Oriflame's Capital Market Day in Moscow

08 Sep '05

4 min read

Direct cosmetic seller Oriflame Cosmetics is holding a Capital Market Day in Moscow. Presentations - covering the Group's strategy, regions and initiatives in marketing, catalogue development and supply - are available on www.oriflame.com.

Following a business review, new financial targets for the Group have been adopted:
- Sales growth of 5-10 percent per annum in local currency
- Operating margin of 15 percent within five years
- The company expects local currency sales growth of in excess of 15 percent in the third quarter 2005
- Earlier communicated outlook for full year 2005 with a negative effect of 2-3 percentage points on operating margins compared to 2004 stands

Business review completed
Following a review of the business model, plans and operations, the management team of Oriflame Cosmetics outlined its view on the market and the Group's strategy going forward.

CEO Magnus Brännström stated the first priority of the Group going onward will be to secure revenue growth through defending market share in more competitive markets and to grow market share in less developed direct sales markets. As a second priority, Oriflame Cosmetics resolve selectively open new markets following the next opening, China, planned for first half of 2006.

In line with the new financial targets, the Group will strive for margin improvements through strengthened brand and product positioning, maintained service levels, brand loyalty, the sharing of best practice throughout the Group and a continuous focus on effective sourcing of products.

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