2 Min Read
Feb 16 (Reuters) - Swedish cosmetics firm Oriflame said on Thursday it will pay an extra dividend for 2016 as it reported fourth-quarter earnings above expectations.
* Oriflame Q4 local currency sales +8 pct and euro sales +5 pct to 355.1 mln EUR vs last year 339.5 mln EUR and Reuters poll 350 mln EUR * Oriflame Q1 to date sales +11 pct in local currency * Says local currency Q4 sales in Russia - the company's biggest market - decreased by 9 pct, to a large extent driven by negative timing of catalogues * Chief Executive Magnus Brannstrom says to Reuters the company does not expect any timing impact in Q1 on group level, however a positive timing impact in Q2 * Brannstrom said: "We are comfortable with our development in Russia and that it is going in the right direction" * CEO says price pressure in Russia has stabilized, but that price pressure in the other CIS markets is high * Q4 operating profit 42.0 mln EUR vs Reuters poll 40.7 mln. Q4 EBITDA 49.0 mln EUR vs year-ago 39.7 mln EUR * Oriflame, which competes with U.S. Avon, proposes a total dividend of 1.50 euro per share for 2016. Oriflame says 1.00 euro per share is ordinary dividend and 0.50 euro extra dividend. Analysts had expected a dividend of 0.71 euro per share. * Says ordinary dividend to be paid quarterly of 0.25 euro respectively starting in Q2 2017. The extra dividend is to be paid during Q2 2017 * Says in report Q1 has started in a promising way and we will continue to deliver on our strategy * The Oriflame stock has risen 6.3 pct so far this year after it more than doubled in value last year. Source text for Eikon: Further company coverage: (Reporting by Rebecka Roos; Editing by Daniel Dickson)