#Brazil #São Paulo #Avon #Natura

Natura's Strong Financial Performance in Q2 2025

In the second quarter of 2025, Brazilian multinational Natura continued to demonstrate its resilience and strength in the beauty and personal care industry, reporting a remarkable net income of BRL 445 million across Latin America. This impressive figure showcases the successful integration of the Natura and Avon brands, as well as the positive outcome of the company's corporate streamlining efforts.

João Paulo Ferreira, the CEO of Natura, expressed satisfaction with the financial results, noting that the company has made significant strides in enhancing its operational efficiency and solidifying its market leadership. The notable performance in Brazil, Natura's primary market, especially stands out, with a revenue increase of 10.3%.

The Financial Breakdown: Revenue and Margins

Natura's net revenue for Q2 2025 was BRL 5.7 billion, reflecting a growth of 5.5% in constant currency, with Brazilian operations driving this success. However, the results were somewhat tempered by Avon’s performance, which faced a challenging landscape and reported a decline of 12.9% in Brazil. As the integration of Avon into Natura progresses, particularly with initiatives underway in Mexico and Argentina, the company remains optimistic about overcoming these headwinds.

The recurring EBITDA margin in Latin America was reported at 14.7%, a slight improvement from the previous year. This growth can be attributed to an enhanced gross margin, which reflects greater efficiency in the markets where the integration with Avon is already well advanced. Despite a temporary decline compared to the previous quarter due to integration implementation costs, the overall trajectory remains positive.

Sustainability and Future Outlook

In addition to impressive financial metrics, Natura is also committed to its sustainability agenda. The company has received an 'A' rating for both climate and supplier engagement from CDP, positioning it among the leaders in the sector regarding environmental accountability. Furthermore, Natura’s Vision 2050 plan outlines ambitious sustainability goals aimed at making the business fully regenerative within a generation.

With cash generation also strong, Natura reported BRL 408 million during the first half of the year, despite seasonal trends typically leading to cash consumption.

As Natura looks to future growth, it remains focused on completing the integration of Avon operations and exploring strategic alternatives for its international assets. This restructuring enables the company to concentrate more closely on its core Latin American markets, enhancing its competitive position.

Conclusion

Natura's Q2 2025 earnings symbolically mark a pivotal moment for the company as it navigates through the complexities of integrating Avon and facing market challenges. The robust financial results, coupled with a strong commitment to sustainability, reflect Natura's progressive approach in a dynamic industry landscape. With confidence in its operational strengths and strategic vision, Natura is well-poised to solidify its leadership and achieve profitability growth in the year ahead, setting a strong foundation for future initiatives and expansions.

For further details, you can explore Natura's financial reports at Natura Investor Relations.