The what? South American beauty company Natura has reported a Q3 revenue boost of 7.2 percent to R$3.5 billion, bolstered by strong sales across all three brands: The Body Shop, Aesop and Natura.
The details Exceeding market expectations, its adjusted EBITDA hit R$459.3 million while its Q3 net income was R$68.6 million. The increase was said to have reflected a “planned increase in investments at Natura in digitalization and the brand and non-recurring costs related to the Avon acquisition.”
Natura fared well in Brazil, up 8.1 percent in the quarter, while online sales saw double digit growth. The Body Shop was making headway thanks to the transformation project with net revenue up 1.1 percent in Reais and 3.3 percent in constant currency. Aesop’s revenue increased 10.8 percent in Reais and 10.2 percent in constant currency.
Roberto Marques, Executive Chairman at Natura &Co said, “This quarter was also marked by several highlights: Natura celebrated its 50th anniversary and entered a new country, Malaysia, leveraging The Body Shop’s market knowledge. The Body Shop joined Natura in being certified as a B-Corp and inaugurated its new store concept in London, reconnecting with its activist heritage. And Aesop, while continuing its expansion, also stepped up its sustainability actions. All these Q3 achievements mark decisive new steps in the building of our multi-brand, multi-channel, purpose-driven group.”
Natura also noted ‘major steps towards closing the transformational acquisition of Avon Products’, with Brazil’s anti-trust authority having recently approved the acquisition without restrictions, and Natura and Avon’s shareholders having both voted in favor of the transaction at shareholders’ assemblies.
The why? The better-than-expected results across the board were attributed to an increased investment in Natura, with the concerted drive to reposition The Body Shop as an ethical company clearing reaping rewards. Aesop also increased its sustainability actions, helping to bolster results.