Natura News

Natura Names Alessandro Carlucci CEO Effective October 1 as Ferreira Departs

Press Release | 8/31/2026

SAO PAULO, Brazil -- August 31, 2026

Natura said Alessandro Carlucci will become chief executive officer on October 1, 2026, succeeding Joao Paulo Ferreira, who will leave the company on September 30 after a decade in the role.

Carlucci had been chairman of the board and a director since 2025, and previously served as Natura CEO from 2005 to 2014 after a long executive career at the company. Fabio Barbosa will return as chairman of the board of directors.

Natura said that under Ferreira the company became multichannel, expanded in Hispanic markets and roughly tripled revenue, with more than 2.8 million beauty consultants and more than 1,200 stores. Carlucci said the focus will be on accelerating execution of the strategy already under way.

Natura Shareholders Approve Advent Board Seats and Tender Offer Waiver

Npros.com | 8/27/2026

SAO PAULO, Brazil -- August 27, 2026

Natura shareholders approved measures tied to Advent International's Lotus fund investment, including a waiver related to a mandatory tender offer trigger and an expansion of the board to elect two additional directors nominated in connection with Advent.

Advent's Juan Pablo Zucchini and Rafael Patury Carneiro Leao were elected after Lotus reached the minimum 8% stake contemplated in the binding commitment disclosed earlier in 2026. The meetings also addressed a new stock-option program and amendments reflecting a new shareholders agreement with the investor alongside the existing controlling group holding about 38.8%.

The Advent partnership had been outlined when Natura disclosed governance changes earlier in the year. The August 27 votes completed key conditions for Advent's board representation.

Natura Second Quarter Revenue Is 5.2 Billion Reais as Brazil Softens

Press Release | 8/10/2026

SAO PAULO, Brazil -- August 10, 2026

Natura reported second-quarter 2026 revenue of 5.2 billion Brazilian reais, saying Brazil was pressured by product unavailability, temporary tax mismatches and a subdued consumption environment, while Hispanic America grew 7.2% in constant currency.

Consolidated EBITDA was 620 million reais with a 12.0% margin, up 470 basis points sequentially, or 13.2% excluding the tax mismatch impact. Free cash flow to firm was a positive 342 million reais, and leverage stood at 2.06 times. In Hispanic markets, Natura brand sales grew 12.3% and Avon grew 4.7%, with regional EBITDA margin of 7.6%, up 220 basis points year over year.

CEO Joao Paulo Ferreira said operational challenges stemmed from digital and logistics investments and channel realignment that caused greater product shortages than expected. The company said it no longer expects expansion versus 2025 for the adjusted margin while maintaining outlook for free cash flow to firm to exceed the prior year.

Natura First Quarter Net Revenue Is 4.7 Billion Reais as Brazil Softens

Press Release | 5/11/2026

SAO PAULO, Brazil -- May 11, 2026

Natura reported first-quarter 2026 net revenue of 4.7 billion reais and EBITDA of 346 million reais, for a 7.3% margin, saying Brazil and Argentina weighed on results while other Hispanic markets performed better.

The company said Brazil faced a macroeconomic slowdown and lower consultant activity, though it gained market share on sell-out growth and a sequential rise in beauty consultants. Brazil digital sales rose 23.6% and retail revenue rose 14.3%. Excluding Argentina, other Hispanic markets were solid, and the Natura brand grew 7% in constant currency across the Hispanic region. Avon relaunches in Brazil and Mexico began in March.

Cash flow was a negative 315 million reais, which Natura said was broadly neutral excluding 330 million reais of extraordinary costs tied to its new operating model. CEO Joao Paulo Ferreira said the model is in place and the focus is sustainable revenue growth and higher profitability.

Natura Shareholders Approve New Board Slate and Advisory Board for Founders

Press Release | 4/29/2026

SAO PAULO, Brazil -- April 29, 2026

Natura Cosmeticos shareholders approved a reconfigured board of directors and the creation of a statutory Advisory Board at the company's ordinary and extraordinary general meeting, completing the governance changes outlined when the founders said they would leave the board.

The approved board slate includes Alessandro Giuseppe Carlucci, Flavia Buarque de Almeida, Gabriela Chaves Schwery Comazzetto, Guilherme Ruggiero Passos, CEO Joao Paulo Brotto Ferreira Goncalves, Luiz Francisco Guerra, Maria Eduarda Mascarenhas Kertesz and Pedro Cruz Villares. Shareholders also approved the independence status of Carlucci and other independent nominees and elected an Advisory Board slate of founders Antonio Luiz da Cunha Seabra, Guilherme Peirao Leal and Pedro Luiz Barreiros Passos, along with Fabio Colletti Barbosa.

The Advisory Board was approved as a body without executive functions or power to represent the company, intended to preserve Natura's purpose, values and culture. The March announcement of the founders' board exit had also disclosed Advent International's binding plan to buy an 8% to 10% stake.

Natura Founders Leave Board as Advent Plans 8 to 10 Percent Stake

Press Release | 3/30/2026

SAO PAULO, Brazil -- March 30, 2026

Natura announced a reconfiguration of its board of directors under which co-founders Luiz Seabra, Guilherme Leal and Pedro Passos, who signed a new 10-year shareholders' agreement, will leave the board and join a new advisory board with no decision-making role. Chairman Fabio Barbosa will also step down and join the advisory board, and Alessandro Carlucci was nominated to become chairman.

