08.13.24
Natura &Co reported its financial results for the second quarter of 2024.
The report showed improved revenue trends while margins continued to expand, especially in Hispanic countries where the second wave of the integration of Natura and Avon in the region was implemented.
However, this positive performance continued to be impacted by the ongoing sales deleverage at Avon International, which encompasses all global markets except Latin America.
Natura &Co also announced its support for the voluntary financial restructuring procedure of its non-operating subsidiary Avon Products, Inc. (API) initiated in the U.S. through a Chapter 11 process to address pre-existing debts and liabilities.
The proceedings are restricted to API and no impacts are expected on Avon brand operations outside the U.S., which are not part of the proceedings.
Fábio Barbosa, CEO of Natura &Co Group, commented,
"Natura &Co's revenue was back in positive territory, driven by strong results in Q2-24 at Natura &Co Latam, partially offset by still challenging figures at Avon International, while margin continued to expand. This is an important sign that our strategy is effective.”
Consolidated net revenue was up 5.7% year-over-year (YoY) to $1.3 billion. This was driven by Natura &Co's operation in Latin America, whose revenues grew 10.0% YoY, offset by Avon International, whose revenues fell 8.4% YoY.
This improvement was mainly driven by the performance of both brands in Brazil. While Natura recorded another quarter of strong growth (+14.8% YoY), Avon posted a significant recovery compared to the previous quarter's figures, from -11.3% in Q1 2024 to -0.8% in Q2 2024.
Barbosa added,
“We also started to see a better trend in top-line dynamics, reflecting not only a strong performance by the Natura brand with Brazil and Mexico accelerating vs. Q1-24, but also the significant recovery by Avon CFT in Brazil. The integration of the brands in Latin America continues to advance and has proven to be the main driver of our profitability, both in this and in recent quarters.”
Natura & Co Plans Possible Separation of Natura & Co Latam and Avon
The report showed improved revenue trends while margins continued to expand, especially in Hispanic countries where the second wave of the integration of Natura and Avon in the region was implemented.
However, this positive performance continued to be impacted by the ongoing sales deleverage at Avon International, which encompasses all global markets except Latin America.
Natura &Co also announced its support for the voluntary financial restructuring procedure of its non-operating subsidiary Avon Products, Inc. (API) initiated in the U.S. through a Chapter 11 process to address pre-existing debts and liabilities.
The proceedings are restricted to API and no impacts are expected on Avon brand operations outside the U.S., which are not part of the proceedings.
Fábio Barbosa, CEO of Natura &Co Group, commented,
"Natura &Co's revenue was back in positive territory, driven by strong results in Q2-24 at Natura &Co Latam, partially offset by still challenging figures at Avon International, while margin continued to expand. This is an important sign that our strategy is effective.”
Consolidated net revenue was up 5.7% year-over-year (YoY) to $1.3 billion. This was driven by Natura &Co's operation in Latin America, whose revenues grew 10.0% YoY, offset by Avon International, whose revenues fell 8.4% YoY.
This improvement was mainly driven by the performance of both brands in Brazil. While Natura recorded another quarter of strong growth (+14.8% YoY), Avon posted a significant recovery compared to the previous quarter's figures, from -11.3% in Q1 2024 to -0.8% in Q2 2024.
Barbosa added,
“We also started to see a better trend in top-line dynamics, reflecting not only a strong performance by the Natura brand with Brazil and Mexico accelerating vs. Q1-24, but also the significant recovery by Avon CFT in Brazil. The integration of the brands in Latin America continues to advance and has proven to be the main driver of our profitability, both in this and in recent quarters.”
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