Natura &Co Reports Strong Q4

Natura &Co reported another strong performance in the fourth quarter of 2019, with revenue growth in all three of its brands—Natura, The Body Shop and Aesop.
 
The fourth-quarter performance marks another transformational year for Natura &Co as it announced the acquisition of Avon Products Inc. in May 2019, creating the world's fourth-largest pure play beauty group and a leader in the Direct-to-Consumer space.
 
Natura &Co's consolidated net revenue reached $1 billion in Q4, up 7.3% on a reported basis and up 6.1% at constant currency. Net income, at $3.1 million, was impacted by Avon-related acquisition costs and taxes related to the creation of the Natura &Co Holding company. 
 
In the full-year, consolidated net revenue grew 7.8% on a reported basis and 7.0% at constant currency to $3.1 billion.
 
“2019 was another year of profitable growth and transformation for Natura &Co, as we continued to make significant progress in building a multi-brand, multi-channel, purpose-driven group. Our results continue to demonstrate our ability to serve an ever-increasing number of customers across price points and distribution channels,” commented Roberto Marques, executive chairman of Natura &Co. “Natura posted further growth while evolving its Relationship Selling model and multichannel strategy; The Body Shop continued to successfully implement its ongoing transformation plan and expanded margin; and Aesop's business picked up strongly in the fourth quarter, resulting in another year of solid double-digit growth.”
 
Brand Performance
 
The Natura brand's adjusted net revenue in Brazil was up 3.0% in Q4, a very strong performance as it came against a very challenging comparable base. Productivity per consultant rose for the 13th consecutive quarter. Natura's digital platform now has over 900,000 users in Brazil and online sales grew in double-digits. Latam also saw growth of 10.6% in net revenue and a stronger 28.9% in constant currency. Argentina posted a strong performance despite a challenging market environment, and Mexico and Colombia also delivered growth.
 
Net revenue for The Body Shop was up 6.7% in Q4. Sales grew 5.4% in the UK, underscoring the brand's attractiveness in its biggest market.
 
Revenue for Aesop increased 25.78% and 13.4% at constant currency. Like-for-like retail sales growth was 7% in the quarter, and Aesop opened seven new signature stores in the period, bringing the total to 247.