Natura &Co - the entity now gathering the brands Natura, Avon, The Body Shop, and Aesop - posted revenue growth in the first quarter of 2020, with a very strong digital ramp-up in the past several weeks as the company quickly adapted to the unprecedented global impacts of the Covid-19 pandemic.
This quarter is the first to include Avon Products, Inc after its acquisition closed on January 3, 2020. With the addition of Avon, Natura &Co becomes the leader in the Latin American cosmetics, fragrances and toiletries market, with 11.8% market share (according to data from Euromonitor).
Natura &Co has accelerated Avon’s integration and is raising its target synergies by US$100 million to between US$300 million and US$400 million, including new top line synergies to be achieved over four years at Natura &Co Latam.
Natura &Co’s consolidated net revenue reached R$7.5 billion, up 1.9% vs the same quarter last year. The growth was driven by a strong increase in sales by the Natura brand in Brazil and in Hispanic Latin America and continued double-digit growth at Aesop.
Digital sales soar
Amid the Covid-19 pandemic, digital social selling and e-commerce sales grew exponentially as consumers adapted to social distancing and lockdown measures by mid-March. The group’s e-commerce sales grew by nearly 250% in recent weeks compared to the same period last year. During the lockdown, e-commerce grew by 150% at Natura and Avon combined, 300% at The Body Shop and over 500% at Aesop.
"We entered 2020 with excitement and a solid plan around the integration of Avon into Natura &Co. We had no idea that so quickly our focus and resolve would be tested by a global pandemic as never before seen,” said Roberto Marques, Executive Chairman and Group CEO of Natura &Co.
“First, we prioritized our people, offering job security, support to our network and safety conditions to our frontline associates. Second, we quickly moved to increase our production of essential items, donating a significant amount to local communities while supporting the important cause of domestic violence. Finally, to keep our business running, we increased training and capabilities with our digital selling tools so that everyone could access our products,” he added.