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Natura's Losses Rise to $181 Million But Margins Grow

In its first-quarter results, the Brazilian beauty company’s losses widened and revenue dropped, but grew margins as it continues a turnaround plan that has seen it shed Aesop and The Body Shop.
Natura.
Natura. (Shutterstock)

Brazilian cosmetics maker Natura &Co reported late on Monday a net loss of 934.9 million reais ($181.29 million) for the first quarter, larger than the 652 million-real loss it had posted a year earlier.

Why It’s Important

The cosmetic giant has been pushing for a turnaround and shedding global assets, including the sales of the Aesop and The Body Shop brands, as it turned its focus to Latin America, where it has been integrating Avon and its namesake brand.

Natura rapidly grew through high-profile acquisitions in recent years, including those of The Body Shop, Aesop and Avon International, but ended up struggling with profitability.

By The Numbers

Natura’s first-quarter net revenue dropped 5.7 percent year-on-year to 6.1 billion reais.

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Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 4.1 percent to 682.8 million reais, bringing the closely watched EBITDA margin up 110 basis points to 11.2 percent.

Key Quotes

“We are encouraged that the first quarter of the year showed positive results with a consolidated margin expansion,” chief executive Fabio Barbosa said.

“The solid start to the year gives us confidence that the initiatives we are implementing are beginning to deliver the expected results and we remain extremely confident with the potential of the integration of both brands in Latam,” he added.

By Gabriel Araujo; Editors: Luana Maria Benedito and Sharon Singleton

Learn more:

Natura Mulls New Listing for Avon’s Business Outside Latin America

Brazilian cosmetics maker Natura &Co said on Monday its board authorised management to study splitting its Avon brand outside Latin America, which could spawn a new listed firm managing the business outside the region.

In This Article

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