Oriflame announced its financial statement for the third quarter of 2025. The company recently concluded an agreement with its creditors and shareholders for a recapitalization of its capital structure and an extension of its revolving credit facility to June 2029, as well as a significant de-levering of its balance sheet. The company expects these terms to significantly strengthen its financial position and support its ongoing operational turnaround. This agreement builds on the $57 million investment secured from a consortium of long-term European investors, which was announced in March 2025.
The recapitalization transaction will now support Oriflame’s significant operational transformation, which the company states is “already delivering improvements to key performance metrics, driving a return to growth in sales and recruitment in over 20 markets.”
“The successful completion of this transaction marks an exciting new chapter for us all at Oriflame, one with a strong, de-levered balance sheet and continued support from investors,” said Anna Malmhake, Oriflame CEO. “This milestone positively positions the business for future success, allowing us to focus on driving forward our transformation plan, accelerating innovation and continuing to provide a market-leading service to our customers and stakeholders. I look forward to continuing our work as we solidify the business’s position and set it up for long-term growth and future success.”
During the third quarter of 2025, the company’s Euro sales declined 4% to $144 million with an adjusted EBITDA of $5.7 million. Adjusted net profit was reported as a loss of $23.3 million, with adjusted cash flow from operating activities at -$10.9 million. Year-to-date 2025 Euro sales fell 7% to $464.5 million, with an adjusted EBITDA of $0.46 million.
The company’s Beauty Community Model (BCM), implemented in 48 markets, represented more than 80% of sales and will be a high priority as the program is implemented in remaining markets, with expectations to finalize by the beginning of 2026.
“Although the company is facing uncertainties as to its ability to continue as a going concern due to the company’s challenging results during the past couple of years and liquidity, management believes that such uncertainties will be addressed by the recapitalization and by the measures taken to drive positive business performance,” the company wrote in a statement.
The company ended the quarter with a cash balance of $38 million, down from $57.3 million at the start of the quarter.
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