Brazil · Delayed Price · Currency is BRL Natura Cosméticos Earnings Call Transcripts
Fiscal Year 2025
-
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.
-
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.
-
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.
-
The company is refocusing on its core Latin American strengths, prioritizing the Natura brand and leveraging Avon for market expansion, while driving digital transformation, operational efficiencies, and sustainability. Margin and cash flow improvements are underway, with further gains expected from ongoing integration and innovation.
-
Q1 2025 saw strong revenue growth in Latin America, improved margins, and ongoing corporate simplification. Avon International's restructuring and cost-cutting are underway, with cash burn expected to decrease by year-end. Transformation costs will persist but are being balanced across quarters.
Fiscal Year 2024
-
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.
-
Sales grew 18.5% in constant currency, with strong margin and EBITDA expansion, despite a BRL 7 billion non-cash loss from discontinued operations due to API deconsolidation and Chapter 11. Integration and innovation drove share gains and robust cash position.
-
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.