Natura & Co Posts Q2 Consolidated Net Revenue of $1.57 Billion

Natura & Co. posted Q2 consolidated net revenue of $1.57 billion, up 1.9% at constant currency driven by solid constant currency growth at Natura &Co Latam. 

Gross margin was 65.4%, up 430 bps vs Q2-22, and adjusted EBITDA margin was 9.7%, up 230 basis points versus the same period last year, reflecting improving margins at all three business units, Natura &Co Latam, Avon International and The Body Shop, as well as a 5.7% drop in corporate expenses. Net income was $147.51 million, slightly improving over last year's $154.57 million in the period.
 

“Natura & Co's second-quarter performance continued to show the improvement already observed in Q1, with low-single digit top line growth at constant currency and a significant improvement in adjusted EBITDA margin,” said Fabio Barbosa, group CEO of Natura &Co. “This was mainly driven by gross margin, benefiting from mix effects, partially offset by investments and inflation. Net income was still impacted by high financial expenses, which will be addressed upon closing of the sale of Aesop, expected to occur in Q3-23.”
 

The company kicked off Wave 2 of the Natura-Avon integration in Latin America, beginning with Peru and Colombia, with “compelling” results. In both markets, the company saw a meaningful acceleration of cross-selling between brands, and significant CFT productivity growth, resulting in greater prosperity for its beauty consultants. Entering the second half of 2023, the company’s focus turns to the roll out of Wave 2 in Brazil.
 

Natura &Co obtained approval from the Science Based Targets initiative (SBTi) for its ambitious plan to reduce absolute scopes 1, 2 and 3 greenhouse gas emissions by 42% by 2030 from a 2020 base year. Its target is in line with the 1.5°C trajectory required by the Paris Agreement.