Highly impacted by recent movements of the Rouble, Oriflame has announced plans to limit the impact of the Russian currency devaluation.
Representing around 30 per cent of the group’s total sales, Russia is Oriflame’s largest market. The Swedish cosmetics maker recently invested 150 million euros into new manufacturing facilities in Nogins. The Russian Rouble is consequently the currency with the largest impact on the group’s sales and operating margin.
In order to address the recent sharp devaluation of the rouble together with the increasing inflation in Russia, Oriflame will “substantially speed up the pace and level of price increases in Russia during next year as well as continue to seek further efficiency improvements.”
“With a large part of our sales generated in Russia, we are clearly impacted by the recent additional devaluation of the Rouble. We will continue to carry out our strategy and sequentially implement price increases at levels required to enable a healthy business development. Despite the macroeconomic difficulties, I’m pleased to see a continued positive local currency sales trend for the fourth quarter in line with earlier communication,” commented Oriflame’s CEO Magnus Brännström.