THE WHAT? Natura &Co has reported its results for the second quarter of the current financial year. The owner of The Body Shop and Avon saw net revenue rise 1.9 percent versus the prior-year period in constant currency, reaching R7.8 billion.
THE DETAILS Net loss stood at R732 million, an improvement on the R766.7 million loss reported in the same period last year. Adjusted EBITDA rose 25.8 percent to R753 million.
Revenue growth was driven by another strong performance by the Natura Latam unit, which put on 19.5 percent. However, this impressive performance was offset by continued challenges at The Body Shop, where sales dipped 12.5 percent, and Avon Latam (-36.8 percent). Avon International narrowed its top-line drop to -1.3 percent, compared to the prior-year’s -7.5 percent.
THE WHY? Natura &Co CEO Fabio Barbosa explains, “Natura & Co’s second-quarter performance continued to show the improvement already observed in Q1, with low-single digit top line growth at constant currency and a significant improvement in adjusted EBITDA margin. This was mainly driven by gross margin, benefiting from mix effects, partially offset by investments and inflation. Net income was still impacted by high financial expenses, which will be addressed upon closing of the sale of Aesop, expected to occur in Q3-23.”