#Brazil #Avon #Natura Co

Natura &Co Latam Reports Strong Profitability Growth in Q1 2025

In a remarkable turnaround, Natura &Co Latam concluded the first quarter of 2025 with a recurring EBITDA margin of 15%. This figure represents a notable increase from the previous quarter's 9.6%, and an upward shift of 50 basis points year-on-year. The company's gross margin in the Latin American region reached an impressive 67.1%, primarily attributed to the effective integration of Natura and Avon brands in various nations, which is referred to as Wave 2 integration.

The Brazilian market displayed a robust performance as well, achieving an 8.2% revenue increase, along with a staggering 38.4% growth in Hispanic countries (excluding Argentina). The Natura brand's strong retail performance contributed significantly, evidenced by an increase in same-store sales and an acceleration in new store openings, which now total 149 owned stores and 869 franchises. Additionally, digital sales skyrocketed, boasting a 34.7% rise compared to the same quarter last year.

CEO João Paulo Ferreira expressed optimism regarding the ongoing progress of Natura &Co, stating that these developments not only support short-term goals but pave the way for a sustainable and expanded profitability outlook by 2025. The efficiencies gained from the Wave 2 integrations are expected to be re-invested in marketing and strategic initiatives, allowing for greater operational consistency moving forward.

Another point of distinction for Natura during this quarter was its notable commitment to environmental sustainability, highlighted by the Celaya plant in Mexico becoming the first facility in Latin America to operate entirely on certified solar energy, marking a milestone in the company's decarbonization efforts. This initiative is projected to significantly reduce carbon emissions, showcasing Natura's alignment with its social and environmental governance objectives.

In recognition of its leadership in ethical business practices, Natura was honored for the 14th consecutive year as one of the World's Most Ethical Companies by the Ethisphere Institute. Furthermore, the organization received the