Euro sales in the fourth quarter decreased by 10% and local currency sales decreased by 12%. Costs of sales increased by 14% during this period. Adjusted EBITDA dipped 16.2% or €42.6 million during the quarter and was negatively impacted by lower sales and gross margins.
Online sales reigned supreme in the fourth quarter, making up 98% of all order volume placed. Of these orders, 36% were placed using the Oriflame app and 84% of all visits came from a mobile device. Skin care (25%) was the category leader for the company during the quarter with fragrance (23%) following closely behind.
In full-year 2021, sales were €1,016.5 million compared with €1,156.9 million in 2020. All markets experienced a decline in Euro sales: Latin America 4%, CIS 10%, Europe 5%, Turkey & Africa 25% and Asia 21%. Cost of sales was down by 11% in 2021 to €324.7 million in 2021, with increased inventory provisions making an impact on the company’s gross margin.
Adjusted EBITDA in 2021 increased by 6% to €188.9 million. This boost came as a result of lower selling and marketing expenses and lower administrative costs. Adjusted EBITDA margin was 18.6%. The company’s long-term debt at the end of 2021 amounted to €735.6 million, excluding capitalized front-end fees. Cash and cash equivalents were €118.9 million.