Oriflame - comment

Members fell even faster than we had projected and so did revenue. As most dissenting members are the novices (think churn is 80%), we now see revenue / member almost stabilising - in fact it has turned positive this Q2, but we think it will revert to a mild negative in Q3. 

For the rest of the year, the company is planing to liquidate some of its outsized WC to stem outflows and preserve its RCF as undrawn. The new management team could not yet offer insights into how it wishes to tackle the poor performance, nor when it would be successful in turning the business around. We are looking forward to hearing more in three months time.