Mixed results for Oriflame
2011 was a ‘challenging year’ says ceo
Swedish direct sales company Oriflame has reported a mixed set of results in its year-end report for 2011. It shows that local currency sales decreased by 1% while Euro sales decreased by 7% to €408.7m in the last three months of the year. However, as far as the year went overall, local currency sales did increase by 3%.
The average size of the sales force also decreased by 5% to 3.4m consultants and the closing sales force was down by 4%.
According to Oriflame’s ceo, Magnus Brännstrom: “2011 was a challenging year. The conditions in our core markets remained difficult and we had a set-back in recruitment in the end of the third quarter. Despite these circumstances we delivered sales growth in local currency as well as a strong improvement in the underlying profitability for the full year.
“We will continue to explore our geographical footprint, carry out our strategic initiatives and further strengthen our brand. For 2012 the focus is to reverse the sales trend and return to growth with improved operating margin.”