|
While Oriflame continues to see healthy sales growth in all regions, this is being achieved at the expense of margin expansion, while risks to consumer spending in Turkey, the Baltics and parts of central Europe have increased. With lower expected sales growth and a flat margin, the shares appear fully valued and were therefore sold.
Oriflame is a Swedish company that sells natural cosmetics through a network of approximately two million sales consultants. Russia and the Baltics form the largest profit contributor, with a strong presence also in other parts of Europe. The company is expanding production in Russia, which should lower costs, and has just won a license to operate in China.
| Sedol |
Type |
Price |
Date |
|
B00G256 |
Sell |
SEK 385.635 |
15/08/2008 |
| B00G256 |
Buy |
SEK 267.971 |
27/10/2006 |
|
