08.01.14
Sweden
www.oriflame.com
Sales: $1.9 billion
Key Personnel: Magnus Brännström, chief executive officer and president; Jesper Martinsson, executive vice president, global sales and markets, and deputy chief executive officer; Gabriel Bennet, chief financial officer.
Major Products: Skin care, color cosmetics, fragrance, personal and hair care, accessories and wellness products.
New Products: Ecollagen skin care (relaunch); Lash Panorama mascara; My Red and Sir Avebury fragrances.
Comments: When your biggest markets are Russia and the Ukraine, you’re in for some rough sledding these days. That’s the case at Oriflame, which reported first quarter 2014 sales fell 14% amid the geopolitical turmoil.
“With sharply devaluating currencies and challenges of exceptional nature in our two largest markets Russia and Ukraine, there is no doubt the company is facing very tough conditions,” said Brännström. “We need to return the momentum and improve profitability in CIS and Europe while we continue to see a very positive development in Latin America, Turkey, Africa and Asia.”
That turmoil is one reason why the company redesigned its operations into four regions for 2014: Latin America, Europe (including the Baltic countries), CIS (excluding the Baltic countries) and Turkey, Africa and Asia. According to Oriflame, the reorg better reflects common challenges, opportunities and developments. In 2013, Turkey, Africa and Asia accounted for 29% of sales.
Sales slipped 6% last year, led by a 12% decline in the CIS and Baltic region. Sales in the EMEA fell 5%, as strength in Africa and stabilization in Southern Europe weren’t enough to overcome weakness in Central Europe. Sales in Latin America, however, rose 15%, as Oriflame reported gains in all five markets. Sales in Asia, too, improved, rising more than 10% due to strong sales growth in Indonesia, India and Pakistan.
By category, color cosmetics accounted for 24% of sales, followed by skin care, 21%; personal and hair care, 20%; fragrances, 20%; accessories 10% and wellness, 5%.
In November, one of the company’s main warehouses for India, located in the vicinity of New Delhi, was destroyed by fire. There were no injuries, but service levels in the Indian market were affected during the fourth quarter of 2013 and the first quarter of 2014.
www.oriflame.com
Sales: $1.9 billion
Key Personnel: Magnus Brännström, chief executive officer and president; Jesper Martinsson, executive vice president, global sales and markets, and deputy chief executive officer; Gabriel Bennet, chief financial officer.
Major Products: Skin care, color cosmetics, fragrance, personal and hair care, accessories and wellness products.
New Products: Ecollagen skin care (relaunch); Lash Panorama mascara; My Red and Sir Avebury fragrances.
Comments: When your biggest markets are Russia and the Ukraine, you’re in for some rough sledding these days. That’s the case at Oriflame, which reported first quarter 2014 sales fell 14% amid the geopolitical turmoil.
“With sharply devaluating currencies and challenges of exceptional nature in our two largest markets Russia and Ukraine, there is no doubt the company is facing very tough conditions,” said Brännström. “We need to return the momentum and improve profitability in CIS and Europe while we continue to see a very positive development in Latin America, Turkey, Africa and Asia.”
That turmoil is one reason why the company redesigned its operations into four regions for 2014: Latin America, Europe (including the Baltic countries), CIS (excluding the Baltic countries) and Turkey, Africa and Asia. According to Oriflame, the reorg better reflects common challenges, opportunities and developments. In 2013, Turkey, Africa and Asia accounted for 29% of sales.
Sales slipped 6% last year, led by a 12% decline in the CIS and Baltic region. Sales in the EMEA fell 5%, as strength in Africa and stabilization in Southern Europe weren’t enough to overcome weakness in Central Europe. Sales in Latin America, however, rose 15%, as Oriflame reported gains in all five markets. Sales in Asia, too, improved, rising more than 10% due to strong sales growth in Indonesia, India and Pakistan.
By category, color cosmetics accounted for 24% of sales, followed by skin care, 21%; personal and hair care, 20%; fragrances, 20%; accessories 10% and wellness, 5%.
In November, one of the company’s main warehouses for India, located in the vicinity of New Delhi, was destroyed by fire. There were no injuries, but service levels in the Indian market were affected during the fourth quarter of 2013 and the first quarter of 2014.