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Natura &Co Latam rebounds from last quarter and achieves 15% profitability in Q1-25

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Natura &Co (NUACF) reported strong Q1-25 results, with Latin American revenue growing 12.2% year-over-year in constant currency to R$5.3 billion. The company achieved a recurring EBITDA margin of 15% (13.9% adjusted), expanding 50 bps year-over-year and significantly improving from 9.6% last quarter. Gross margin reached 67.1% in Latin America, driven by successful integration of Natura and Avon brands. The Natura brand showed exceptional performance with 8.2% revenue growth in Brazil and 38.4% in Hispanic countries. Digital sales increased by 34.7%, while retail expansion continued with 149 owned stores and 869 franchises. The company's net loss decreased by 84% to R$151 million compared to Q1-24. Notable ESG achievements include the Celaya plant becoming fully solar-powered and recognition as one of the World's Most Ethical Companies.

Natura &Co (NUACF) ha riportato risultati solidi nel primo trimestre 2025, con un incremento del fatturato in America Latina del 12,2% su base annua a valuta costante, raggiungendo 5,3 miliardi di R$. L'azienda ha raggiunto un margine EBITDA ricorrente del 15% (13,9% rettificato), in crescita di 50 punti base rispetto all'anno precedente e con un netto miglioramento rispetto al 9,6% del trimestre precedente. Il margine lordo ha raggiunto il 67,1% in America Latina, grazie all'integrazione efficace dei marchi Natura e Avon. Il marchio Natura ha mostrato una performance eccezionale con una crescita del fatturato dell'8,2% in Brasile e del 38,4% nei paesi ispanici. Le vendite digitali sono aumentate del 34,7%, mentre l'espansione retail è proseguita con 149 negozi di proprietà e 869 franchising. La perdita netta dell'azienda è diminuita dell'84%, attestandosi a 151 milioni di R$ rispetto al primo trimestre 2024. Tra i risultati ESG di rilievo, lo stabilimento di Celaya è diventato completamente alimentato da energia solare e l'azienda è stata riconosciuta come una delle società più etiche al mondo.
Natura &Co (NUACF) reportó sólidos resultados en el primer trimestre de 2025, con un crecimiento de los ingresos en América Latina del 12,2% interanual en moneda constante, alcanzando 5.300 millones de reales. La compañía logró un margen EBITDA recurrente del 15% (13,9% ajustado), expandiéndose 50 puntos básicos respecto al año anterior y mejorando significativamente desde el 9,6% del trimestre pasado. El margen bruto alcanzó el 67,1% en América Latina, impulsado por la exitosa integración de las marcas Natura y Avon. La marca Natura mostró un desempeño excepcional con un crecimiento de ingresos del 8,2% en Brasil y del 38,4% en países hispanos. Las ventas digitales aumentaron un 34,7%, mientras que la expansión minorista continuó con 149 tiendas propias y 869 franquicias. La pérdida neta de la empresa disminuyó un 84%, situándose en 151 millones de reales en comparación con el primer trimestre de 2024. Entre los logros ESG destacados, la planta de Celaya se convirtió en totalmente solar y la empresa fue reconocida como una de las compañías más éticas del mundo.
Natura &Co (NUACF)는 2025년 1분기에 강력한 실적을 보고했으며, 라틴 아메리카 매출이 전년 대비 12.2% 증가하여 53억 헤알을 기록했습니다. 회사는 지속적 EBITDA 마진 15%(조정 후 13.9%)를 달성했으며, 전년 대비 50bp 확대되고 지난 분기 9.6%에서 크게 개선되었습니다. 라틴 아메리카의 총 마진은 67.1%에 도달했으며, 이는 Natura와 Avon 브랜드의 성공적인 통합 덕분입니다. Natura 브랜드는 브라질에서 8.2%, 히스패닉 국가에서 38.4% 매출 성장으로 뛰어난 성과를 보였습니다. 디지털 판매는 34.7% 증가했으며, 소유 매장은 149개, 프랜차이즈는 869개로 소매 확장이 계속되었습니다. 회사의 순손실은 2024년 1분기 대비 84% 감소한 1억 5,100만 헤알로 줄었습니다. 주요 ESG 성과로는 Celaya 공장이 완전 태양광 발전으로 전환되었고, 세계에서 가장 윤리적인 기업 중 하나로 인정받았습니다.
