Natura
November 14, 2023
SÃO PAULO, November 14, 2023 --
Natura &Co Holding reported third-quarter 2023 consolidated net revenue of 7.5 billion reais, down 0.7 percent at constant currency and 10.5 percent in reais. Gross margin rose 310 basis points to 65.3 percent and adjusted EBITDA margin rose 190 basis points to 10 percent. Reported net income jumped to 7 billion reais from a loss of 560 million reais, driven by the capital gain on the sale of Aesop; underlying net income was 745 million reais.
Natura &Co Latam sales rose 2.5 percent in constant currency, led by 18.6 percent growth at the Natura brand, while the Avon brand's beauty sales fell 11.6 percent and its Home and Style line dropped sharply amid portfolio cuts and the Wave 2 integration of Natura and Avon in Brazil. Avon International revenue fell 2.3 percent in constant currency with adjusted EBITDA margin up 440 basis points to 8 percent, and The Body Shop's revenue fell 13.2 percent.
Using Aesop proceeds, the group prepaid more than half of its debt and accrued interest, about 1.6 billion dollars, ending the quarter with 6.8 billion reais in cash and a net cash position. Group Chief Executive Fabio Barbosa said the company would keep the market informed on The Body Shop sale process.