Natura Third Quarter Revenue Falls 3.8 Percent as Brazil Slows; Avon International Write-Off Recorded

SAO PAULO, Brazil -- November 10, 2025

Natura reported third-quarter consolidated net revenue of 5.194 billion reais, down 3.8 percent from a year earlier in constant currency, reflecting a slowdown in the Brazilian beauty market and temporary operational effects from the integration of Avon in Argentina and Mexico. Brazil, Argentina and Mexico together represent about 85 percent of the business, and lower expense dilution cut the recurring EBITDA margin in Latin America to 11.7 percent, down 360 basis points.

The company said it completed the integration of Natura and Avon across Latin America during the quarter, completed the sale of Avon operations in Central America and the Dominican Republic, and agreed to sell Avon International, excluding Russia, with closing expected in the first quarter of 2026. It continues to evaluate strategic alternatives for the Russian operation. The agreed Avon International sale led to a non-recurring, non-cash write-off of about 1.7 billion reais on the balance sheet, with no impact on operations.

"We are confident that profitability will improve in the next quarter and remain committed to expanding our EBITDA margin for the full year 2025," said Chief Executive Joao Paulo Ferreira, adding that Mexico stabilized toward the end of the quarter and Argentina is showing signs of recovery. Natura opened 89 new stores in Brazil and 32 in Hispanic America in the period, and its Emana Pay fintech reached 36 percent of the consultant base.