Brazilian direct sales giant Natura has announced a bolstered Q2 net profit, which more than doubled year on year, with the strong growth beating market expectations.
The company reported revenue growth for all three brands, with quarterly net income growing by 109.4 percent to $16.4 million. The quarter ending 30 June also marked the acquisition period of Avon Products.
Consolidated net revenue rose 9.8 percent on a reported basis to R$3.4 billion while net income grew 110 percent to R$66.6 million.
Roberto Marques, Executive Chairman of Natura &Co, said, “With strong revenue growth, a double-digit increase in adjusted EBITDA and a doubling in net income, Natura &Co posted another very solid set of results in Q2. All three of our existing brands and businesses contributed to this strong performance while making further progress in their sustainability agendas.”
Net revenue in Brazil rose 6.7 percent in the quarter, driven by strong Mother’s Day and Valentine’s Day sales, while Latin America grew 5.3 percent in adjusted revenue in Reais.
The Body Shop showed promise from its transformation project, with net revenue up 7.5 percent in Reais and 2.6 percent in constant currency, while like-for-like sales grew 6.7 percent in the UK.
Aesop meanwhile reported a revenue increase of 20.7 percent in Reais and 9.2 percent in constant currency. Natura &Co net-debt-to-EBITDA ratio stood at 2.83 times in Q2, decreasing from 3.30x in comparable period in 2018. According to the company, “The group is on track to achieve its target of reducing the company’s leverage to the pre-The Body Shop acquisition level of 1.4 times by 2021.”