Beauty Sales:

Key Personnel:

• Roberto Marques, executive chairman and group CEO
• Fábio Colletti Barbosa, CEO, Natura &Co
• João Paulo Brotto Gonçalves Ferreira, CEO, Natura &Co, Latin America
• Angela Cretu, CEO, Avon International
• David Philip Boynton, CEO, The Body Shop
• Michael O’Keeffe, CEO, Aesop

Major Products/Brands:

Aesop, Avon, Natura, The Body Shop.

New Products:

Aesop: The Exalted Eye Serum, Parsley Seed Anti-Oxidant Intense Serum, The Adventurer Roll-Up hand care collection.

Avon: Attraction, Far Away Beyond, Artistique Monet Collection fragrances, Ultra Lipsticks, Anew Power Serum, Anew Hydra Pro Vita-D.

Natura: Biome body and hair shampoo bars; Chronos Super Serum Wrinkle Reducer; Essencial Oud Vanilla and fragrance refill.

The Body Shop: White Musk fragrance; Breath, Boost and Sleep Wellness collection.

Financial Summary:

After a solid 2020 and a challenging 2021, Roberto Marques, Natura’s executive chairman and group CEO, expressed faith in Natura &Co’s resilience and affirmed that the company remained on track to deliver its 2022-2024 promises for sustainable, profitable growth. As of 2021, Natura &Co’s “beauty collective” operations spanned many countries, with more than 3,700 stores, 35,000 employees and 7.7 million representatives and consultants.

Natura &Co’s overall sales climbed 8.8%, with more than half of the group revenue coming from digitally-enabled sales. Direct selling accounted for 74.8% of sales, followed by retail (14.5%) and online (10.7%). The company’s goal is to have digitally-enabled sales account for at least 75% of its revenue.

Natura &Co’s Latin America unit saw sales grow 6.3% thanks to a 22% gain in Hispanic Latin America. The unit also posted solid gains in Argentina, Chile, Peru and Mexico, which became Natura’s biggest market trailing only Brazil. Its Natura brand reached its highest-ever recorded value (up 19% to $ 1.7 billion) in 2021 and was subsequently ranked as the world’s strongest brand in the cosmetics sector, according to Brand Finance.

As the company’s newly integrated Avon unit marked its 135th year in business, Natura &Co said Avon International is currently centered on eight key markets that include Italy, Philippines, Poland, Romania, South Africa, Turkey, the UK and China, with its commercial model rolling out to 12 markets. And although the product portfolio was cut by 20%, the increased adoption of digital brochures and online sales led the company to expect an acceleration of digitally-enabled sales in 2022 as it consolidates tools into one platform called Avon ON.

In 2021, The Body Shop continued its journey to become a more ethical business with an increased focus on global engagement in the “activist spirit” of its founder, Dame Anita Roddick. With a renewed product portfolio consisting of circularly minded products and packaging, the unit rolled out its “Activist Makers Workshop” concept to 104 stores in 2021, bringing the total to 121. A key feature is the refill station, where customers can reload recyclable aluminum bottles with hair care products, shower gels or hand washes. The Body Shop rolled out 410 refill stations in 34 countries by year-end 2021 and anticipates 400 more will be installed in 2022.

Sales in the Aesop unit surged more than 25.1% due to demand in North America and Asia. Sales also climbed 50% in South Korea. By the end of 2021, Aesop had added 25 stores and nine department store counters around the world, and this year will make its debut (along with The Body Shop) in China.

2021-2022 Highlights:

In 2021, Natura &Co launched Fable Investments, an initiative designed to support innovative Indie beauty companies. By the end of 2021, four companies were part of Fable’s investment portfolio: Perfumer H, a British artisan fragrance brand with stores in London and Paris; Maude, a sexual wellness company; Loli, an organic, zero-waste beauty brand; and Stratia, a science-based skincare brand.

Looking Ahead:

The company’s Q2 2022 performance continued to reflect challenging times. Net revenue was up 0.4% with digitally-enabled sales representing nearly 50% of total sales. 

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