Oriflame - comment

Results this quarter were again behind our expectations. Management, sounding much improved this time, outlined its cost restructuring plan, which should come into effect over the coming nine months, before it’s probably time to discuss what to do with the balance sheet. The plan underwhelmed a little and seems only targeted at bringing the cost structure in line with the diminished revenue, although it did contain measures to improve new member recruitment. We will be analysing the performance in more detail to gain a better understanding on any underlying trends, but on the face of it, the business continues to disappoint - even with respect to our expectations.