Strategic progress
We are rapidly progressing on our transformation agenda – Real Products, Real Prices and Real People:
- The simplification of our opportunity offering is in progress with ongoing tests in markets showing positive initial results.
- A new pricing strategy has been developed to improve value for money perception, tests started from June in 4 markets.
- The portfolio optimisation has continued, ensuring a focused, profitable and easy to recommend product portfolio.
- The transition to a network of European manufacturing partners is progressing ahead of plan, to be completed by Q3 2026: 316 products awarded to new partners and 198 products already produced by Q2 2026.
- The shift to modern digital-first commercial planning is in progress with continued testing and preparations for further roll-out.
- A savings program has been launched to ensure a lean, fit-for-purpose and results focused organisation.
- In April, Orkun Gül joined as Chief Commercial Officer, heading the Commercial function including the new Global Sales Growth & Enablement team that will serve as the strategic backbone of Oriflame’s commercial system.
Financial highlights – Three months ended 30 June 2026
- Sales in Euro decreased by 13%, corresponding to a 13% decline in local currencies. With the exception of Latin America which delivered 6% sales growth, all regions reported lower sales during the quarter. Türkiye & Africa declined by 13%, Europe & CIS by 12% and Asia by 11%.
- Adjusted gross margin decreased by 480 bps year-over-year, with foreign exchange effects accounting for a positive impact of 20 bps. The decline in gross margin was primarily attributable to lower sales volumes, increased inventory provisions and liquidation of excess inventory to generate cash.
- Adjusted EBITDA was €-4.7m, primarily reflecting lower sales, while ongoing cost-control initiatives and reductions in selling and administrative expenses helped mitigate the impact on profitability.
- Additional non-recurring costs amounting to €9.0m (€2.3m) were recorded during the quarter and excluded from the adjusted EBITDA.
- The quarter ended with a cash balance of €25.7m compared to €32.6m at the start of the quarter.
- Adjusted cash flow before financing activities totalled €8.6m. The impact of negative EBITDA was more than compensated by strong working capital performance, particularly through a €15.1m improvement in inventories and a €7.2m contribution from receivables.
“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 2026.
Other
The full report is available on Oriflame’s investor website: https://corporate.oriflame.com/investors/financial-reports/.
Conference call for the financial community
The company will host a conference call on the second quarter results on Wednesday 22 July 2026 at 12.30 CEST.
The presentation by Anna Malmhake, CEO and President, and Jog Dhody, CFOO will be available on the website after the conference call.
Participant access numbers:
Sweden: +46 (0)8 5051 0031
United Kingdom: +44 (0) 203 059 5863
United States: +1 (1) 631 570 56 13
Denmark: +45 3 272 7526
The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website or through the following link https://creo-live.creomediamanager.com/e1dbd693-1386-468c-9f56-e441ced106b6
The full report has not been audited by the company’s auditors.
For further information, please contact:
Janice Wood, IR@oriflame.com
