Brazilian beauty group Natura &Co, the owner of the Natura, The Body Shop, Aesop and Avon brands, reported "resilient results" in the fourth quarter of 2022, with sales growth in constant currency.
Natura &Co posted Q4 consolidated net revenue of BRL 10.39 billion, up 3% at constant currency (-10.8% in BRL), driven by double-digit constant currency (CC) growth at Natura &Co Latam and Aesop. Adjusted EBITDA margin was 10.5%, down 280 bps vs the same period last year, reflecting a challenging environment and continued investments. Net income was R$ (890.4) million and the Group ended the quarter with a solid cash position of R$ 6 billion.
“We continued to see very strong momentum at the Natura brand, especially in Brazil, and at Aesop, which successfully entered the China market in Q4, as well as a solid performance by Avon in the beauty category in Latin America, strengthening our confidence in the potential of the second wave of integration of our businesses in the region,” said Fabio Barbosa, Group CEO of Natura &Co.
Natura &Co said that a series of structural decisions have been made to improve the group’s results. Regarding Natura &Co Latam, the group is accelerating the integration of Natura and Avon in order to capture the full benefits of the combination. At Aesop, they are evaluating strategic options aiming to improve the company’s capital structure. At Avon International, they are further optimizing the brand’s geographic footprint in order to concentrate on profitable markets while reducing the cost structure. At The Body Shop, they are rightsizing the business, focusing on efficiencies.
“We are confident that the actions we are taking will position Natura &Co to return to growth. While we expect 2023 to be another challenging year, our priorities of focusing on cash generation and improving the company’s capital structure will allow us to invest in our priorities, building the path to unlock significant value. We expect a continuous improvement in revenues, as well as better adjusted profitability and cash generation, while continuing to invest in transformational actions,” added Fabio Barbosa.