Recapitalisation process
On 3 November 2025, the Group successfully concluded discussions with its creditors and shareholders, resulting in an agreement outlining the terms of the recapitalisation of the Group’s capital structure including the terms of an extension to the Group’s revolving credit facility (“RCF”) to June 2029 and significant de-levering of its balance sheet. The terms of this agreement, once implemented, are expected to significantly strengthen the Group’s financial position and provide the necessary resources to complete its ongoing operational turnaround.
Three months ended 30 September 2025
- Euro sales decreased by 4% to €126.0m (€8m) and local currency sales decreased by 0.3%.
- The adjusted EBITDA amounted to €5m (€5.4m) and the adjusted EBITDA margin was 0.4% (4.2%). The currency impact on the adjusted EBITDA was 150 bps negative.
- The adjusted operating profit was €-4.3m (€0.2m) and the adjusted operating margin was -3.4% (0.2%).
- The adjusted net profit was €-20.3m (€6.9m).
- The adjusted cash flow from operating activities was €-9.5m (€-10.9m) and the adjusted cash flow before financing activities was €-14.0m (€-13.0m).
- Additional non-recurring costs amounting to €4.4m (€1.5m) were recorded during the quarter and excluded from the adjusted EBITDA.
Nine months ended 30 September 2025
- Euro sales decreased by 7% to €404.6m (€435.5m) and local currency sales decreased by 5%.
- The adjusted EBITDA amounted to €0.4m (€18.1m) and the adjusted EBITDA margin was 0.1% (4.1%). The currency impact on the adjusted EBITDA was 100 bps negative.
- The adjusted operating profit was €-14.3m (€1.5m) and the adjusted operating margin was -3.5% (0.4%).
- The adjusted net profit was €1.2m (€-36.5m).
- The adjusted cash flow from operating activities was €-24.3m (€-9.8m) and the adjusted cash flow before financing activities was €-39.5m (€-21.7m).
- Non-recurring costs amounting to €24.5m (€2.6m) were recorded during the period and excluded from the adjusted EBITDA.
Strategic progress
- Sales declined by 4% in Euro year-over-year but remained stable in local currencies (-0.3%).
- Adjusted EBITDA reached €0.5m, primarily impacted by lower sales, adverse foreign exchange effects, investment in marketing activities and compensation to reinforce brand visibility and sales performance. Administrative expenses continued to decrease.
- The Beauty Community Model (BCM) was at the end of the quarter implemented in 48 markets – now including Türkiye launched on October 1st – representing more than 80% of the sales of the Group. High focus on implementation in the remaining few markets with plan to finalise by the beginning of 2026. The Member segment share remained stable representing 27% of the Global Active Community.
- Strong community activation and recruitment initiatives were implemented during the quarter, including the Global “Invite a Friend” Challenge driving high recruitment in most markets (+22% in September versus prior year).
- The transition to a network of European manufacturing partners is on track for completion within two years with multiple products already awarded and produced in the third quarter – laying the foundation for the next generation of beauty products and accelerating innovation.
- Continued focus on brand activation across all markets with “guerilla-bag-campaign” in Romania quickly picked up by social media, multiple city festivals, Beauty Insider Day in Stockholm for Global Influencers, as well as further capitalisation on both existing and new partnerships to further build awareness, e.g. Legia Ladies female football club in Poland and PR event with Truls Möregårdh, in connection to China Smash – World Table Tennis Championship.
- Multiple digital experience enhancements were implemented including introduction of Beauty Rewards (“gamification”) web version, integration of Community ordering and registration in the Oriflame App, as well as focus on implementation of AI Beauty Tools (e.g. Virtual Try-on and Foundation Finder).
- The quarter ended with a cash balance of €33.1m compared to €49.9m at the start of the quarter. No drawdown was performed during the quarter, with the balance remaining at €85.0m at quarter-end.
Financial highlights
- Sales in Euro decreased by 4%, while broadly stable in local currency (-0.3%). Türkiye and Africa recorded the strongest growth, with sales up 9% in Euro and 17% in local currency. Asia delivered a promising sales growth of 7% in local currency although this translated into a 2% decline in Euro. Europe & CIS and Latin America recorded a decrease in sales in both Euro and local currency.
- Adjusted gross margin decreased slightly by 10 bps year-over-year, with foreign exchange effects accounting for a negative impact of 100 bps. Excluding FX, a positive price/mix effect was offset by lower volumes.
- Adjusted EBITDA amounted to €0.5m, primarily impacted by lower sales, increased marketing expenses, compensation to the active community and higher distribution and infrastructure costs — driven by 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 €-14.0m for the quarter versus €-13.0m in the same quarter last year, where the reduction was mainly attributable to lower adjusted EBITDA, while the negative impact from working capital was less marked than in the prior year.
Significant events during and after the quarter
- On 3 November 2025, the Group successfully concluded discussions with its creditors and shareholders, resulting in the signing of a lock-up agreement outlining the final terms of the recapitalisation. This agreement represents a significant milestone in strengthening the Group’s financial position. Once implemented, the transaction will provide the necessary stability and flexibility to support the completion of its ongoing operational turnaround. The recapitalisation terms ensure that the Group is well positioned to execute its strategic initiatives and drive long-term sustainable growth. Additional details regarding the agreed terms for the recapitalisation agreement are available in a separate press release published on 4 November 2025 on the Oriflame investors website.
- 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 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 September 2025.
Other
The company will not be hosting a conference call this quarter. The report in full together with a presentation of the third quarter results are available on Oriflame’s investor website: https://corporate.oriflame.com/investors/financial-reports/
The full report has not been audited by the company’s auditors.
For further information, please contact:
Janice Wood, IR@oriflame.com
