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Natura's Third Quarter 2026 Financial Report

Natura, the renowned Brazilian beauty and personal care company, has recently released its financial results for the third quarter of 2026 (3Q26). The report highlights a consolidated net revenue of BRL 5 billion, which reflects a 3% decline in nominal terms and a 5.9% reduction in constant currency. Despite these challenges, the company showcased resilience with a net income of BRL 49 million, reversing a substantial loss of BRL 119 million from the previous year’s same period.

Key Financial Highlights

During this quarter, Natura experienced specific challenges within its operational landscape in Brazil that contributed to its revenue performance. Notably, the company had to contend with product unavailability and decreased productivity among its beauty consultants. The revenue from Brazil dropped by 9% but showed improvement compared to previous quarters, indicating a gradual recovery trend. The company's EBITDA stood at BRL 460 million with a margin of 9.1%. Importantly, when excluding non-operating impacts, this number would have surged to BRL 636 million, leading to a robust margin of 12.6%.

In terms of cash flow, Natura generated an impressive BRL 268 million in 3Q26, which, paired with inflows from a Financial Investment Fund (FIDC), led to a reduction in net debt to BRL 3.4 billion. This notable financial maneuver resulted in a decrease in leverage, calculated at 1.83x, down from 2.06x in the second quarter of 2026, underscoring the effectiveness of the firm's cash generation capabilities despite ongoing operational hurdles.

Leadership Insights

Ale Carlucci, who assumed the role of CEO on October 1, 2026, provided a forward-looking perspective during the earnings call with shareholders. In his address, he acknowledged the necessity for a comprehensive assessment of the company's current strategies. Carlucci emphasized that strengthening foundational business levers will be crucial as opposed to seeking superficial, short-term fixes.

Carlucci laid out three pivotal areas for improvement that will drive Natura's path to sustainable growth:
1. Enhancing Service Levels: Addressing supply chain bottlenecks and eliminating product shortages.
2. Revamping Relationship Selling: Modernizing the consultant value proposition and integrating advanced technology to boost performance.
3. Brand Resilience: Reinforcing Natura's position as a forward-thinking brand through impactful innovations.

Challenges Ahead

Carlucci was candid about the need for time to resolve internal bottlenecks, indicating that while the transition may seem slow, it is essential for unlocking Natura's full potential. He articulated a vision for harnessing the company's asset-light model to aid in navigating these operational challenges while ensuring strong cash flow generation continues. The CEO elaborated that sound cash management and a disciplined approach to capital allocation will remain central to the company’s strategic roadmap.

About Natura

Founded in 1969, Natura has positioned itself as a leading multinational company in the beauty and personal care sector across Latin America. For 12 consecutive years, it has been recognized as Brazil's most reputable company and an ESG leader according to the Merco ranking. With a commitment to using bioactive ingredients from Brazil's socio-biodiversity, Natura collaborates closely with Amazonian extractive communities, benefiting numerous families and contributing to the conservation of 2.2 million hectares of forested land. Its products reach consumers through an extensive network comprising over 2.8 million consultants, e-commerce platforms, and retail outlets across the region.

For more insights, visit Natura's official website or follow them on social media through LinkedIn, Facebook, and Instagram.