Increased sales boosts profits for Natura

By Simon Pitman contact

- Last updated on GMT

Increased sales boosts profits for Natura
Natura’s latest results for its second quarter shows that the company continues to make big gains, with both sales and profits both showing very strong gains.

The company reported that consolidated revenue for the quarter was R$3.4 billion, which was up by 9.8% compared to the same period last year, while EBITDA was up by 27% to R$424.7 million while net income more than doubled to R$66.6 million for the same period.

For the first half year results, the performance shows the company is building on an already strong first quarter with sales up by 9.2% for the first six months of the year and EBITDA increasing by 16.6%.

Strong gains across three main brands

The quarter marked a significant step for Natura, having confirmed its acquisition of Avon Products, but the results for this part of the business will not be accounted for until the financial year 2020.

In the meantime, Natura revenues for the second quarter were up by 6.7%, boosted by strong performances over the Valentine’s and Mother’s Day campaigns. In the LATAM region sales were up by 5.3% during the period, while Brazil sales were up by 17.3%.

Net revenues in BRL were up by 7.5% for the Body Shop, which translated to an increase of 2.6% in constant currency, while sales for Aesop were up 20&% in BRL, an increase of 9.2% in constant currency.

A step towards becoming a major multinational

Commenting on the results, Roberto Marques, executive chairman of the board for Natura & Co stated that the acquisition of Avon Products was part of a global multi-brand, multi-channel, purpose-driven group.

“The acquisition of Avon will make Natura & Co the world’s fourth largest pure-play beauty group and create a leader in direct-to-consumer,”​ said Marques.

“We expect to close the transaction as planned in early 2020. We are energized by the prospect of working with Avon and its representatives, reinvesting the target synergies to accelerate growth anf further strengthen Natura & Co as a force for good in the industry.”

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