LONDON, UNITED KINGDOM
oriflame.com
ORIFLAME SECURES SUBSTANTIAL DEBT REDUCTION AND STRATEGIC INVESTMENT TO FUND NEXT STAGE OF GROWTH
- Debt reduction of c.€520m delivers substantially de-levered and sustainable balance sheet
- Strategic investment of €50m from the af Jochnick family and consortium of long-term investors
- Shareholding structure of the group remains unchanged with af Jochnick family the main shareholder
- Transformation plan delivering tangible results with positive momentum in membership growth
London, United Kingdom – 18 March 2025 – Oriflame is pleased to announce a comprehensive recapitalisation with the support of the af Jochnick family and investors representing more than 80% of the Company’s bonds. The transaction delivers a substantially de-levered and sustainable balance sheet with a debt reduction of c.€520m and a meaningful maturity runway. A substantial injection of new capital of €50m from consortium of long-term investors and the af Jochnick family provides a stable platform to drive a return to strong and sustained growth. The af Jochnick family is fully supportive of the transaction and the current shareholding structure remains unchanged. The transformative transaction secures the long-term future of Oriflame, supporting the livelihood of its passionate and dedicated community members around the world.
The transaction is expected to close in the first half of 2025 subject to satisfaction of conditions precedent and approval from other creditors, including the RCF lenders.
Oriflame’s ongoing transformation is already delivering tangible results, with key operational metrics showing positive momentum. Year-to-date end February 2025, the number of Community Members increased year-over-year for the first time since early 2021, reflecting renewed engagement and confidence in the brand. As of the same period, the Company has recorded year-over-year sales and recruitment growth in more than 20 markets, supported by a significant reduction in churn, reinforcing Oriflame’s ability to drive sustainable expansion and long-term success. The company’s Beauty Community Model, which was successfully rolled out across 75% of markets by the end of 2024, will continue expanding into the remaining markets, further bolstering growth and strengthening Oriflame’s position as a leader in the industry.
Alexander af Jochnick, Chairman, Oriflame, said “Our family have been involved in Oriflame since Oriflame’s founding in 1967. Today’s announcement of our investment in partnership with a group of investors as well as the recapitalisation of the balance sheet provides Oriflame with a stable financial footing. This will allow for the management team to execute on the Company’s business plan to the benefit of all stakeholders of Oriflame. I am excited to work together with the investors and management to enable the success of our brand partners across the world!”
Anna Malmhake, CEO of Oriflame, said, “Since joining Oriflame, I have been inspired every day by the Company’s mission and our incredible global community of partners. Today’s announcement marks the beginning of a new chapter in which we can fully unlock this community’s potential. With a firm financial footing, we will invest in the future of our business, supporting entrepreneurs all over the world who share our passion for wellbeing and beauty.”
Tresidor Investment Management and Blantyre Capital said in a joint statement, “We are delighted to support Oriflame and its community of dedicated entrepreneurs with a major deleveraging of the Company’s balance sheet together with a strategic investment of additional capital to support growth. This investment will be instrumental in accelerating the implementation of the Company’s strategic plan which is already delivering performance improvements. We are firm believers in the strength of the Oriflame’s beauty community and the long-standing premium quality of its products and are excited to be a part of the Company’s future growth. We look forward to continuing to work collaboratively with Oriflame’s talented team and experienced shareholders to drive profitability and growth.“
Existing bondholders that have questions about the recapitalisation may reach out to Rothschild & Co at Project_Glow_RandCo@rothschildandco.com and Carnegie Investment Bank AB at carnegie.projectg@carnegie.se.
Conference call for the financial community
The company will host a conference call on the fourth quarter results and on the Recapitalisation update on Tuesday 18 March 2025 at 15.30 CET.
Participant access numbers:
Sweden: +46 (0)8 5051 0031
United Kingdom: +44 (0) 207 107 06 13
United States: +1 (1) 631 570 56 13
Denmark: +45 3 272 7526
Finland: +358 94 245 0051
The conference call will also be audio web cast in “listen-only” mode through Oriflame’s website: www.oriflame.com or through the following link https://creo-live.creomediamanager.com/34eafe08-b10c-483a-9a0d-01d9b4577844
Media Contacts for Oriflame
Alex Simmons, Edelman Smithfield
alex.simmons@edelmansmithfield.com / +44 7970 174353
About Oriflame
As a globally renowned beauty and wellness company, Oriflame has empowered individuals since 1967 through its diverse portfolio of high-quality, innovative, and sustainable beauty products inspired by nature and backed by science. It operates in over 60 markets.
Committed to ethical business practices and environmental sustainability, Oriflame takes pride in its Swedish heritage and people-centric approach. The Company operates through a social selling model, enabling over 1.5 million independent consultants worldwide to become beauty industry insiders through a ‘Plug and Play’ micro-entrepreneurship model.
Oriflame’s product range spans skincare, cosmetics, fragrances, personal care, and nutritional supplements, all crafted with care to promote holistic well-being. Guided by the values of togetherness, spirit, and passion, Oriflame continues to make a positive impact on communities worldwide.
For more information, visit www.oriflame.com or read the full presentation here.
