Few weeks ago, we reviewed six of the leading public direct selling companies’ growth performances in two separate analyses. You can read them here and here if you have not already done so. This week we will take a short glance on their profitability aspects.
Sales growth is definitely a profit-generating engine. However, as you will see in the figures below, an increase in sales does not always mean an increase in profits. Also, a company with higher sales is not necessarily more profitable than a company with less sales.
For practical purposes, the numbers here are focused on operating profits only. This also makes more sense to me. Personally, I would be more interested in knowing a direct selling firm’s operational profitability than knowing the profitability in activities unrelated to its core business.
I will not comment on the charts below but will let the numbers speak for themselves this time.
Note:
If you wish to approximately convert;
Natura’s figures: 1 Brazilian Real = USD 0.30
Oriflame’s figures: 1 Euro = USD 1.05
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