The proposed board adds five new members, Pedro Villares, Guilherme Passos, Luiz Guerra, Flavia Almeida and Gabriela Comazzetto, while director Duda Kertesz and Chief Executive Joao Paulo Ferreira remain. Bruno Rocha and Gilberto Mifano will leave the board, with Mifano continuing to chair the audit and finance committee. Shareholders will vote on the changes at a meeting on April 29.

Natura also said a fund managed by private equity firm Advent International has committed to acquire an 8 percent to 10 percent stake in the company within up to six months, at a target average price of 9.75 reais per share, with the right to nominate two board members.

Natura Reports Fourth Straight Year of Margin Gains After Completing Corporate Streamlining

Press Release | 3/16/2026

SAO PAULO, Brazil -- March 16, 2026

Natura reported fourth-quarter 2025 net revenue of 6.2 billion reais, down 12.1 percent from a year earlier and 3.4 percent in constant currency. The recurring EBITDA margin rose 700 basis points to 15.8 percent, with Latin America at 16.1 percent, and the full-year recurring margin improved 130 basis points to 14.6 percent.

Fourth-quarter net income from continuing operations was 186 million reais, or 620 million reais excluding a 434 million reais provision on a receivable related to The Body Shop. For the full year, net income from continuing operations was 463 million reais, or 974 million reais excluding the provision. Leverage ended at 1.31 times excluding The Body Shop. Digital revenue in Brazil rose 24.5 percent, and the recurring margin in the Hispanic Latin American markets improved 810 basis points to 7.5 percent.

The company said it began relaunching the Avon brand in Brazil and Mexico in March, following its sale of Avon International to Regent and of Avon Russia. "We have delivered on our commitment to expanding annual profitability, marking the fourth consecutive year of margin improvement," said Chief Executive Joao Paulo Ferreira.

Natura Third Quarter Revenue Falls 3.8 Percent as Brazil Slows; Avon International Write-Off Recorded

Press Release | 11/10/2025

SAO PAULO, Brazil -- November 10, 2025

Natura reported third-quarter consolidated net revenue of 5.194 billion reais, down 3.8 percent from a year earlier in constant currency, reflecting a slowdown in the Brazilian beauty market and temporary operational effects from the integration of Avon in Argentina and Mexico. Brazil, Argentina and Mexico together represent about 85 percent of the business, and lower expense dilution cut the recurring EBITDA margin in Latin America to 11.7 percent, down 360 basis points.

The company said it completed the integration of Natura and Avon across Latin America during the quarter, completed the sale of Avon operations in Central America and the Dominican Republic, and agreed to sell Avon International, excluding Russia, with closing expected in the first quarter of 2026. It continues to evaluate strategic alternatives for the Russian operation. The agreed Avon International sale led to a non-recurring, non-cash write-off of about 1.7 billion reais on the balance sheet, with no impact on operations.

"We are confident that profitability will improve in the next quarter and remain committed to expanding our EBITDA margin for the full year 2025," said Chief Executive Joao Paulo Ferreira, adding that Mexico stabilized toward the end of the quarter and Argentina is showing signs of recovery. Natura opened 89 new stores in Brazil and 32 in Hispanic America in the period, and its Emana Pay fintech reached 36 percent of the consultant base.

Natura Earns 445 Million Reais in Latin America in Second Quarter; Classifies Avon International as Held for Sale

Press Release | 8/12/2025

SAO PAULO, Brazil -- August 12, 2025

Natura reported second-quarter 2025 net income from continuing operations of 445 million reais in Latin America. Including Avon's operations outside Latin America, which are now classified as assets held for sale, net income was 195 million reais. Net revenue was 5.7 billion reais, down 1.7 percent in reais but up 5.5 percent in constant currency, or 2.0 percent excluding Argentina.

The Natura brand grew 10.3 percent in Brazil and 17.8 percent in Spanish-speaking markets, while the Avon brand fell 12.9 percent in Brazil. Results were also affected by the integration of the Natura and Avon brands in the region, known as Wave 2, which was completed in Mexico in May and rolled out in Argentina in July and is expected to be finished by year-end. The recurring EBITDA margin in Latin America was 14.7 percent, up 10 basis points, and Latin American operations generated 408 million reais of cash in the first half.

Natura said Avon International and Avon's business in Central America and the Dominican Republic were reclassified as held for sale because of the high probability that they will be sold within 12 months, as it continues to explore a spin-off or sale of Avon outside Latin America. Chief Executive Joao Paulo Ferreira said the company remains confident in delivering annual profitability growth despite slowing consumption.

Natura Sets July 1 Closing for Holding Merger; Natura Cosmeticos Shares to Trade From July 2

Press Release | 6/23/2025

SAO PAULO, June 23, 2025 --

Natura &Co Holding and Natura Cosmeticos said their boards confirmed that the conditions precedent for the merger of the holding company into Natura Cosmeticos have been met, after Natura Cosmeticos was approved as a Category A issuer and admitted to the Novo Mercado listing segment of the Brazilian stock exchange. The merger will close on July 1, 2025.

