THE WHAT? Natura &Co has announced its results for the first quarter of fiscal 2023. In the three months ended March 31, 2023, the Brazilian beauty firm posted net revenue of BRL8 billion, a rise of 3.4 percent in constant currency (-2.8 percent in BRL). Gross margin was 67.7 percent, up 370 bps versus the prior-year period.
THE DETAILS The group’s rise in revenue was largely due to Natura &Co’s Latam unit, which saw net sales grow 9 percent in constant currency. Avon International’s revenue dropped 7.5 percent in CC while The Body Shop saw net revenue plummet 9.4 percent in CC. The soon-to-be-divested Aesop recorded double-digit growth but is now classified as Discontinued operations pending the closing of its sale to L’Oréal, anticipated in Q3.
THE WHY? Fabio Barbosa, Group CEO of Natura &Co, reveals, “Natura &Co’s performance in the first quarter is in line with our plan and with our previous communication, as Q1 numbers show a solid improvement both in gross and adjusted EBITDA margin, while the company continues to put in action important structural changes in its portfolio, focusing on simplifying its structure and improving its capital structure.”