S&P lowers Oriflame Investment

S&P said it lowered its ratings on Oriflame Investment Holding plc and its senior secured notes to CCC+ from B-. The recovery rating of 3 is unchanged, indicating recovery prospects of about 50%.

“The downgrade follows Oriflame's recent interim results which confirmed the ongoing pressure on the company's sales networks and its lessened ability to recover sales volumes and profitability after the pandemic, input cost inflation, and the war in Ukraine. During the first six months of the year, the company's reported sales declined by 12% to about €390 million (a 9% decline in local currency). This was driven by a volume decline of 26% year on year and partially offset by a positive price mix effect of about 17%,” S&P said in a press release.

The agency said it now forecasts Oriflame’s revenue to decline 9%-11% year on year.

The outlook is negative.

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