Shareholders will receive one Natura Cosmeticos share, trading under the ticker NATU3, for each Natura &Co share, ticker NTCO3. Trading in NATU3 shares is scheduled to begin on July 2, 2025.

Natura &Co ended its share buyback program early and cancelled 16,497,498 treasury shares, leaving 1,374,117,657 shares outstanding. Natura Cosmeticos approved a new repurchase program of up to about 34.17 million shares over 12 months starting July 2.

Natura First Quarter Revenue Jumps 45.8 Percent With Avon Reconsolidation; Net Loss Narrows to 151 Million Reais

Press Release | 5/13/2025

Natura &Co reported first-quarter 2025 consolidated net revenue of 6.7 billion reais, up 45.8 percent from a year earlier, including 1.4 billion reais from Avon International, which was reconsolidated after the company reacquired it in the Avon Products Inc. Chapter 11 case. Latin American revenue rose 12.2 percent in constant currency, or 4.1 percent excluding Argentina.

Recurring EBITDA was 790 million reais with an 11.8 percent margin, down 140 basis points, while the Latin American margin was 15.0 percent. The company posted a net loss of 151 million reais, compared with a loss of 935 million reais a year earlier, and underlying net income of 264 million reais. Net debt was 2.9 billion reais after cash consumption of 692 million reais in the seasonally weak quarter.

Avon International revenue fell 12.7 percent in constant currency. Natura said it is accelerating the unit's restructuring, cutting about 1,100 jobs, or roughly 25 percent of its staff, with the peak impact expected in the second and third quarters, while it continues to evaluate a potential separation or sale of the business. Chief Executive Joao Paulo Ferreira and Chief Financial Officer Silvia Vilas Boas presented the results.

Natura Shareholders Approve Merger of Natura &Co Holding Into Natura Cosmeticos

Press Release | 4/25/2025

SAO PAULO, April 25, 2025 --

Natura &Co Holding said shareholders of both the holding company and its subsidiary Natura Cosmeticos approved the merger of the holding company into Natura Cosmeticos at their respective shareholder meetings.

The corporate reorganization, first disclosed in material facts dated March 20 and March 25, 2025, is intended to simplify the group's structure by eliminating the holding company layer, leaving Natura Cosmeticos as the listed parent.

The company said the transaction will close on a date to be set by the boards of directors once all conditions precedent have been satisfied.

Natura Fourth Quarter Revenue Rises 16 Percent in Constant Currency; Posts 439 Million Real Loss on Avon Costs

Press Release | 3/13/2025

Natura &Co reported fourth-quarter 2024 consolidated net revenue of 7.7 billion reais, up 16.1 percent in constant currency and 63.1 percent in reais, driven by the Natura brand, which grew 21.1 percent in Brazil. Avon International was reconsolidated from December 2024 after the company reacquired it in the Avon Products Inc. Chapter 11 process.

Recurring EBITDA was 703 million reais with a 9.1 percent margin, down 70 basis points, as the company booked IT system investments as operating expenses and stepped up marketing. The company posted a net loss of 439 million reais, compared with a loss of 2.7 billion reais a year earlier, as 843 million reais of non-operational charges, mostly tied to its support of Avon Products' U.S. Chapter 11 case and Latin American integration costs, offset operating gains. Net debt fell to 2.4 billion reais.

Group Chief Executive Fabio Barbosa said Avon International continued to perform poorly and that the company is studying strategic alternatives for a possible separation or sale of the business while accelerating its restructuring. He also warned that Brazilian economic uncertainty and a possible beauty-market slowdown could pressure sales.

Natura Reaches Global Settlement With Avon Creditors Committee in Chapter 11 Case

SEC Filing | 11/27/2024

SAO PAULO, November 27, 2024 --

Natura &Co said it reached an agreement in principle on a global settlement with the Official Committee of Unsecured Creditors of Avon Products Inc. and affiliated debtors in Avon's U.S. Chapter 11 proceedings.

Under the proposed deal, subject to final documentation and bankruptcy-court approval, Natura would pay the Avon estates 34 million dollars in cash and fund the full 43 million dollars of prepetition debtor-in-possession financing. Natura also agreed to waive all of its secured and unsecured claims against the Avon debtors.

The settlement is intended to clear the path for Natura's previously announced 125 million dollar credit bid for Avon's non-U.S. operations after the creditors committee had objected to the original settlement and sale structure.

Natura Third Quarter Revenue Rises 18.5 Percent; Books 7 Billion Real Avon Deconsolidation Loss

Press Release | 11/7/2024

SAO PAULO, November 7, 2024 --

Natura &Co reported third-quarter 2024 total revenue of 6.0 billion reais, up 18.5 percent in constant currency and 17.4 percent in Brazilian reais, led by Natura Brazil and a rebound at Avon cosmetics, fragrance and toiletries. Recurring EBITDA rose 52 percent to 870 million reais, with the margin expanding 340 basis points to 14.6 percent.

