Brazil · Delayed Price · Currency is BRL Natura Cosméticos Earnings Call Transcripts
Fiscal Year 2026
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Q1 2026 saw revenue and profitability declines due to macro headwinds, restructuring costs, and operational disruptions, but early signs of recovery are visible. Margin expansion and cash generation targets for 2026 are reaffirmed, with efficiency gains expected from Q2 onward.
Fiscal Year 2025
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Completed corporate simplification and refocused on core LatAm operations, with EBITDA margin expansion and net income from continued operations more than doubling year-over-year. Avon relaunch and digital channel growth underpin a positive outlook for 2026.
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Q3 2025 saw revenue and profitability declines due to macroeconomic headwinds, operational disruptions, and continued investment in strategic projects. Structural simplification and efficiency measures are expected to drive margin recovery and sustainable growth from 2026.
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Q2 2025 saw revenue and margin growth in Latam, led by strong Natura brand performance and digital channel expansion, while Avon faced declines amid integration. Net income reached BRL 445 million, with Wave Two integration and asset sales progressing. Macroeconomic headwinds and FX volatility remain key risks.
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The company is refocusing on its core strengths in Latin America, prioritizing the Natura brand and leveraging Avon for new customer acquisition, while driving profitability through integration synergies, digital innovation, and disciplined investments. Significant growth is expected from omnichannel expansion and increased household penetration, especially in Mexico and Hispana.
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Q1 2025 saw strong revenue growth and margin recovery in LATAM, but Avon International continued to pressure group margins and cash flow. Ongoing restructuring, cost controls, and integration in Mexico and Argentina are expected to drive further efficiencies and margin expansion.
Fiscal Year 2024
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Wave 2 integration drove strong revenue and profitability gains in Latin America, with Q4 revenue up 16.1% and Natura Brazil up 21%. Transformation costs and Argentina's macroeconomic challenges impacted margins, while strategic alternatives for Avon International remain under review.
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Revenue grew 18.5% in constant currency, with strong margin expansion and robust EBITDA gains. A BRL 7 billion non-cash loss from discontinued operations offset positive net income, but underlying profitability and cash flow improved. Integration and operational simplification continue to drive gains.
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API filed for Chapter 11, with Natura &Co supporting via financing and a bid for Avon's non-US assets. Q2 2024 saw strong adjusted EBITDA growth, robust performance in Brazil, and digital expansion, while Home & Style declined due to portfolio optimization.