Brazilian international private care cosmetics group Natura &Co started 2025 with stable income development in Latin America, led by sturdy demand for the Natura model in Hispanic markets and regular efficiency in Brazil. The corporate cited “mid-teens” income development in Spanish-speaking international locations (excluding Argentina) and “excessive single-digit development” in Brazil, in response to its Q1 Earnings Launch.
This efficiency helped offset continued weak spot from the Avon model and the corporate’s Dwelling & Fashion class.
Progress within the area was supported by the continuing implementation of the corporate’s Wave 2 profitability program, which incorporates operational enhancements and margin optimization. Natura &Co Latam reported a recurring EBITDA margin of 15.0% in Q1, a marked enchancment from the prior quarter.
Administration stated the quarter “kicked off to the last word objective of attaining year-on-year growth of recurring EBITDA margin for the complete 12 months 2025,” emphasizing that the rollout of Wave 2 initiatives will likely be accomplished in Mexico and Argentina by the third quarter.
Avon restructuring accelerates
Avon Worldwide continued to underperform in Q1, contributing to margin stress and money outflows. In response, Natura &Co has fast-tracked restructuring efforts, together with “a major discount in headcount affecting round 1,100 workers or 25% of whole employees” and different cost-cutting actions, in response to the corporate’s Earnings Report.
These adjustments started in Q1, with the corporate anticipating the most important influence to happen between Q2 and Q3.
The corporate can be exploring “strategic alternatives for Avon Worldwide,” together with a potential divestment, because it realigns its concentrate on its core Latin American enterprise.
Company simplification and strategic focus
Natura &Co accomplished the merger of its holding construction into Natura Cosméticos in April, with shareholders approving the transfer as a part of its simplification technique. As of Q2, the administration workforce at Natura Cosméticos now leads the consolidated firm.
The corporate additionally reported a 55% year-over-year discount in company bills, attributed to the ultimate steps of the streamlining course of and a few short-term timing advantages. Natura &Co stated these measures are anticipated to be absolutely accomplished by the third quarter.
Sustainability and innovation stay core pillars
Regardless of ongoing restructuring, the corporate reaffirmed its long-term commitments to sustainability and product innovation. “We stay dedicated to our ESG agenda, which is a major pillar of our tradition,” administration said in Natura &Co’s Earnings Launch.
In Q1, the corporate was acknowledged by the Ethisphere Institute as one of many World’s Most Moral Firms and obtained Environmental Finance’s “Company Sustainability Bond of the Yr” award.
Investments in advertising and innovation are anticipated to proceed by means of the 12 months, with Natura &Co highlighting plans for “greater and bolder improvements” and a “extra diversified channel” technique, in response to administration. On the conclusion of its Earnings Launch, the corporate emphasised that reinvestments can be paced extra evenly throughout quarters in 2025 to assist long-term development.
