Oriflame, the Swedish direct sales brand, recently published its financial report for the third quarter of fiscal 2024. The company’s sales dropped by 19% year-over-year, reaching €130.8 million, while adjusted net profit stood at €6.9 million. Oriflame attributed these declines to the ongoing macroeconomic and geopolitical challenges, along with negative foreign exchange (FX) impacts across multiple markets.
For the nine months ending September 30, 2024, Euro-denominated sales decreased by 21% to €435.5 million, and local currency sales dropped by 17%. The company noted that the difficult environment continued to hinder performance during the quarter.
Despite these challenges, Oriflame is expanding its operations; a new subsidiary was incorporated in South Africa, with sales projected to begin in Q2 2025. Additionally, Oriflame’s Beauty Community Model (BCM), which emphasizes community-driven brand engagement, has been implemented in 36 markets, contributing to 60% of the Group’s quarterly sales and delivering promising results.
In August this year, Oriflame announced the appointment of Johan Larsson as Executive Vice President of Global Operations and President of Greater China. Since joining Oriflame in 2002, Johan has held multiple senior management roles, including General Manager for Egypt, Bulgaria, and Turkey; Regional Manager for Central and Eastern Europe and General Manager for Hungary; Director for Central Europe, Middle East, and Africa and General Manager for Poland; Vice President of Central Europe; and Senior Vice President and President for Turkey.
Additionally, Oriflame has recently faced issues with counterfeit products in the Chinese market and is taking measures to counter the widespread presence of fake goods. On October 18, Oriflame posted a message on its official WeChat account, warning consumers about counterfeit products being sold under the brand, which pose significant risks to consumer interests, health, and safety. The company urged consumers to remain vigilant.
