Oriflame transforms strategy despite sales drop

Sophia Harris 08/04/2026

In a market that demands constant evolution, Oriflame is not just navigating change; it is actively redefining its entire landscape. Despite some recent headwinds in sales and profitability, the company is aggressively pursuing a pivotal transformation designed to solidify its future growth and operational excellence.

The journey toward this renewed structure has visible impacts on the balance sheet. During the second quarter, the company reported a 13% year-on-year decline in sales across euros and local currencies. While Latin America showed resilience, recording a healthy 6% increase, other key regions—including Europe & CIS, Türkiye, Africa, and Asia—experienced lower sales volume.

This financial softness reflected the short-term effects of implementing major strategic shifts. Adjusted EBITDA registered a loss of €4.7 million, a natural consequence as the company focused on simplifying its operations and managing inventory effectively. Furthermore, adjusted gross margin saw a decline, driven by necessary provisions and the smart liquidation of excess stock, demonstrating a commitment to leaner operations.

Yet, behind these numbers lies a robust strategic pivot. Oriflame is firmly committed to its overarching vision: delivering Real Products, Real Prices, and Real People. This transformation strategy is focused on simplifying the product portfolio, refining pricing strategies across various markets, and streamlining the overall operating model to enhance competitiveness.

Execution of this strategy is happening at pace. The company has successfully optimized its portfolio and launched targeted pricing tests in four key markets. Perhaps most significantly, Oriflame is accelerating its transition toward a more integrated manufacturing network by partnering with European suppliers. This move not only improves efficiency but also injects fresh dynamism into the supply chain.

The tangible results of this operational overhaul are impressive. The company has awarded 316 products to new suppliers, with 198 of those already entering production. This commitment to external partnerships showcases a deep dedication to quality and modernized production methods.

To drive this forward, Oriflame instituted a comprehensive cost-saving program. Leadership was reinforced by the appointment of Orkun Gül as the new Chief Commercial Officer, who will spearhead the newly formed Global Sales Growth & Enablement team, ensuring that future expansion is fueled by streamlined efficiency and powerful execution.

Crucially, despite focusing on optimization, the company managed its finances brilliantly. Strong working capital management resulted in positive adjusted cash flow before financing activities of €8.6 million, underscoring the underlying financial strength powering this ambitious transformation.