Strategic progress
We continue to advance initiatives to improve growth, operational efficiency and cash generation:
- Strengthened data-driven decision making through enhanced customer and sales performance analytics.
- Expanded digital and social commerce initiatives, while progressing AI-enabled tools to support marketing, recruitment and customer engagement.
- Advanced initiatives to improve recruitment, activation and retention through simplified onboarding, personalised experiences and data-driven customer interactions.
- Progressed the rollout of a new rewards and incentive framework to strengthen engagement and productivity.
- Advanced the transition to a digital-first commercial model while incorporating early market learnings to support successful adoption.
- Continued product portfolio optimisation and supply chain transformation, supported by AI-driven forecasting and logistics initiatives.
- Progressed the cost savings programme and delivered further improvements in inventory levels and cash generation.
- During the quarter, Oriflame completed the transfer of its manufacturing operations in India and entered into a long-term manufacturing and supply partnership with the buyer. The transaction generated cash proceeds of €5.0m and forms part of the Group’s ongoing efforts to optimise its global operational and sourcing footprint.
Financial highlights
- Sales in Euro decreased by 22.5%, while sales at constant exchange rates declined by 23.4%, reflecting a favourable foreign exchange impact of 0.8 bps. All regions reported lower sales versus the prior year, with declines of 26% in Türkiye & Africa, 22% in Asia, 19% in Europe & CIS and 5% in Latin America. The decline was significantly impacted by the termination of third-party sales from the Polish factory, which reduced sales by approximately 400bps. Excluding this impact, sales in Euro would have declined by approximately 18%.
- Adjusted gross margin increased by 60 bps year-on-year, including a positive foreign exchange impact of 30 bps. The improvement was primarily driven by favourable price/mix effects and the release of inventory provisions, partly offset by lower sales volumes and operating deleverage.
- Adjusted EBITDA was €-1.5m, primarily reflecting lower sales, partly offset by continued cost-control measures, including lower marketing investments during the quarter.
- Additional non-recurring costs amounting to €7.7m (€4.4m) were recorded during the quarter and excluded from the adjusted EBITDA.
- The quarter ended with a cash balance of €23.2m compared to €25.7m at the start of the quarter.
- Adjusted cash flow before financing activities was €3.7m, supported by strong working capital performance. Improvements in inventories of €8.3m and receivables of €5.3m more than compensated for the negative EBITDA generated during the period.
“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 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 third quarter results on Friday 23 October 2026 at 12.30 CEST. The presentation by Kenneth Benaim Campbell, CEO and President, and Jog Dhody, CFOO will be available on the website after the conference call.
The conference call will be audio web cast in “listen-only” mode through Oriflame’s website or through the following link Interim Management Statement 1 January – 30 September 2026 | Oriflame
The full report has not been audited by the company’s auditors.
For further information, please contact:
Janice Wood, IR@oriflame.com
