Oriflame Cosmetics Posts Rise In Q3 Profit

Oriflame Cosmetics S.A. ORFLY reported an increase in its net profit for the third quarter. The company's quarterly net profit surged to EUR11.8 million, versus a year-ago profit of EUR5.7 million. EBITDA declined 2.2% to 26.3 million euros ($33 million), versus analysts' expectations of 25 million euros. Its sales slipped to EUR274.5 million from EUR294.6 million, while local currency sales rose 1%. Operating profit rose to EUR19.7 million from EUR19.5 million. CEO Magnus Brännström said, “As mentioned in connection to the second quarter report, we began to see positive effects from the strategic initiatives carried out in the CIS. While the geopolitical situation remains uncertain these positive effects start to result in overall improved development. Currency movements continued to impact us negatively in the quarter, although with consistent price increases and implementation of cost saving initiatives, we managed to offset most of the impact. We have continued challenges ahead of us, especially related to exchange rates and macro-economic development in some of our main markets. At the same time, I am very pleased to see continued strong development in Latin America, Turkey, Africa & Asia. ” Oriflame shares fell 3.99% to close at $8.18 yesterday.