Natura Cosmetic Stock Price, News & Analysis

Natura &Co Holding S.A. (NUACF) is a consumer non-durables company in the household and personal care industry. According to available information, it operates as an investment holding company that develops, manufactures, distributes and sells cosmetics, fragrances and toiletries, with a strong focus on Latin America. The group is associated with well-known beauty and personal care brands such as Natura and Avon, and has historically included The Body Shop and Aesop in its portfolio. Natura &Co is headquartered in São Paulo, Brazil and its shares trade in Brazil under the symbol NTCO3, while NUACF represents the company in over-the-counter trading.

Business model and operations

Natura &Co describes itself as a global, purpose-driven group uniting the Natura and Avon brands. The group connects with more than 200 million clients worldwide through a large network of beauty consultants and representatives, as well as a network of owned stores and franchises. Its activities span the development and sale of beauty and personal care products, including cosmetics, fragrances and toiletries, and the operation of multi-channel distribution models that include direct selling, retail stores and digital channels, as described in its public communications.

The company has emphasized a strategy of simplifying its corporate structure and focusing on Latin American operations. Natura &Co Latam, which brings together Natura and Avon in the region, has been a central driver of results in recent periods. Publicly released financial updates highlight an ongoing integration project often referred to as “Wave 2”, which combines Natura and Avon businesses in Latin American markets to improve productivity, gross margin and profitability. This integration has been rolled out in Brazil and several Hispanic Latin American countries, with further implementation planned in markets such as Mexico and Argentina.

Corporate transformation and portfolio changes

Natura &Co has undergone a significant transformation of its brand portfolio. The group completed the sale of Aesop to L'Oréal, a transaction that Natura &Co states was intended to strengthen and deleverage its balance sheet and allow greater focus on strategic priorities, particularly the integration of Natura and Avon in Latin America and the optimization of Avon International. The company also announced an agreement to sell The Body Shop to private equity group Aurelius, positioning this divestment as another step in simplifying operations and concentrating on core relationship selling in Latin America and the Avon International footprint.

These portfolio moves, alongside a broader simplification agenda, are described by Natura &Co as part of a multi‑year effort to prioritize profitability and cash conversion over pure revenue growth, reduce debt and streamline the holding structure. The company has also communicated that it delisted its American Depositary Receipts from the New York Stock Exchange and has studied a possible separation of Natura &Co Latam and Avon as part of its simplification strategy.

Financial profile and profitability focus

In its public results releases, Natura &Co highlights recurring improvements in gross margin and EBITDA margin across recent years and quarters. The group attributes these gains to factors such as price management, richer product and country mix, integration synergies from Wave 2, and cost efficiencies in general and administrative expenses, logistics and other operating areas. Natura &Co Latam has reported margin expansion supported by strong performance of the Natura brand in Brazil and Hispanic Latin America, while Avon International has focused on margin recovery through portfolio optimization and transformation savings.

The company has also emphasized deleveraging and balance sheet strengthening, pointing to proceeds from the sale of Aesop and the announced sale of The Body Shop as key contributors to net cash improvement and debt reduction. Public communications refer to a shift toward a leaner holding structure, with business units operating with more autonomy and capital allocation focused on key growth markets and projects.

Geographic and channel reach

According to Natura &Co’s own descriptions, the group has a global reach, connecting with hundreds of millions of clients worldwide through millions of consultants and representatives and a large base of stores and franchises. Latin America is a core region, with Brazil identified as a major driver of growth for the Natura brand and a key market for the integration of Natura and Avon. The company also references operations in Hispanic Latin American markets and an international Avon footprint outside the region.

Natura &Co’s distribution model includes relationship selling via consultants and representatives, retail stores and franchises, and digital channels. The company reports that digitalization is progressing in Avon International and that digital tools and online sales represent a growing share of activity. In Brazil, Natura has reported growth in digital sales and in the performance of its retail network of owned and franchised stores.

Purpose, ESG and certifications

Natura &Co repeatedly describes itself as a purpose-driven group that seeks to generate positive economic, social and environmental impact. The company highlights a “triple bottom line” approach, with goals related to climate, communities and social indicators such as pay equity and living wages. Public statements note investments in agro‑extractive communities in the Amazon, progress on a climate transition plan, and the use of biogas‑powered trucks to reduce emissions.