Following Avon Products Inc.'s Chapter 11 filing, Natura deconsolidated API and its subsidiaries and recognized a non-recurring, non-operating, non-cash loss of about 7.0 billion reais from writing off its investments in API and impairing related receivables. Chief Executive Fabio Barbosa said Wave 2 integration of Natura and Avon in Latin America is progressing and is expected to finish by the end of 2025, with Mexico and Argentina still ahead.

Natura Cosmeticos issued a 1.3 billion real sustainability-linked debenture in July maturing in 2029. The group ended the quarter with a net debt to recurring EBITDA ratio of 1.5 times and 3.5 billion reais in cash.

Natura &Co Second Quarter Revenue Rises 5.4 Percent but Net Loss Widens on Avon Write-Off

Press Release | 8/13/2024

SÃO PAULO, Aug. 13, 2024 --

Natura &Co reported second-quarter 2024 consolidated net revenue of 7.35 billion reais, up 5.4 percent from a year earlier, or 5.7 percent in constant currency. Natura &Co Latam revenue rose 10.0 percent in constant currency, led by 14.8 percent growth for the Natura brand in Brazil and a near-flat result for Avon in Brazil, while Avon International revenue fell 8.4 percent.

Adjusted EBITDA rose 14.2 percent to 803.5 million reais, with the margin up 80 basis points to 10.9 percent. The net loss widened to 858.9 million reais from 731.9 million reais, mainly because of a one-time non-cash write-off of 725 million reais in deferred tax assets triggered by the Chapter 11 filing of U.S. holding company Avon Products, Inc. Excluding non-operating effects, underlying net income was 162 million reais.

Net debt excluding leases rose to 2.1 billion reais after a dividend payment of about 1.0 billion reais and seasonal cash use. Group CEO Fabio Barbosa called the Avon Products restructuring another step in the company's simplification and said Natura &Co will support it with financing and a bid for Avon's non-U.S. operations.

Natura &Co CEO Fabio Barbosa Joins Board as Two Directors Resign

SEC Filing | 7/2/2024

Natura &Co Holding S.A. said directors Andrew George McMaster and Georgia Melenikiotou resigned from its board on July 1, 2024, effective July 2. The board then appointed Chief Executive Fabio Colletti Barbosa as a director, so he now serves as both CEO and board member until the next shareholders' meeting.

The company said the changes are part of the effort it began in 2022 to simplify its structure and governance. That effort has included cutting the number of board seats, delisting from the New York Stock Exchange, giving business units more autonomy and selling Aesop and The Body Shop.

At the same meeting, the board created a Products and Brands Committee and reshuffled its other committees. It said it was still evaluating a replacement for McMaster on the Audit, Risk Management and Finance Committee.

Natura First Quarter Revenue Edges Up in Constant Currency as Latam Integration Lifts Margins

Press Release | 5/14/2024

SÃO PAULO, May 14, 2024 --

Natura &Co reported first-quarter 2024 consolidated net revenue of 6.1 billion reais, up 1.1 percent in constant currency and down 5.7 percent in Brazilian reais, as Latin American brand integration offset weakness at Avon International.

Adjusted EBITDA reached 683 million reais with margin expanding 110 basis points year over year. Natura Brazil revenue rose 11.3 percent, while Avon Latam remained soft and Avon International revenue fell 4.7 percent in constant currency. Underlying net income was 116 million reais versus an underlying loss a year earlier.

Group Chief Executive Fabio Barbosa said Wave 2 integration of Natura and Avon in Latin America continued to drive productivity and gross-margin gains. He said management was still studying a possible separation of Avon and Natura announced in February and would update the market when the assessment concludes.

Natura &Co Turns to 3.0 Billion Real Net Income for 2023 After Aesop Sale and Margin Gains

Press Release | 3/12/2024

SÃO PAULO, March 12, 2024 --

Natura &Co reported 2023 consolidated net revenue of 26.7 billion Brazilian reais, up 3.5 percent in constant currency and down 8.5 percent in reais. Adjusted EBITDA reached 2.7 billion reais, with the margin up 310 basis points, and net income was 3.0 billion reais, reversing a 2.8 billion reais net loss in 2022 after the sale of Aesop.

Gross margin expanded 410 basis points to 63.8 percent. The company ended the year with net cash of 1.7 billion reais after using Aesop proceeds to repay roughly 60 percent of debt, and said it would distribute 979 million reais in dividends. Group Chief Executive Fabio Barbosa said Wave 2 integration of Natura and Avon in Latin America was underway and that margins and cash remained near-term priorities.

Natura &Co also noted subsequent events including its January plan to end the NYSE ADR listing and its February study of a possible separation of Natura &Co Latam and Avon. Avon International remained weaker on consultant declines and portfolio optimization, though expense structure improved.

Natura &Co Board Authorizes Study of Separating Latam Business and Avon Into Two Listed Companies

Press Release | 2/5/2024

SÃO PAULO, February 5, 2024 --

Natura &Co said its Board of Directors authorized management to assess a possible separation of Natura &Co Latam and Avon into two independent, publicly traded beauty companies, each with its own business plan, governance and management team.

