Oriflame Cosmetics SA, the Swedish beauty products retailer that generates about half its sales from the former Soviet Union, reported second-quarter earnings that topped analysts’ estimates as rising sales in Latin America partly offset falling revenue in Russia and Ukraine.
Earnings before interest, taxes, depreciation and amortization fell 23 percent to 32.8 million euros ($43.8 million), the Luxembourg-based company said in a statement today. The average of ten analyst estimates compiled by Bloomberg was for 29.6 million euros.
Oriflame shares have lost 28 percent this year as political unrest and weakening currencies in Russia and Ukraine hurt performance. Of the 17 analysts who cover the stock and share their rating with Bloomberg, nine advise clients to sell, while six have hold recommendations and two recommend clients to buy.
“Our key growth regions continue to deliver both from a sales and margin perspective while we have yet to turn around business performance in Europe and CIS -– where in main markets we still face tough geopolitical and economic conditions,” Chief Executive Officer Magnus Braennstroem said in the statement.
Sales dropped 14 percent to 310.4 million euros in the quarter, a decrease of 1 percent in local currencies. Sales in the CIS -- a regional organization of former Soviet republics -- dropped by 23 percent to 132.7 million euros, a decline of 7 percent in local currencies. The number of active consultants selling the company’s beauty products fell by 7 percent to 3.2 million.