Natura &Co posted a net profit of 35 million reais (BRL) for the second quarter of 2026, an 82% drop compared to the 196 million recorded during the same period in 2025. This result fell short of Citi’s forecast, which had projected BRL 137 million.

Consolidated net revenue reached BRL 5.17 billion in the April–June period, representing a 9.1% year-on-year decline, but broadly in line with analysts’ expectations of BRL 5.15 billion. Revenue fell across the company’s three main business segments during the quarter: Natura (-8.2%), Avon (-11.0%), and Casa & Estilo (-27.6%). In contrast, the Others segment posted a 79.3% increase.

EBITDA (earnings before interest, taxes, depreciation, and amortization) totaled BRL 620 million, down 5.9% year on year, while the EBITDA margin stood at 12.0%, exceeding market expectations.

Revenue in the Brazilian market declined 14.8% year on year to BRL 3.07 billion. The Natura brand posted a 14.5% decrease, while Avon reported a 22.5% drop in sales. According to the company, the weaker performance in Brazil was mainly attributable to product stockouts, temporary tax timing effects, and a softer consumer environment.

In contrast, Spanish-speaking Latin America delivered growth and partially offset the pressure from Brazil. Revenue in the region reached BRL 2.1 billion, up 0.7% in nominal terms and 7.2% at constant exchange rates. Natura and Avon recorded revenue growth of 5.0% and 1.4%, respectively. Regional EBITDA rose to BRL 160 million, representing a 92.7% year-on-year increase, while the EBITDA margin expanded to 7.6%, up 360 basis points from the prior-year period. The company attributed the stronger profitability primarily to lower selling, general and administrative expenses following the implementation of a new operating model in the region.

“Q2-26 results revealed greater-than-expected operational challenges in Brazil, which were amplified by the macroeconomic environment. However, efficiencies from the new operating model, combined with a healthy gross margin, kept the region’s profitability in the mid-teens – or high teens when excluding the temporary impact of indirect tax changes in the State of São Paulo. Conversely, performance improved across both revenue and profitability in the Hispanic markets. On a consolidated basis, operational challenges in Brazil weighed more heavily due to its significant share of the overall business,” commented the Group’s management team.