THE WHAT? Natura &Co has reported its results for the final quarter of fiscal 2021. The Brazilian owner of The Body Shop, Aesop and Avon saw net income more than triple, hitting R$1 billion for the full year, and posted an EBITDA margin gain of 90 basis points in the last three months of the financial year.
THE DETAILS Revenue dipped 3 percent versus the year-ago quarter but in the full year, hit R$4.01 billion, up 8.8 percent on 2020 figures (+3.8 percent in constant currency). Digitally-enabled sales reached 52 percent on total revenue.
Natura &Co said that it has made significant donations to relief organisations acting on the ground in Ukraine and had suspended operations in Russia for The Body Shop and Aesop via its Head Franchises and Avon was suspending exports, while continuing to support its representatives via its local plants.
THE WHY? Roberto Marques, Executive Chairman and Group CEO, declared, “At a time when conflict is again impacting millions of people, our thoughts are with our teams in Ukraine and Russia, and with all those who find themselves in harm’s way.
“The geopolitical situation adds new challenges to our businesses, beyond headwinds in supply chain, rising inflation, new pandemic restrictions and weak consumption in Brazil that has a strong effect on the CFT market. However, our focus on costs and continued transformational changes allowed us to significantly expand our EBITDA margin and net income in the fourth quarter of 2021. In the full year, we posted net sales growth and net income above R$ 1 billion, and ended the year with a strong cash position of R$6 billion.
“This performance reflects the remarkable mobilization of our teams to focus on profitability, but also the strength of our omnichannel model and the depth of the reinvention of the social-selling model through digitally-enabled sales. At Natura &Co Latam, the Natura brand outperformed the CFT market, with strong growth in Hispanic markets in the fourth quarter that helped offset a tough environment in Brazil. Avon International delivered strong gains in EBITDA margin in Q4 as it accelerates the streamlining of its operating model and benefitted from year-end seasonality. The Body Shop demonstrated its ability to adapt through an enhanced multi-channel offer and the brand’s growing appeal. And Aesop continues to post double-digit growth year-after-year, outperforming global luxury brands.”