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Natura's Strategic Success: Corporate Streamlining and Profit Growth

Natura has reached a significant milestone in its recent efforts to streamline operations, resulting in an impressive net income of nearly R$ 1 billion for the year ending 2025. This development follows the successful divestments of Avon International and Avon Russia, marking the completion of a strategic corporate restructuring that focused on enhancing profitability and market position.

Key Developments

In recent reports, Natura highlighted its robust performance despite challenging market conditions. With the completion of the brand unification between Natura and Avon in Mexico and Argentina, the company has effectively concluded major transformation costs, noting a decrease from the prior year. This alignment not only simplifies operations but also strengthens Natura's footprint in Latin America, where it is now poised to leverage its competitive advantages.

During the fourth quarter of 2025, Natura revealed a remarkable recurring EBITDA margin of 14.6%, reflecting a 130 basis point increase compared to the previous year. This growth can be attributed to various cost management strategies and an enhanced focus on efficiency in managing general and administrative expenses.

Despite facing macroeconomic challenges in Brazil, such as fluctuating consumer behavior impacting Beauty Consultant activities, Natura demonstrated resilience. The company reported a significant rise in digital channel sales, which surged by 24.5% during Q4, contributing to a diversified revenue stream that now includes 22.5% from non-traditional selling channels.

Financial Performance

Natura's overall net revenue reached R$ 6.2 billion in Q4-25, a solid result considering the turbulent economic landscape. The successful integration of the Natura and Avon brands has played a crucial role in driving profitability in Hispanic America, where EBITDA margins improved significantly to 7.5% in the same quarter.

In total, Natura’s net income for 2025 stood at R$ 974 million, adjusting for a non-recurring, non-cash provision related to past divestitures. This outcome underscores Natura's ongoing commitment to its core business operations and growth potential. CEO João Paulo Ferreira stated, "We have delivered on our commitment to expanding annual profitability, marking the fourth consecutive year of margin improvement."

Sustainability Initiatives

Natura has coupled its financial strategies with a commitment to sustainability. In 2025, the company successfully reduced its absolute carbon emissions by 10.2% as part of its climate transition plan. Initiatives such as adopting biomethane at their Cajamar facility contributed significantly to this reduction, showcasing an impressive 400% productivity gain in operational cycles while preventing approximately 1,300 tons of carbon emissions.

Moreover, Natura achieved a target of 29% post-consumer recycled content in its packaging, exceeding expectations ahead of schedule. The company earned an 'A' rating in the CDP Climate Change assessment, solidifying its position as a leader in sustainable beauty industry practices within Latin America.

Looking Ahead

As Natura continues to embrace its streamlined operations, the company is well-equipped to enter a new cycle of growth and innovation. The upcoming relaunch of the Avon brand in Brazil and Mexico is set to further enhance its market presence. The leadership remains optimistic about expanding their reach and strengthening their position in the beauty and personal care market in Latin America.

With a simpler, more agile corporate structure, Natura is aiming to capitalize on new opportunities and navigate future challenges while prioritizing sustainability and customer satisfaction. The upcoming earnings conference call on March 17, 2026, will provide further insights into Natura’s strategies and performance metrics moving forward.

Overall, Natura's proactive approach to corporate streamlining, profitability enhancement, and sustainability initiatives has set the stage for a promising future.