Natura &Co (NUACF) a publié de solides résultats pour le premier trimestre 2025, avec une croissance des revenus en Amérique latine de 12,2% en devises constantes, atteignant 5,3 milliards de R$. La société a réalisé une marge EBITDA récurrente de 15% (13,9% ajustée), en progression de 50 points de base sur un an et une nette amélioration par rapport à 9,6% le trimestre précédent. La marge brute a atteint 67,1% en Amérique latine, portée par l’intégration réussie des marques Natura et Avon. La marque Natura a affiché une performance exceptionnelle avec une croissance des revenus de 8,2% au Brésil et de 38,4% dans les pays hispaniques. Les ventes digitales ont augmenté de 34,7%, tandis que l’expansion du réseau de magasins s’est poursuivie avec 149 magasins détenus et 869 franchises. La perte nette de la société a diminué de 84%, s’établissant à 151 millions de R$ par rapport au premier trimestre 2024. Parmi les réalisations notables en matière d’ESG, l’usine de Celaya est désormais entièrement alimentée par l’énergie solaire et l’entreprise a été reconnue comme l’une des sociétés les plus éthiques au monde.
Natura &Co (NUACF) meldete starke Ergebnisse für das erste Quartal 2025, mit einem Umsatzwachstum in Lateinamerika von 12,2% im Jahresvergleich bei konstanten Wechselkursen auf 5,3 Milliarden R$. Das Unternehmen erzielte eine wiederkehrende EBITDA-Marge von 15% (bereinigt 13,9%), was einer Steigerung von 50 Basispunkten gegenüber dem Vorjahr entspricht und eine deutliche Verbesserung gegenüber 9,6% im Vorquartal darstellt. Die Bruttomarge erreichte in Lateinamerika 67,1%, angetrieben durch die erfolgreiche Integration der Marken Natura und Avon. Die Marke Natura zeigte eine außergewöhnliche Leistung mit einem Umsatzwachstum von 8,2% in Brasilien und 38,4% in den hispanischen Ländern. Der digitale Verkauf stieg um 34,7%, während die Einzelhandelserweiterung mit 149 eigenen Geschäften und 869 Franchise-Filialen fortgesetzt wurde. Der Nettoverlust des Unternehmens verringerte sich um 84% auf 151 Millionen R$ im Vergleich zum ersten Quartal 2024. Bemerkenswerte ESG-Erfolge umfassen, dass das Werk in Celaya vollständig solarbetrieben wurde und das Unternehmen als eines der ethischsten Unternehmen der Welt anerkannt wurde.
Positive
  • Recurring EBITDA margin improved to 15%, up 50 bps YoY and significantly higher than last quarter's 9.6%
  • Revenue growth of 12.2% in Latin America (constant currency)
  • Strong gross margin of 67.1% in Latin America
  • Digital sales increased 34.7% YoY
  • Net loss decreased 84% YoY to R$151 million
  • Retail expansion with 34 new owned stores and 88 new franchises YoY
Negative
  • Company still operating at a net loss of R$151 million
  • Transformation costs expected to continue through 2025
  • Wave 2 integration in Mexico and Argentina still pending completion
  • In the period, Natura &Co Latam recorded a recurring EBITDA margin of 15% (13.9% adjusted for non-operating impacts), expanding +50 bps year-on-year and exceeding the 9.6% result reported last quarter.
  • Gross margin reached 67.1% in Latin America, driven by solid year-on-year expansion in the countries where the Natura and Avon brands have already been integrated (Wave 2)
  • Net revenue of the Latin American business unit grew 12.2% in CC compared to Q1-24, sustained by the strong performance of the Natura brand

