Natura &Co reports slight Q3 decline; strong growth in first nine months

Natura &Co reports slight Q3 decline; strong growth in first nine months

THE WHAT? Aesop and The Body Shop parent company Natura has reported a slight sales decline in Q3, with consolidated net revenue in at R$9.5 billion, down 4.2 percent in BRL and 4.5 percent at constant currency.

THE DETAILS However, the beauty giant posted strong growth in the first nine months of the year and compared to Q3 two years ago, prior to the onset of the pandemic. On a YOY basis, net income improved by over $1 Billion Reais. 

Digitally-enabled sales, including online, reached 52 percent of the company’s total revenue for Q3.

Natura &Co’s Latam net revenue decreased 2.4 percent in BRL during Q3, however, was up 14.4 percent over nine months. Avon International’s net revenue decreased 14.3 percent in Q3 but was up 6.3 percent in the first nine months, while Natura’s brand power ‘reached its highest level.’ 

The Body Shop posted a ‘solid performance,’ with net revenue up 0.4 percent in BRL in the quarter and 20.6 percent in the nine months

According to a press release, “Over the first nine months of the year, net revenue was R$28.5 billion, up 14.4% vs the same period last year in Brazilian Reais (+8% at constant currency), adjusted EBITDA margin stood at 9.1% (-190 basis points) and net income reached R$352.6 million, reversing a loss in the year-ago period of R$827.6 million.”

Natura has also announced it is launching a share price of R$ 1.5 billion, and is considering switching primarily to the NYSE to highlight its increasingly global nature, while maintaining a dual listing with Brazilian Depositary Receipts (BDRs) in Brazil. 

THE WHY? Roberto Marques, Executive Chairman and Group CEO, said, “Despite a very tough comparable vs last year, when we grew over 20 percent, and some persistent external headwinds related to the global pandemic, Natura &Co continues to progress on its key initiatives, attesting to the underlying strength of our business. We again outperformed the global Cosmetics, Toiletries and Fragrances market on a year-to-date basis and versus pre-pandemic levels, all our brands and businesses posted growth over nine months and the Group’s digitalization continued to advance.”

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