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Published
Nov 9, 2018
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Natura profit doubles as revenues surge

Published
Nov 9, 2018

Brazilian cosmetics giants Natura &Co said on Thursday consolidated revenues for the third quarter recorded double-digit growth, resulting in the company's overall net profit for the three months to double.

Natura


The São Paulo-based company said total sales rose by 37.1% in the quarter, reaching R$3.24 billion (US$860 million). On an adjusted basis, net revenue grew 16.6%, on strong growth in all three brand areas.

Likewise, for the first nine-months sales gained 48.1%, reaching R$9.1 billion, and adjusted net revenue improved by 13.7%.

Net income more than doubled in the third quarter, with a rise of 118% to R$132.8 million, "driven by higher EBITDA and lower financial expenses... despite hyperinflationary accounting effects in Argentina and The Body Shop's transformation costs," said the company, in a press release.

Operating income grew on an adjusted basis by 10.2% in the third quarter, to R$326.6 million, and by 30.4% in the nine-month period, to R$754.1 million.    

Natura's CEO Roberto Marques praised the company's consistent quarterly performances, emphasising Natura Brazil and Latin America grew across core categories and online, while The Body Shop's sales increased, "boosted by head franchise orders and stable company stores sales." 

Australian-founded brand Aesop "maintained its stellar growth, both in like-for-like store sales and online," he added.

Natura's EBITDA registered high growth, reaching R$483 million, up by 7.2% on a reported basis. On an adjusted basis, EBITDA grew by 33.7% in Brazilian Reais.

Natura &Co operates its namesake brand Natura, as well as UK-origin The Body Shop and Australian high-end cosmetic brand Aesop.

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