Swedish direct-seller Oriflame has announced it has scrapped its dividend payment for the remainder of the year, as a result of its net profits falling to €3.3m from €25m the year prior. Sales were also down to €353.7m from €371.2m a year ago
The company has cited geopolitical instability in Russia and Ukraine – two of its core markets – as a factor behind the situation Oriflame finds itself in. The company is said to be focusing on reducing debt.
"We ended the year with a quarter of decent local currency sales development, but with margins under pressure," Chief Executive Magnus Brännström said. "The slower local currency sales development in the first quarter-to-date reflects the continued external challenges and uncertainties we are likely to be faced with throughout 2015," Mr. Brannstrom said. "We will tackle these with a continued strive to improve our offer and an intense focus on profitability."