Natura has published its results for the first quarter of fiscal 2017. The Brazilian naturals brand reported a 3.3 percent rise in revenue, reaching R$2.396 billion and a 68 percent rise in EBIDTA, which came in at R$364.6 million.

However, shares dropped following the company’s earnings release as it was revealed that the brand’s reversal in fortunes was largely due to non-recurring events in Brazil, in particular the reversal of the provision for PIS and Cofins taxes payable. Excluding these, the company’s consolidated EBIDTA was down 3.3 percent to R$209.8 million, which Natura attributed to foreign currency effects, and its investment in advertising, and sales incentives and training. As a Reuters report reveals, this was below mean analyst expectations of R$218.9 million.

Natura Chief Executive Officer Joao Paulo Ferreira revealed on a conference call that he remains cautious, and the outlook in the short-term is volatile.