Natura
August 12, 2021
Natura and Co reported second-quarter consolidated net revenue of 9.5 billion reais, up 36.2 percent in Brazilian reais and 31.7 percent in constant currency. Net income was 235 million reais. Adjusted EBITDA, excluding transformation costs, synergy costs, Avon acquisition effects, and other non-recurring items, rose 31.9 percent to 811.2 million reais, an 8.5 percent margin.
The group said all four businesses grew at a double-digit rate, including Avon in Latin America and Avon International. Digitally enabled sales, covering e-commerce, social selling, and relationship selling on the main apps, were 51 percent of revenue. Online sales were about four times the second quarter of 2019 and 10 percent of total sales. The payments platform Co Pay had more than 220,000 accounts in Brazil after a 50 percent increase in six months, with first-half payment volume near 2.0 billion reais.
Avon integration continued, with first-half synergies of 76.5 million dollars, in line with estimates. The group said representative satisfaction rose and that pilots of a new commercial model showed early positive results. Adjusted EBITDA margin was 30 basis points lower than a year earlier because the 2020 quarter had one-time cost cuts and government support. Excluding those effects, the company said the margin would have improved by 210 basis points.