Natura sales up driven by new product launches

By Katie Nichol

- Last updated on GMT

Brazilian cosmetics company Natura has reported a 24.1 percent increase in net sales for the second quarter of 2010, aided by an increase in the number of new product launches.

The direct seller said net sales came in at BRL1.28bn (729m) compared to BRL1.03bn for the prior year period and net income increased 13.8 percent from BRL168.3m to BRL191.5m.

For the first half of the year, sales increased 23 percent to a figure of BRL2.3bn compared to the first six months of 2009, and net income rose 8.5 percent to BRL333m.

Quarter sees 38 new product launches

According to Natura, 38 new products were launched during the second quarter, which together with the 14 products launched in Q1 makes a total of 52 new products so far this year.

Fresh launches included the new fragrance Kaiak Pulso, which sold a record 1.9m units during the product launch cycle, the company said.

Additionally, the Chronos skin care line was relaunched with an improved formulation, and now allows consumers to select products by both chronological age and the intensity of visible signs.

Brazil represents biggest market

Brazil represents the biggest market for the company, with 93.1 percent of the company’s sales realized in this area for the quarter, a figure of BRL1.19bn representing an increase of 23.4 percent.

Referencing data from Association of the Cosmetic, Toiletry and Fragrance Industry (ABIHPEC), Natura said that the cosmetics and personal care market in Brazil grew 12.7 percent in the first two months of 2010. The company says its market share in the country during this period was 23.7 percent compared to 22.8 percent the same period last year.

International sales, which represented 6.9 percent of the company’s second quarter revenues, were up 21.8 percent from the same period last year, coming in at BRL92.8m.

The company increased its network of sales consultants 23.3 percent during the quarter to 123,700, and a rise in internet sales was also recorded.

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