Under the concept, Natura would own and operate the Natura brand worldwide and keep the right to operate Avon in Latin America, while Avon would own the Avon brand and run a geographically diversified business outside Latin America, benefiting from a commercial arrangement with Natura on Latin American sales. The company said the study follows divestments of Aesop and The Body Shop and aims to unlock value by giving each business greater autonomy.

Natura &Co cautioned that no separation is assured and that any transaction would require final board approval and consent from a majority of shareholders, among other conditions. Management said it would continue Avon's turnaround and the Latin American brand integration while the assessment proceeds.

Natura &Co Plans to End Secondary NYSE Listing of American Depositary Shares

Press Release | 1/18/2024

SÃO PAULO, January 18, 2024 --

Natura &Co said its board approved a plan to end the company's secondary listing of American Depositary Shares on the New York Stock Exchange while keeping its primary listing of common shares on Brazil's B3 exchange in São Paulo.

Chief Executive Fabio Barbosa said the move fits the group's long-term strategy of simplifying operations. Natura &Co said the vast majority of trading activity is concentrated on B3 and that declining NYSE volume no longer made the secondary listing compelling. The company expected the NYSE to suspend trading in the ADSs on or about February 9, 2024, ten days after filing a Form 25 with the U.S. Securities and Exchange Commission.

Natura &Co said it had not arranged for listing or quotation of the ADRs on another U.S. exchange and would maintain disclosure standards through its Brazil listing. The group unites the Natura and Avon brands.

Natura &Co Completes Sale of The Body Shop to Aurelius

SEC Filing | 12/29/2023

Natura &Co Holding and Natura Cosméticos said in a material fact filed with the SEC on December 29, 2023 that Natura concluded the sale of its stake in The Body Shop to international private equity group Aurelius.

The agreement, announced November 14, valued The Body Shop at an enterprise value of 207 million pounds, including a 90 million pound earn-out, with payments due over up to five years after closing.

The company said the sale strengthens its effort to streamline operations and simplify its businesses and sharpens its focus on strategic priorities, notably integrating Natura and Avon in Latin America, its direct selling model and further optimizing Avon International's footprint. With the earlier sale of Aesop, Natura &Co is now concentrated on its Natura and Avon brands.

Natura &Co Third Quarter Revenue Slips 0.7 Percent in Constant Currency; Aesop Gain Lifts Net Income

Press Release | 11/14/2023

SÃO PAULO, November 14, 2023 --

Natura &Co Holding reported third-quarter 2023 consolidated net revenue of 7.5 billion reais, down 0.7 percent at constant currency and 10.5 percent in reais. Gross margin rose 310 basis points to 65.3 percent and adjusted EBITDA margin rose 190 basis points to 10 percent. Reported net income jumped to 7 billion reais from a loss of 560 million reais, driven by the capital gain on the sale of Aesop; underlying net income was 745 million reais.

Natura &Co Latam sales rose 2.5 percent in constant currency, led by 18.6 percent growth at the Natura brand, while the Avon brand's beauty sales fell 11.6 percent and its Home and Style line dropped sharply amid portfolio cuts and the Wave 2 integration of Natura and Avon in Brazil. Avon International revenue fell 2.3 percent in constant currency with adjusted EBITDA margin up 440 basis points to 8 percent, and The Body Shop's revenue fell 13.2 percent.

Using Aesop proceeds, the group prepaid more than half of its debt and accrued interest, about 1.6 billion dollars, ending the quarter with 6.8 billion reais in cash and a net cash position. Group Chief Executive Fabio Barbosa said the company would keep the market informed on The Body Shop sale process.

Natura &Co Agrees to Sell The Body Shop to Aurelius for 207 Million Pounds

Press Release | 11/14/2023

SÃO PAULO, November 14, 2023 --

Natura &Co agreed to sell The Body Shop to international private equity group Aurelius for an enterprise value of 207 million pounds, including an earn-out of 90 million pounds, with the price and earn-out payable over up to five years after closing. The deal, which followed an exclusivity agreement with Aurelius announced October 30, was expected to close by December 31, 2023, subject to customary regulatory approvals.

Natura &Co said the sale would let it refocus on accelerating the integration of the Natura and Avon brands in Latin America, its core relationship-selling model and further optimization of Avon International's footprint. Group Chief Executive Fabio Barbosa said the group would emerge refocused, deleveraged and leaner.

Natura &Co acquired The Body Shop in 2017 and the retailer now operates in more than 80 countries. The sale follows the August 2023 sale of Aesop to L'Oréal and leaves Natura &Co centered on the Natura and Avon direct selling brands.

Natura &Co Completes Aesop Sale to L'Oréal for 2.58 Billion Dollars

Press Release | 8/30/2023

SÃO PAULO, Aug. 30, 2023 --

Natura &Co Holding said it completed the sale of Aesop to L'Oréal for a final enterprise value of 2.58 billion dollars after obtaining all customary regulatory approvals. The transaction was initially announced April 3, 2023.

Group chief executive Fabio Barbosa said Aesop expanded globally under Natura &Co stewardship and that the proceeds would strengthen the balance sheet and support strategic priorities, including accelerating Natura and Avon brand integration in Latin America, further optimizing Avon International's footprint, and continuing to strengthen The Body Shop. L'Oréal chief executive Nicolas Hieronimus said Aesop would join L'Oréal Luxe.