SÃO PAULO, May 12, 2025 /PRNewswire/ -- Natura &Co (B3: NTCO3), the leader in beauty and personal care in Latin America1, ended the first quarter of 2025 with revenues of R$5.3 billion in the region, up 12.2% compared to Q1-24 in constant currency (CC) (+4.1% excluding Argentina). Total revenue was R$6.7 billion, including R$1.4 billion from Avon Internacional2.

In the Latin American operation, the recurring EBITDA margin reached 15% (13.9% adjusted for non-operational impacts), exceeding the result of 9.6% reported in the last quarter and growing +50 bps year-on-year. The profitability improvement reflects the expansion in gross margin, which reached 67.1% in Latin America, driven by expansion in the countries where the integration of the Natura and Avon businesses has already been implemented, the so-called Wave 2. Greater efficiency in the management of general and administrative expenses also contributed to the evolution of the margin.

The Q1-25 results were driven by the Natura brand performance, which recorded a revenue increase of 8.2% in Brazil and 38.4% in the Hispanic countries (mid-teens excluding Argentina). In Brazil, robust retail growth was driven by strong same-store sales performance and a consistent pace of new store openings, reaching 149 owned stores (+34 compared to Q1-24) and 869 franchises (+88 compared to Q1-24). In digital, sales increased by 34.7% year-on-year, with the brand's share of voice on social networks growing, leading the main platforms in the beauty category.

"Latin America's performance this quarter contributes to our ultimate goal of achieving year-on-year expansion of the recurring EBITDA margin to by the end of 2025. Efficiencies from Wave 2 will continue to be partially reinvested in marketing and other strategic fronts, with some volatility between quarters, but on a more balanced basis compared to previous years, given that investments are better spread over the periods. In addition, the implementation of Wave 2 in Mexico and Argentina is expected to be completed in 2025. As a result, the transformation cost cycle will end this year and should not exceed the total recorded in 2024," commented Natura's CEO, João Paulo Ferreira.

From an ESG perspective, one of the highlights of the period was that the Celaya plant in Mexico became the first Natura facility in Latin America to be fully powered by certified solar energy. The initiative is part of the company's decarbonization strategy and has already reduced carbon emissions by approximately 1,000 tons. The plant is expected to reduce its annual emissions by 83%, aligning efficiency gains with climate goals."As we move forward on the journey of simplifying our structure and focusing on operations in Latin America, our commitment to the ESG agenda remains unwavering, and it generates a competitive advantage to the business, reflected on continuous progress in our social and environmental goals," said the CEO.

This year, Natura was recognized for the 14th time as one of the World's Most Ethical Companies by the Ethisphere Institute. It also received, among other awards, the "Corporate Sustainability Bond of the Year" from Environmental Finance, highlighting its leadership in sustainable finance.

Natura &Co
Natura &Co's net loss in Q1-25 decreased by 84% compared to the same period in 2024, reaching R$151 million, against R$935 million in the previous year.

The company's simplification journey, which began three years ago, has taken an important step forward which reinforces its focus on Latin America. In March, the incorporation of Natura &Co Holding by Natura Cosméticos was announced, a proposal approved by shareholders on April 25.

The full results report and financial statements can be accessed at https://ri.naturaeco.com/en/.

Q1-25 Earnings Conference Call on 5/12 at 8:00 AM (New York time) / 1:00 PM (London time) at
https://tenmeetings.com.br/ten-events/#/webinar?evento=ConferenciadeResultados1T25-NATURA_262

About Natura &Co
Natura &Co is a purpose-driven group that brings together Natura and Avon brands, connecting with consumers through a network of 4.8 million Beauty Consultants and Representatives, over 1,000 stores, and more than 19,000 employees. The group operates through two business units: Natura &Co Latin America, which oversees the global management of Natura and Avon across Latin America, and Avon International, which leads the brand's operations in Asia, Europe, Oceania, and Africa.

1 Source: Euromonitor International; umbrella brand Natura , Beauty and Personal Care 2025ed; retail value sales (RSP), 2024 data
2 In 2024, Avon International was accounted for as discontinued operations until it was reconsolidated on December 4.

Cision View original content:https://www.prnewswire.com/news-releases/natura-co-latam-rebounds-from-last-quarter-and-achieves-15-profitability-in-q1-25-302453070.html

SOURCE Natura &Co

FAQ

What was Natura &Co's (NUACF) EBITDA margin in Q1 2025?

Natura &Co achieved a recurring EBITDA margin of 15% (13.9% adjusted for non-operating impacts) in Q1 2025, representing a 50 basis points increase year-over-year.

How much did Natura &Co's revenue grow in Latin America during Q1 2025?

Natura &Co's Latin American revenue grew 12.2% in constant currency compared to Q1 2024, reaching R$5.3 billion.

What was Natura &Co's (NUACF) net loss in Q1 2025?

Natura &Co reported a net loss of R$151 million in Q1 2025, an 84% improvement from the R$935 million loss in Q1 2024.

How many retail stores does Natura operate in Brazil?

As of Q1 2025, Natura operates 149 owned stores and 869 franchises in Brazil, adding 34 owned stores and 88 franchises compared to Q1 2024.

What was Natura's digital sales growth in Q1 2025?

Natura's digital sales increased by 34.7% year-over-year in Q1 2025, with the brand leading in share of voice on social networks in the beauty category.
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