THE WHAT? Natura &Co has reported its results for the first quarter of fiscal 2022. The Brazilian owner of Aesop and The Body Shop saw revenue drop 4.6 percent in constant currency top R$8.3 billion.
THE DETAILS However, highlights of the quarter included the return to growth of homegrown Natura brand in Brazil, with significant gains in market share in the quarter. Aesop continued to post strong growth, with revenue up 21.3 percent at constant currency and double-digit growth in all markets.
In contrast, Avon International’s revenue dove 10.1 percent, impacted by the war in Ukraine, lower disposable income in Europe and intentional optimization linked to the implementation of the new commercial model.
The Body Shop, meanwhile, saw net revenue plummet 16 percent as ‘expected channel rebalancing’ occurred following TBS At Home and e-commerce’s lockdown booms.
THE WHY? Natura &Co said that its Q1-22 performance was notably impacted by rising inflation affecting discretionary spend, cost pressures in the supply chain and the war in Ukraine.
Roberto Marques, Executive Chairman and Group CEO, declared, “While our Q1 performance was impacted by rising inflation, cost pressures in the supply chain, unfavourable currency movements, and the first effects of the war in Ukraine, they also reflect The Body Shop channel rebalancing and weak consumer demand in Europe, as well as key strategic decisions related to Avon’s transformation, including a reduction in the product portfolio and the implementation of the new commercial model.