Natura &Co is a Brazil-based multi-brand cosmetics group that includes Avon, Natura and The Body Shop; the Npros directory lists the group as Natura.

Natura &Co Second Quarter Revenue Rises 1.9 Percent in Constant Currency; Net Loss Narrows

Press Release | 8/14/2023

SÃO PAULO, Aug. 14, 2023 --

Natura &Co Holding reported second-quarter 2023 consolidated net revenue of 7.8 billion reais, up 1.9 percent at constant currency but down 4.1 percent in reais. Gross margin rose 430 basis points to 65.4 percent and adjusted EBITDA margin rose 230 basis points to 9.7 percent. Net loss was 732 million reais, slightly improved from 767 million reais a year earlier. Cash ended the quarter at about 3.7 billion reais.

Natura &Co Latam net sales rose 5.8 percent in constant currency, led by 19.5 percent growth at the Natura brand, while Avon International revenue fell 1.3 percent in constant currency. The Body Shop revenue fell 12.5 percent in constant currency. Aesop remained classified as discontinued operations pending the L'Oréal sale. Group chief executive Fabio Barbosa said Wave 2 of Natura-Avon Latin America integration began in Peru and Colombia and that Aesop closing was expected in the third quarter.

Natura &Co is a Brazil-based multi-brand cosmetics group that includes Avon, Natura and The Body Shop; the Npros directory lists the group as Natura.

Natura &Co First Quarter Revenue Rises 3.4 Percent in Constant Currency; Net Loss Narrows Sequentially

Press Release | 5/9/2023

SÃO PAULO, May 9, 2023 --

Natura &Co Holding reported first-quarter 2023 consolidated net revenue of 8.0 billion reais, up 3.4 percent at constant currency but down 2.8 percent in reais. Gross margin rose 370 basis points to 67.7 percent and adjusted EBITDA margin rose 330 basis points to 10.5 percent. Net loss was 652.4 million reais, broadly in line with the year-earlier loss and improved sequentially. Cash ended the quarter at about 4 billion reais.

Natura &Co Latam net sales rose 9 percent in constant currency, led by 25.1 percent growth at the Natura brand, while the Avon brand in the region fell 9.8 percent in constant currency. Avon International revenue fell 7.5 percent in constant currency. Aesop rose 16.8 percent in constant currency and was classified as discontinued operations after the April agreement to sell it to L'Oréal. The Body Shop revenue fell 9.4 percent in constant currency as David Boynton stepped down and Ian Bickley became interim chief executive.

Group chief executive Fabio Barbosa said results were in line with plan, with margin expansion from pricing and mix while the company simplifies its structure and improves its capital structure.

Natura &Co Agrees to Sell Aesop to L'Oréal for 2.525 Billion Dollars

Press Release | 4/3/2023

SÃO PAULO, April 3, 2023 --

Natura &Co Holding said it agreed to sell luxury beauty brand Aesop to L'Oréal for an enterprise value of 2.525 billion dollars. The deal remained subject to customary regulatory approvals and was expected to close in the third quarter of 2023.

Group chief executive Fabio Barbosa said the divestment would strengthen and deleverage Natura &Co's balance sheet and free resources for strategic priorities, including Latin America integration, further optimization of Avon International's footprint, and improvement of The Body Shop's business. Aesop's gross sales grew from 28 million dollars in 2012, when Natura acquired it, to 537 million dollars in 2022, with stores and counters expanding from 52 to 395 across 29 markets.

Natura &Co is a Brazil-based multi-brand cosmetics group that includes Avon, Natura, The Body Shop and Aesop; Aesop was later classified as discontinued operations after the announcement.

Natura &Co Posts Fourth Quarter Sales Growth in Constant Currency; Widens Net Loss

Press Release | 3/13/2023

São Paulo, March 13, 2023 --

Natura &Co Holding reported fourth-quarter 2022 consolidated net revenue of 10.4 billion reais, up 3.0 percent at constant currency but down 10.8 percent in reais. Adjusted EBITDA was 1.095 billion reais with a 10.5 percent margin, down 280 basis points. The quarter's net loss attributable to controlling shareholders was 890 million reais.

Full-year revenue was 36.3 billion reais, down 9.5 percent in reais and up 0.4 percent in constant currency, with adjusted EBITDA of 3.16 billion reais. Net debt excluding leasing improved to 7.4 billion reais from 8.8 billion reais in the prior quarter on better working capital and cash-tax dynamics. Group chief executive Fabio Barbosa said the company reassessed its growth model mid-2022 to prioritize profitability, cash conversion, cost structure and footprint.

Natura &Co said it is accelerating Natura-Avon integration in Latin America, evaluating strategic alternatives for Aesop including a possible stake sale, optimizing Avon International's geographic footprint, and rightsizing The Body Shop.

Natura &Co Confirms It Is Evaluating Minority Stake Sale in Aesop

Press Release | 11/30/2022

Natura &Co Holding said in a notice to the market that it is evaluating the potential sale of a minority stake in its Aesop luxury skincare brand, in addition to the IPO and spin-off alternatives it had been studying.

