10.17.24
Natura &Co is #12 on our Top Global Beauty Companies 2024 Report.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#12 Natura &Co
São Paulo, Brazil
www.naturaeco.com
Net revenue for Natura &Co Latin America, was up 6.4% in constant currency, driven by healthy growth at the Natura brand in Brazil. Avon International’s revenue was down 4.4% YoY in consistent currency, despite Beauty’s stable performance.
Natura &Co’s Wave 2 strategy was implemented 23 months ago and highlighted cash conversion versus revenue growth, as well as divesting non-core assets to deleverage and simplify the corporate structure.
The company made progress on Wave 2 of Natura and Avon’s business combination process in Latin America. This resulted in a strong performance from the Natura brand in Brazil and a rebounding trend from Avon amid ongoing operational enhancements. As part of Wave 2, improvements in service levels were made in Peru and Colombia, facilitating a smoother integration of Natura, and Avon in Chile was completed in early 2024.
In 2023, Natura &Co achieved significant milestones, marking a transformative year driven by strategic initiatives. Key highlights include the successful execution of our simplification strategy, demonstrated by the divestment of Aesop and The Body Shop, resulting in a further streamlined holding structure and enhanced autonomy within Business Units.
In November 2023, Natura &Co sold The Body Shop to international private equity group Aurelius for a value of $254 million, including an earn-out of $110 million. The earn-out will be payable up to five years after the closing on January 10, 2024.
Aurelius said it is committed to maintaining The Body Shop’s long-standing, distinctive values, instilled by its founder, Dame Anita Roddick.
In selling The Body Shop, Natura &Co refocused on its strategic priorities, accelerating the integration of the Natura and Avon brands in Latin America, and further optimizing Avon International’s footprint.
In February 2023, Avon began selling on Amazon to expand its omnichannel strategy. This move allows Avon to serve a wider customer base and boost its digital presence. To further expand Avon’s global presence, in October 2023 the brand launched at Superdrug stores in the UK.
In selling on Amazon and in stores, Avon enables consumers to shop in the way they would prefer to shop, meaning shopping through their representatives, retail, marketplaces, and e-commerce. Avon still offers its products on digital brochures, paper brochures, and now at franchise stores. Avon has successfully opened 63 Representative franchise stores in Turkey and the UK.
Natura &Co. explored the separation of Natura &Co Latam and Avon as two independent listings. This would allow both companies to pursue tailored strategies and give shareholders more visibility into company structures.
The separation would not affect the integration of both brands in Latin America. As of now, the separation will be decided by the Board of Directors and will be subject to a variety of conditions. Currently, no decision has been made.
While challenges persist, particularly the volatility in Avon’s revenue performance in Latin America, Natura &Co is poised to continue driving profitability and cash conversion enhancements, building upon the momentum of 2023.
Below is a look at the company's 2023 highlights, recent acquisitions, best-selling brands, and latest innovations.
#12 Natura &Co
São Paulo, Brazil
www.naturaeco.com
Beauty Sales:
$5.5 billionKey Personnel:
- Fábio Barbosa, CEO, Natura &Co.
- João Paulo Ferreira, CEO, Natura &Co, Latin America
- Kristof Neirynck, CEO Avon International
- Guilherme Strano Castellan, Chief Financial and Investor Relations Officer
Major Brands:
- Natura
- Avon
New Products:
- Avon: Fresh Green Floral and Soft Floral Deodorant Stick
Comments:
Consolidated net revenue for Natura &Co was $5.5 billion thanks to Natura’s solid performance, partially offset by the expected reduction at Avon Latin America and mid-single digit decline at Avon International.Net revenue for Natura &Co Latin America, was up 6.4% in constant currency, driven by healthy growth at the Natura brand in Brazil. Avon International’s revenue was down 4.4% YoY in consistent currency, despite Beauty’s stable performance.
Natura &Co’s Wave 2 strategy was implemented 23 months ago and highlighted cash conversion versus revenue growth, as well as divesting non-core assets to deleverage and simplify the corporate structure.
Natura &Co sold The Body Shop, and refocused on its strategic priorities, accelerating the integration of the Natura and Avon brands in Latin America.
The company made progress on Wave 2 of Natura and Avon’s business combination process in Latin America. This resulted in a strong performance from the Natura brand in Brazil and a rebounding trend from Avon amid ongoing operational enhancements. As part of Wave 2, improvements in service levels were made in Peru and Colombia, facilitating a smoother integration of Natura, and Avon in Chile was completed in early 2024.
In 2023, Natura &Co achieved significant milestones, marking a transformative year driven by strategic initiatives. Key highlights include the successful execution of our simplification strategy, demonstrated by the divestment of Aesop and The Body Shop, resulting in a further streamlined holding structure and enhanced autonomy within Business Units.
In November 2023, Natura &Co sold The Body Shop to international private equity group Aurelius for a value of $254 million, including an earn-out of $110 million. The earn-out will be payable up to five years after the closing on January 10, 2024.
Aurelius said it is committed to maintaining The Body Shop’s long-standing, distinctive values, instilled by its founder, Dame Anita Roddick.
In selling The Body Shop, Natura &Co refocused on its strategic priorities, accelerating the integration of the Natura and Avon brands in Latin America, and further optimizing Avon International’s footprint.
In February 2023, Avon began selling on Amazon to expand its omnichannel strategy. This move allows Avon to serve a wider customer base and boost its digital presence. To further expand Avon’s global presence, in October 2023 the brand launched at Superdrug stores in the UK.
In selling on Amazon and in stores, Avon enables consumers to shop in the way they would prefer to shop, meaning shopping through their representatives, retail, marketplaces, and e-commerce. Avon still offers its products on digital brochures, paper brochures, and now at franchise stores. Avon has successfully opened 63 Representative franchise stores in Turkey and the UK.
Natura &Co. explored the separation of Natura &Co Latam and Avon as two independent listings. This would allow both companies to pursue tailored strategies and give shareholders more visibility into company structures.
The separation would not affect the integration of both brands in Latin America. As of now, the separation will be decided by the Board of Directors and will be subject to a variety of conditions. Currently, no decision has been made.
Looking Ahead:
Natura &Co remains focused on further simplification, as evidenced by the delisting of its ADR from the New York Stock Exchange, and the evaluation of the potential separation of Natura &Co Latin America and Avon International.While challenges persist, particularly the volatility in Avon’s revenue performance in Latin America, Natura &Co is poised to continue driving profitability and cash conversion enhancements, building upon the momentum of 2023.
