as well as influencer/celebrity collaborations to build awareness and trust (Putri Marino in Indonesia, Jessica Mercedes in Poland and Truls Möregårdh in China).
Progressing digital experience improvements and simplification through high speed implementation of Beauty Rewards programme (“gamification”), ongoing upgrades of the Oriflame App enhancing social shopping experience and community engagement, as well as continued focus on further CRM optimisation.
Oriflame expanded its business officially launching in South Africa on May 2^nd in collaboration with famous musician Khuli Chana and three of his partner influencers as founding members.
The quarter ended with a cash balance of €49.9m compared to €56.2m at the start of the quarter. The Revolving Credit Facility (RCF) was drawn at €85.0m at the end of the quarter with a drawdown of €20.0m during the quarter.
The recapitalisation process is proceeding and we expect to finalise it during the third quarter.

Financial highlights

Sales in Euro decreased by 10% and by 7% in local currencies. With the exception of Türkiye and Africa — which reported sales growth of 0.2% in EUR and 12% in local currency, driven by strong performance in Nigeria — all other regions recorded a decline in sales in both EUR and local currency.
Adjusted gross margin decreased by 110 basis points year-over-year, with foreign exchange effects accounting for a negative impact of 100 basis points. Excluding FX, a positive price/mix effect was fully offset by higher costs from deliveries.
Adjusted EBITDA amounted to €-0.1m, primarily impacted by lower sales, reduced gross margins, increased marketing expenses and distribution & infrastructure costs — mainly due to transitional costs related to the new Group-managed distribution center. Administrative costs, however, continued to show a positive trend compared to the prior year.
Adjusted cash flow before financing activities was €-17.6m for the quarter versus €-2.8m in the same quarter last year, where the reduction mainly derived from the lower adjusted EBITDA and negative net change in working capital.

Significant events during and after the quarter

The recapitalisation process announced on 18 March 2025 continued to advance with the Revolving Credit Facility lenders. Although completion was initially anticipated in the second quarter, promising progress was made, and the process is now expected to be successfully finalised in the third quarter of 2025.
Although the Company is facing uncertainties as to its ability to continue as a going concern due to the Company’s challenging results during the past couple of years and current liquidity, management believes that such uncertainties will be addressed by the recapitalisation and by the measures taken to drive positive business performance. Refer to note 2 in the unaudited condensed consolidated financial statements for more information on going concern.

“Adjusted” figures exclude non-recurring and purchase price allocation (PPA) related items. For additional information refer to the condensed consolidated income statements in the full Interim Management Statement 1 January – 30 June 2025.

Other

The company will not be hosting a conference call this quarter. The report in full together with a presentation of the second quarter results are available on Oriflame’s investor website: https://corporate.oriflame.com/investors/financial-reports/