Natura Group Fourth Quarter Revenue Rises 24 Percent and Profit Triples

Natura and Co reported fourth-quarter consolidated net revenue of 12 billion Brazilian reais, up 24.3 percent in reais and 6.4 percent at constant currency. Net income rose 200.7 percent to 177.4 million reais. Adjusted EBITDA rose 12.3 percent to 1.5 billion reais. The group includes the Natura brand, Avon, The Body Shop, and Aesop.

Group digital sales rose 79 percent, and every brand posted its highest e-commerce sales. Avon e-brochure revenue rose nearly 90 percent from the fourth quarter of 2019. In Latin America, the Natura brand net revenue rose 24.7 percent in reais, and the Avon brand rose 16.2 percent. Avon International net revenue rose 12.1 percent in reais, including a third straight quarter of market-share gains in the United Kingdom on a constant-currency basis.

One year after Avon joined the group, integration synergies were 25.5 million dollars in the quarter and 73.3 million dollars for the full year, ahead of the company estimate. A new Avon commercial model is being rolled out. Full-year 2020 group net revenue was 36.9 billion reais.

Executive chairman and group chief executive Roberto Marques said a fast shift to digital social selling and e-commerce offset store closures and let the group outperform the cosmetics, fragrance, and toiletries market. The group also said it became a certified B Corporation, which it called the largest such company, and that it completed a 1 billion dollar capital raise that left net debt at 0.97 times EBITDA.