Oriflame: profitability up 25% in H1

Swedish-based cosmetics producer Oriflame saw its profitability rate increase by 25% in the first half of the year against the same period in 2006, company data shows. During the same period, the turnover generated by Oriflame Romania soared by 8%. The company’s representatives did not specify the value of the financial results posted in the first six months. “Profitability was driven higher by the considerable reduction of shipment and warehousing expenditures, the increased usage of modern sales systems (Oriflame virtual store), the implementation of the new customs code and the favourable evolution of the exchange rate,” specified Gabriela Sasu, financial manager at Oriflame Romania. The company does not own any production units in Romania, with the products currently being imported. Oriflame Romania generated turnover worth 28.6m euros (100.76m RON) last year, 20% higher than the value reported for 2005. The company is the second-largest player operating on the cosmetics market through direct sales.