Top Companies Report

15. Oriflame

August 6, 2012


Sales: $2.0 billion

Key Personnel: Magnus Brännström, chief executive officer and president; Jesper Martinsson, chief operating officer; Gabriel Bennet, chief financial officer.

Major Products: Skin care, color cosmetics, fragrances, personal and hair care products, wellness and accessories.

New Products: Ecobeauty and Ecollagen 3D+ Deep Wrinkle skin care; Studio Artist color cosmetics, Jewel lipstick, Maxi Lash mascara; Architect, Delicacy, Eclat Weekend and Volare Magnolia fragrances.

Comments: Sales fell just over 1% last year. By region, CIS & Baltics accounted for 56% of sales, followed by Europe, Middle East and Asia (28%), Asia (10%) and Latin America (6%). Russia is far and away Oriflame’s largest single market, accounting for more than 25% of corporate sales.

Love Potion is a new scent from Oriflame.
By product category, sales were led by color cosmetics at 24% of sales, followed by personal care and hair care and skin care, each accounting for 21% of sales. Fragrance was next at 20%, followed by accessories (10%) and wellness (4%). Only personal care and hair care and accessories and wellness posted gains last year, at 3% and 10%, respectively.

Oriflame’s direct sales force now operates in more than 60 countries, having added Algeria last year. With the launch of Ecobeauty, Oriflame says it was the first company to introduce products certified by four independent environmental and fair trade organizations.

Last year, the company formed a partnership with the Women’s Tennis Association and tapped the world’s then No. 1 player, Caroline Wozniaki, as its global ambassador.

Also last year, the company redesigned its website, and attracted 20 million more visits than the previous year.

For the first quarter of 2012, sales rose 2% to $520 million. However, unit sales fell 5%, while the price/mix effect was 7%. During Q1, the sales force contracted 5% to 3.6 million consultants in Q1. CEO Magnus Brännström blamed the decline on a setback in recruitment that came during Q3 2011.

EcoBeauty has been certified by four environmental and fair trade organizations.
“Our efforts to return to growth and improve profitability have led to promising results on sales, productivity and margins—however, market dynamics remain challenging,” said Brännström. “It is also important to highlight the cash flow, further reducing the net debt. In addition to these achievements we will in the coming quarter focus on growth of the sales force and thereby lay a solid foundation for the future.”

By region, local currency sales increased by 16% in Asia, by 10% in Latin America and by 1% in CIS & Baltics while unchanged in EMEA. In April, Oriflame was selected as Brand of the Year in Russia.

blog comments powered by Disqus
  • A Facial Bar Grows in Brooklyn

    A Facial Bar Grows in Brooklyn

    Christine Esposito, Associate Editor||October 24, 2016
    With three doors in Canada, Blitz Facial Bar opens its first US location in one of the hippest areas of New York.

  • Coming Clean on a Host of Issues

    Coming Clean on a Host of Issues

    October 17, 2016
    Cleaning Products Conference is set for Nov. 9-11, 2016 in Washington DC.

  • Let the Magic Begin!

    Let the Magic Begin!

    Tom Branna, Editorial Director||October 10, 2016
    IFSCC Congress gets underway at Walt Disney World this month.

  • Change Is in the Air

    Change Is in the Air

    Doreen Wang, BrandZ ||October 3, 2016
    Technology is changing the personal care market

  • Skin Care of One’s Own

    Skin Care of One’s Own

    Christine Esposito, Associate Editor||October 3, 2016
    Nu Skin’s ageLOC Me—which melds the worlds of smart-phone technology, efficacious ingredients and personalization

  • Proof Positive

    Proof Positive

    Christine Esposito, Associate Editor||October 3, 2016
    Testing service providers enable companies to back up their claims and stay in compliance with regulations.

  • Back to School

    Back to School

    Tom Branna, Editorial Director||September 1, 2016
    It may be September, but class was in session this summer during the Private Label Manufacturers Association’s Executive Educ

  • What

    What's In Your Formula?

    Christine Esposito, Associate Editor||September 1, 2016
    A look at the ingredients beauty brands are using to fuel their formulations and capture consumers’ attention.

  • How Green Is Your Surfactant?

    How Green Is Your Surfactant?

    Tom Branna, Editorial Director ||September 1, 2016
    Suppliers offer a range of solutions to help household and personal care product formulators develop formulas

  • Special Effects

    Special Effects

    Melissa Meisel, Associate Editor||August 1, 2016
    Fall 2016 color cosmetics reflect light and offer a focus on elements like pigment, slip and wear.

  • Works of Art

    Works of Art

    Tom Branna, Editorial Director||August 1, 2016
    These suppliers know that the container can be just as important as the juice to entice luxury shoppers.

  • Sustainability is Omnipresent

    Sustainability is Omnipresent

    Christine Esposito , Associate Editor||July 1, 2016
    Industry stakeholders convene in New York City for Organic Monitor’s annual event

  • Perceived Perfection

    Perceived Perfection

    Christine Esposito, Associate Editor||July 1, 2016
    From primers to pressed powders, facial cosmetics help create the illusion of a flawless complexion.

  • Preserve & Serve

    Preserve & Serve

    Melissa Meisel , Associate Editor||July 1, 2016
    Suppliers with innovative preservatives provide staying power for formulations.

  • Quaternized Guar Is a Natural Solution

    Quaternized Guar Is a Natural Solution

    Tom Schoenberg, Schoenberg Consulting||July 1, 2016
    The polymer has applications in a range of skin and hair care formulas that does not build up on hair with repeated use

  • Take Notice

    Take Notice

    Melissa Meisel , Associate Editor||June 1, 2016
    Packaging trends revolve around trendy artwork, eco-conscious materials—and portability is a plus too!

  • Virtual Reality

    Virtual Reality

    Christine Esposito, Associate Editor||June 1, 2016
    An update on nature-identical ingredients for cosmetics and personal care products.

  • Shiseido Advances in the US

    Shiseido Advances in the US

    Tom Branna, Editorial Director||June 1, 2016
    New facility in Windsor, NJ demonstrates its dedication to the US and other markets outside Japan.

  • Get Smart About Your Big Data

    Get Smart About Your Big Data

    Christine Esposito, Associate Editor||June 1, 2016
    Experts at the IRI Growth Summit explain how to make personal connections with customers.

  • For the Love of Lipids

    For the Love of Lipids

    Tom Branna, Editorial Director||June 1, 2016
    AOCS and SCC to deliver a program geared to cosmetic chemists of the important role that fats and oils play in a healthy skin

  • April in Paris

    April in Paris

    Tom Branna, Editorial Director||June 1, 2016
    In-Cosmetics sets attendance record in its return to the City of Light.

  • Salon Selectives

    Salon Selectives

    Tom Branna, Editorial Director||June 1, 2016
    The inside story about what stylists think about the state of the industry and the state of your products and ingredients.

  • Bite Now

    Bite Now

    Christine Esposito, Associate Editor||May 2, 2016
    Is the time finally right for beauty-from-within to move into the mainstream?

  • Boxed Out?

    Boxed Out?

    Tom Branna, Editorial Director||May 2, 2016
    Salon sales outpace mass-market results in the highly competitive, highly fashionable and yes, highly-colorful hair color cat

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • Who Makes That?

    Who Makes That?

    Tom Branna, Editorial Director||April 1, 2016
    From concept and formulation to testing and filling, today’s contract manufacturers perform a range of services for marketers