Oriflame breaches bamboo curtain for cosmetic profits

DOWN on the agricultural communes around the Yellow river mention eye liner and mascara to the Chinese peasantry and the ladies…

DOWN on the agricultural communes around the Yellow river mention eye liner and mascara to the Chinese peasantry and the ladies, who have neither need nor understanding of such embellishments, would think you were referring to two of the running dogs of capitalist imperialism. An understandable confusion. But in the increasingly prosperous cities it's a different matter, with a strong demand emerging for western style beauty aids. For cosmetic products manufacturer Oriflame, based on the Sandyford industrial estate, the Chinese market was this week described as an "important contributor" to its sixth successive year of profit growth.

The company, controlled by a Swedish family with a 40 per cent share holding, has built up a phenomenally successful global business from its main manufacturing base in Sandyford where it employs 280 people. Output from the Dublin plant increased 45 per cent last year and currently provides 75 per cent of group production. In the year ending last March, earnings were far from cosmetic and pre-tax profits surged 26 per cent to £20 million sterling on a 12 per cent increase in turnover to £91 million.

The company, whose shares are listed on the London stock market, has increased total dividends by lp to 15p a share.