THE WHAT? Natura &Co consolidated sales were down 12.7 percent to R$7.0 billion in Q2 with the company feeling the impact of COVID-19. However, e-commerce sales grew 225% with the company adapting to digital platforms in the wake of the pandemic.
THE DETAILS The net revenue of R$7.0 billion was driven by growth of the Natura brand in Brazil and strong growth in sales in Reais by The Body Shop and Aesop, with digital social selling having expanded to 889,000 Natura consultant online stores – a 65 percent YOY rise.
Avon International reported a net revenue decrease by 21.6% in BRL while The Body Shop’s increased 15.5%, driven by a strong performance online and in direct sales. Aesop also achieved growth, with net sales growing 34.8% in Q2 as a ‘430% increase in digital sales helped offset the closure of 90% of the store network through much of Q2.’
During the quarter Natura &Co launched Commitment to Life, a comprehensive sustainability plan through 2030, which, according to the company, further increases its “actions to tackle some of the world’s most pressing issues, including the climate crisis and protecting the Amazon, the defense of human rights, ensuring equality and inclusion and embracing circularity and regeneration.”
In other news, the company successfully completed a R$2 billion capital raise, which is said to enable it to invest R$400 million in the coming six months in digital and IT, with further significant investments planned over the next four years.
THE WHY? Discussing the quarter results, Roberto Marques, Executive Chairman and Group CEO of Natura &Co, said, “Our continued efforts to accelerate the digital transformation of our businesses enabled us to largely offset store closures, ensure business continuity, and deliver market outperformance during a period in which much of the world faced continued lockdown measures. Every brand and business in the Group became truly omnichannel during the second quarter and—given the circumstances—helped deliver a robust and competitive overall performance, both in terms of sales and EBITDA.”