Natura results show strong revenue growth across portfolio

By Simon Pitman contact

- Last updated on GMT

Natura results show strong revenue growth across portfolio

Related tags: Natura, Brazil, The body shop

Natura & Co has posted strong third quarter results, showing that its three main brands – Natura, The Body Shop and Aesop – all showed good growth.

The company reported that net revenues reached R$3.5 billion, showing that sales were up 7.2% on a reported basis and up by 10.1% at a constant currency rate, while net income for the period came in at R$68.6 million.

As expected, the company said that its profit for the quarter was negatively impacted by planned investments for the first quarter of 2020 relating to the acquisition of Avon and an expansion program that will make the fourth largest pure play beauty group in the world.

Performance strong, despite headwinds

In the first nine months of the financial year, the company reported that net income rose by a solid 6% to R$176.6 million.

“Natura &Co posted a remarkable sales performance in the third quarter, exceeding market expectations, with double-digit growth in constant currency,” ​said Roberto Marques, Executive Chairman of Natura & Co.

“All our businesses and brands again contributed to growth despite a market that remains challenging in Brazil, where Natura continued to grow market share, and Hong Kong, which impacted The Body Shop and Aesop.”

Sustainability initiatives

During the third quarter the company also made advances in its sustainability initiative, known as the Natura Carbon Neutral program.

The initiative has been recognized as one of the most far-reaching in the beauty industry, and aims to completely offset the company’s carbon emissions.

In line with the progress its made towards this goal, the company received the 2019 United Nations Global Climate Action Award during the quarter, putting amongst the most proactive businesses in the world in the quest to mitigate climate change.

Natura revenues show the strongest growth

The Natura brand’s revenues were up by 8.1% in Brazil during the quarter, a performance that was marked by a strong innovation pipeline and a continued rise in productivity from its consultants during the period.

At the Body Shop, the company is continuing to turn around the division’s performance, with sales up 1.1% in Reals, and up by 3.8% in constant currencies, a figure underscored by stronger sales growth in the UK.

At Aesop solid growth was recorded during the quarter, with revenues up 10.8% in Reals and up by 10.2% in constant currency, a figures that was boosted by the opening of four new signature stores.

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