Natura Fourth Quarter Revenue Rises 16 Percent in Constant Currency; Posts 439 Million Real Loss on Avon Costs

Natura &Co reported fourth-quarter 2024 consolidated net revenue of 7.7 billion reais, up 16.1 percent in constant currency and 63.1 percent in reais, driven by the Natura brand, which grew 21.1 percent in Brazil. Avon International was reconsolidated from December 2024 after the company reacquired it in the Avon Products Inc. Chapter 11 process.

Recurring EBITDA was 703 million reais with a 9.1 percent margin, down 70 basis points, as the company booked IT system investments as operating expenses and stepped up marketing. The company posted a net loss of 439 million reais, compared with a loss of 2.7 billion reais a year earlier, as 843 million reais of non-operational charges, mostly tied to its support of Avon Products' U.S. Chapter 11 case and Latin American integration costs, offset operating gains. Net debt fell to 2.4 billion reais.

Group Chief Executive Fabio Barbosa said Avon International continued to perform poorly and that the company is studying strategic alternatives for a possible separation or sale of the business while accelerating its restructuring. He also warned that Brazilian economic uncertainty and a possible beauty-market slowdown could pressure sales.