Brazillian cosmetics maker Natura has reported a drop in Q3 net income due to a harsh recession and plunging revenues.

According to a security filing, the company reported a 44.6 percent year on year net income fall to reais ($23.3 million) – this news comes during Brazil’s harsh recession with consumers said to be trading down for cheaper products.

Consolidated net revenues also dropped, falling 4.7 percent to 1.9 billion reais. As a result of these disappointing results Natura has revised its investment guidance for this year to 300 million reais from 350 million reais.

José Roberto Lettiere, Chief Financial Officer, told Reuters, “Brazil remains a challenging market, and consumers have intensified the search for low-cost products.”

In other news Natura has appointed Joao Paulo Brotto Gonçalves Ferreira as Chief Executive Officer, succeeding Roberto Oliveira de Lima who has retired.