The company said the process is at an early and confidential stage of consultations and that no terms have been defined. The board will decide on the best course after evaluating all alternatives, and an IPO or spin-off remains possible.

Natura &Co announced in October that it was studying a separation of Aesop to fund the brand's accelerated growth and give each of its businesses more autonomy.

Natura &Co Posts Third Quarter Net Loss and Withdraws Guidance

Press Release | 11/9/2022

Natura &Co Holding reported third-quarter 2022 consolidated revenue of 9.0 billion reais, down 5.7 percent in reais and up 2.2 percent in constant currency. Natura &Co Latam rose 10.2 percent and Aesop 21.5 percent in constant currency, while The Body Shop fell 19.5 percent and Avon International declined 8.1 percent, or 3.1 percent excluding Russia and Ukraine. The group posted a net loss of 560 million reais compared with net income of 273 million reais a year earlier. Adjusted EBITDA was 773 million reais with an 8.6 percent margin, and net debt was 8.8 billion reais.

In a same-day material fact, the company withdrew its previously disclosed guidance for consolidated revenue, EBITDA margin, net debt ratio, Avon International margin and investment, and Avon synergies.

Chief executive Fabio Barbosa outlined steps including integrating Avon and Natura in Latin America starting in Peru and Colombia in 2023 before Brazil, changes to Avon's footprint in markets such as India and Saudi Arabia, the closure of Avon's Suffern research site, IT outsourcing and rightsizing at The Body Shop.

Natura &Co Studies Aesop IPO or Spin-Off

SEC Filing | 10/17/2022

Natura &Co Holding said its board of directors authorized management to carry out a comparative study of a potential initial public offering of Aesop versus a spin-off of the luxury skincare brand, which could be followed by a public offering. Under the structures being studied, Aesop would be held by a U.S.-listed holding company led by Aesop chief executive Michael O'Keeffe.

The company said any transaction would require a corporate reorganization and could require approvals from shareholders, creditors and regulators. The goal is to fund Aesop's accelerated growth and give each of the group's brands greater autonomy. No decision had been made on the structure or timing.

Natura &Co owns Natura, Avon, The Body Shop and Aesop, and relies heavily on direct-selling consultants and representatives in Latin America and elsewhere.

Natura Group Second Quarter Revenue Holds Flat in Constant Currency

Press Release | 8/11/2022

Natura &Co said second-quarter 2022 consolidated net revenue was 8.7 billion reais, up 0.4 percent at constant currency and down 8.6 percent in reais. Adjusted EBITDA margin was 8.0 percent, down 50 basis points. The group reported a net loss of about 766 million reais and ended the quarter with net cash of 4.3 billion reais.

Natura &Co Latam revenue rose 5.6 percent at constant currency, led by the Natura brand, while Avon International and The Body Shop declined and Aesop grew 24.5 percent at constant currency. Group chief executive Fabio Barbosa, in his first weeks in the role, said the holding company would be made lighter and leaner, with mapped annualized corporate-expense savings of at least 40 percent if changes had applied last year, and that margin and operating cash flow were immediate priorities.

Natura Group CEO Roberto Marques Steps Down in Reorganization

Press Release | 6/15/2022

Natura &Co said it would reorganize into a simpler holding-company structure giving more accountability to its Natura, Avon, The Body Shop, and Aesop business units. Group chief executive and executive chairman Roberto Marques is stepping down from those roles, remaining on the board during the transition and planning to retire by year-end.

Non-executive director Fabio Barbosa, chairman of the People Committee, will lead the group and a workstream to define the new corporate structure. Roles such as sustainable growth officer and chief transformation officer will no longer exist or will be revisited. Founder Guilherme Leal said the board supports more autonomy for each business after a period of transformative acquisitions and integration.

Natura Group First Quarter Revenue Falls as Avon Transformation Continues

Press Release | 5/5/2022

Natura &Co said first-quarter 2022 consolidated net revenue was 8.3 billion reais, down 12.7 percent in reais and 4.6 percent at constant currency. Adjusted EBITDA margin was 7.2 percent, and net income was a loss of 643.1 million reais. The group ended the quarter with net cash of 4.5 billion reais.

Executive chairman and group chief executive Roberto Marques said inflation, supply-chain costs, currency moves, the war in Ukraine, and Avon transformation steps weighed on results, while Natura resumed growth in Brazil and Aesop revenue rose 21.3 percent at constant currency. The company reaffirmed a 2024 EBITDA margin target of 14 to 16 percent but pushed its revenue and leverage targets to 2024 from 2023.

Natura Group Full Year Net Income Reaches 1 Billion Reais

Press Release | 3/9/2022

Natura &Co said fourth-quarter 2021 consolidated net revenue was 11.6 billion reais, down 3.0 percent, while net income rose 292 percent to 695.4 million reais. Full-year net revenue rose 8.8 percent to 40.1 billion reais, and net income reached 1 billion reais, reversing a prior-year loss. Adjusted EBITDA margin rose 90 basis points in the fourth quarter to 13.3 percent. Digitally enabled sales reached 52 percent of total revenue.

