default-output-block.skip-main
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

The Body Shop Owner Eyes China Following Hong Kong Protests

Natura, which also owns Aesop, aims to find a way of increasing its China presence without testing its products on animals.
The Body Shop | Source: Shutterstock
By
  • Reuters

SAO PAULO, Brazil — Brazilian cosmetics firm Natura & Co is still facing challenges in Hong Kong, where both its Body Shop and Aesop brands have been affected by months of violent protests, and does not expect the situation to improve in the short-term, executives said on Thursday.

"Hong Kong is an important market for The Body Shop and Aesop, especially as we do not yet have a physical presence in China because of the animal testing," Natura's chairman, Roberto Marques, told analysts and investors in a call to discuss third-quarter results.

"A mid-long term solution is finding a way to increase our presence in China while keeping our values," Marques said, adding Natura recently entered the Malaysian market and is pleased with initial results.

Despite the ongoing turmoil in Hong Kong, The Body Shop brand has been performing well, with accelerating top-line growth, particularly in the UK, Middle East and Latin America, Chief Executive João Paulo Ferreira said.

Both executives declined to discuss Natura's integration with Avon Products , but emphasised the companies continue on track to conclude the transaction in the first quarter of 2020.

Almost two years after acquiring The Body Shop brand from L'Oréal in a €1 billion transaction, Natura struck in May a deal with Avon to create the world's fourth-largest beauty group.

The deal was approved by Brazilian antitrust body Cade on November 6 and by shareholders of both companies on November 13. "We still lack antitrust approval by a handful of remaining jurisdictions, but we are on track and excited with recent progress made," Marques said.

Shares in Natura were little changed in early afternoon trade at 32.06 reais.

On Wednesday night, the company posted a net income of 68.6 million reais, missing market expectations.

By Gabriela Mello; editors: Franklin Paul and Steve Orlofsky.

In This Article

© 2021 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
Building a DRC Challenger Brand
© 2022 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions and Privacy policy.
Building a DRC Challenger Brand