SAO PAULO, Brazil — Brazilian cosmetics company Natura intends to invest in new brands in beauty and wellness segments in Europe and the United States through venture capital funds, executives said on Friday.

"Dynamo Beauty Ventures is the first vehicle that matches our criteria and focus moving forward and we anticipate there will be more of these initiatives in the future," Roberto Marques, chairman of Natura's board, told analysts in a call to discuss quarterly results. Marques did not disclose how much Natura is investing.

Natura shares were down 0.9 percent in early trading, at 50 reais ($12.70), after the company posted weaker than expected results amid a sluggish economic recovery in Brazil.

First-quarter net income grew by 72.8 percent year-on-year to 41.9 million reais ($10.63 million), below a consensus estimate of 59.1 million reais ($15.01 million) compiled by Refinitiv, as higher expenses overshadowed revenue gains.

By Gabriela Mello; editors: Franklin Paul and Phil Berlowitz.