The group said Avon integration synergies were ahead of plan, with nearly half of the overall target achieved by year-end. Avon brand revenue in Latam fell 12.3 percent in the fourth quarter but rose 6.6 percent for the year. The company said it was suspending The Body Shop and Aesop operations in Russia via head franchises and suspending Avon exports while supporting local representatives. Cash ended the year at about 6 billion reais.

Natura Group Third Quarter Revenue Falls 4.2 Percent to 9.5 Billion Reais

Npros.com | 11/15/2021

Natura and Co reported third quarter consolidated net revenue of 9.5 billion reais, down 4.2 percent from a record comparison a year earlier, when the group had grown more than 20 percent. For the first nine months, net revenue rose 14.4 percent to 28.5 billion reais. Nine-month net income was 352.6 million reais, reversing a loss of 827.6 million reais in the same period of 2020. The adjusted EBITDA margin for those nine months was 9.1 percent.

The group said it would repurchase up to 1.5 billion reais of shares and was studying a move to the New York Stock Exchange while keeping a dual listing through Brazilian depositary receipts. Online sales and social selling were 52 percent of revenue. Avon total sales for the first nine months rose 10.7 percent, the first such nine-month gain in five years, while Avon International third quarter net revenue fell 14.3 percent. The Body Shop third quarter net revenue rose 0.4 percent.

Executive chairman and group chief executive Roberto Marques said integration of Avon continued, including a new commercial model, and that Aesop was preparing a China entry. He said every brand posted nine-month growth despite pandemic headwinds.

Natura Group Second Quarter Revenue Rises 36 Percent to 9.5 Billion Reais

Press Release | 8/12/2021

Natura and Co reported second-quarter consolidated net revenue of 9.5 billion reais, up 36.2 percent in Brazilian reais and 31.7 percent in constant currency. Net income was 235 million reais. Adjusted EBITDA, excluding transformation costs, synergy costs, Avon acquisition effects, and other non-recurring items, rose 31.9 percent to 811.2 million reais, an 8.5 percent margin.

The group said all four businesses grew at a double-digit rate, including Avon in Latin America and Avon International. Digitally enabled sales, covering e-commerce, social selling, and relationship selling on the main apps, were 51 percent of revenue. Online sales were about four times the second quarter of 2019 and 10 percent of total sales. The payments platform Co Pay had more than 220,000 accounts in Brazil after a 50 percent increase in six months, with first-half payment volume near 2.0 billion reais.

Avon integration continued, with first-half synergies of 76.5 million dollars, in line with estimates. The group said representative satisfaction rose and that pilots of a new commercial model showed early positive results. Adjusted EBITDA margin was 30 basis points lower than a year earlier because the 2020 quarter had one-time cost cuts and government support. Excluding those effects, the company said the margin would have improved by 210 basis points.

Natura Group First Quarter Revenue Rises 26 Percent as Digital Sales Surge

Press Release | 5/12/2021

Natura and Co reported first-quarter consolidated net revenue of 9.5 billion Brazilian reais, up 25.8 percent in reais and 8.1 percent at constant currency. Reported EBITDA rose 470.7 percent to 829.1 million reais. Adjusted EBITDA rose 68.5 percent to 963.2 million reais.

Executive chairman and group chief executive Roberto Marques said all four brands grew in reais and that digital and online sales helped the group beat the global cosmetics market. Total online sales rose 166 percent. Natura brand digital sales rose 253 percent, and Avon global online sales rose 132 percent.

Natura and Co Latam revenue rose 24.6 percent in reais. The Natura brand rose 29.6 percent and Avon Latam rose 20.0 percent. Avon International revenue rose 11.4 percent in reais. The company also said it raised Avon synergy targets to between 350 million and 450 million U.S. dollars by 2024 and completed a 1 billion U.S. dollar sustainability-linked bond issue.

Natura Group Fourth Quarter Revenue Rises 24 Percent and Profit Triples

Press Release | 3/4/2021

Natura and Co reported fourth-quarter consolidated net revenue of 12 billion Brazilian reais, up 24.3 percent in reais and 6.4 percent at constant currency. Net income rose 200.7 percent to 177.4 million reais. Adjusted EBITDA rose 12.3 percent to 1.5 billion reais. The group includes the Natura brand, Avon, The Body Shop, and Aesop.

Group digital sales rose 79 percent, and every brand posted its highest e-commerce sales. Avon e-brochure revenue rose nearly 90 percent from the fourth quarter of 2019. In Latin America, the Natura brand net revenue rose 24.7 percent in reais, and the Avon brand rose 16.2 percent. Avon International net revenue rose 12.1 percent in reais, including a third straight quarter of market-share gains in the United Kingdom on a constant-currency basis.

One year after Avon joined the group, integration synergies were 25.5 million dollars in the quarter and 73.3 million dollars for the full year, ahead of the company estimate. A new Avon commercial model is being rolled out. Full-year 2020 group net revenue was 36.9 billion reais.

Executive chairman and group chief executive Roberto Marques said a fast shift to digital social selling and e-commerce offset store closures and let the group outperform the cosmetics, fragrance, and toiletries market. The group also said it became a certified B Corporation, which it called the largest such company, and that it completed a 1 billion dollar capital raise that left net debt at 0.97 times EBITDA.