The group has been recognized by external organizations, including being named multiple times as one of the World’s Most Ethical Companies by the Ethisphere Institute and receiving awards such as a “Corporate Sustainability Bond of the Year” from Environmental Finance. Natura &Co also reports that it operates as a certified B Corp at the group or brand level in various communications, and it has emphasized commitments such as providing a living wage for employees and working to close pay gaps between men and women.

Strategic priorities

Based on its public communications, Natura &Co’s key strategic priorities include:

• Integrating the Natura and Avon brands in Latin America through Wave 2 to improve productivity, cross‑selling and margins.
• Focusing on profitability, cash conversion and deleveraging rather than pure top‑line growth.
• Simplifying the corporate structure and operating as a leaner holding company with more autonomous business units.
• Optimizing the Avon International footprint and exploring structural alternatives, including a potential separation of Natura &Co Latam and Avon.
• Maintaining a strong emphasis on ESG, including decarbonization initiatives and support for communities in its value chain.

Status and listing context

Natura &Co has communicated that it delisted its ADRs from the New York Stock Exchange, while its shares continue to trade in Brazil under the symbol NTCO3. NUACF represents the company in the U.S. over‑the‑counter market. There is no indication in the provided information of a completed merger, liquidation or cessation of operations; instead, the company describes itself as being in a transformation phase focused on Latin America and on improving margins and cash generation.

Frequently asked questions (FAQ)

• What does Natura &Co Holding S.A. do?
  Natura &Co Holding S.A. is described as an investment holding company that develops, manufactures, distributes and sells cosmetics, fragrances and toiletries, primarily through the Natura and Avon brands. It focuses on beauty and personal care products and multi‑channel distribution, including direct selling and retail.
• Which brands are part of Natura &Co?
  Public communications identify Natura and Avon as the core brands in the group. Historically, The Body Shop and Aesop were also part of Natura &Co, but the company has announced the sale of Aesop to L'Oréal and an agreement to sell The Body Shop to Aurelius as part of its simplification strategy.
• Where is Natura &Co headquartered?
  According to available descriptions, Natura &Co is headquartered in São Paulo, Brazil, reflecting its strong roots and focus in Latin America.
• How does Natura &Co reach its customers?
  The company states that it connects with more than 200 million clients worldwide through millions of consultants and representatives, as well as a network of stores and franchises and digital channels. This reflects a relationship‑selling model combined with physical retail and online sales.
• What is Wave 2 in Natura &Co’s strategy?
  Wave 2 is the name used by Natura &Co for the integration of Natura and Avon in Latin America. The company reports that this integration aims to improve productivity, cross‑selling, product mix and gross margins, and has been rolled out in Brazil and several Hispanic Latin American markets.
• How is Natura &Co changing its portfolio?
  Natura &Co has announced and completed the sale of Aesop to L'Oréal and reached an agreement to sell The Body Shop to Aurelius. These transactions are described as steps to simplify the group, reduce debt and focus on core operations in Latin America and the Avon International business.
• What is Natura &Co’s approach to ESG and sustainability?
  Natura &Co presents itself as a purpose‑driven group with a triple bottom line focus. It highlights initiatives such as decarbonization projects, investments in Amazonian communities, pay equity efforts and living wage commitments, and has received external recognition for ethics and sustainable finance.
• Is Natura &Co still listed in the United States?
  The company has communicated that it delisted its ADRs from the New York Stock Exchange. However, NUACF continues to represent Natura &Co in the over‑the‑counter market, while its primary listing remains on the Brazilian exchange under NTCO3.
• What is the role of Latin America in Natura &Co’s business?
  Latin America, and Brazil in particular, is described as a central focus for Natura &Co. The Natura brand’s performance in Brazil and Hispanic Latin America, along with the integration of Natura and Avon in the region, has been highlighted as a key driver of revenue growth and margin expansion.
• How does Natura &Co describe its strategic priorities?
  In its public communications, Natura &Co emphasizes priorities such as improving profitability and cash conversion, deleveraging the balance sheet, integrating Natura and Avon in Latin America, optimizing Avon International, simplifying the holding structure, and maintaining a strong ESG agenda.