Natura Earns 445 Million Reais in Latin America in Second Quarter; Classifies Avon International as Held for Sale

SAO PAULO, Brazil -- August 12, 2025

Natura reported second-quarter 2025 net income from continuing operations of 445 million reais in Latin America. Including Avon's operations outside Latin America, which are now classified as assets held for sale, net income was 195 million reais. Net revenue was 5.7 billion reais, down 1.7 percent in reais but up 5.5 percent in constant currency, or 2.0 percent excluding Argentina.

The Natura brand grew 10.3 percent in Brazil and 17.8 percent in Spanish-speaking markets, while the Avon brand fell 12.9 percent in Brazil. Results were also affected by the integration of the Natura and Avon brands in the region, known as Wave 2, which was completed in Mexico in May and rolled out in Argentina in July and is expected to be finished by year-end. The recurring EBITDA margin in Latin America was 14.7 percent, up 10 basis points, and Latin American operations generated 408 million reais of cash in the first half.

Natura said Avon International and Avon's business in Central America and the Dominican Republic were reclassified as held for sale because of the high probability that they will be sold within 12 months, as it continues to explore a spin-off or sale of Avon outside Latin America. Chief Executive Joao Paulo Ferreira said the company remains confident in delivering annual profitability growth despite slowing consumption.