Natura & Co. has released its financial results for the third quarter of 2019 and announced it is on track to close its acquisition of Avon by the first quarter of 2020.
According to the company, its consolidated net revenues reached $3.5 billion, a 7.2% increase from Q3 2018. The company also reported an 8.1% year-over-year increase for the first nine months of 2019.
Natura & Co. saw growth across all three of its brands for Q3 2019:
- Natura’s net revenue increased by 7.2% in Brazil and 10.2% in BRL, or 28.8% at constant currency, reaching $2,241.8 million.
- The Body Shop’s net revenue increased by 1.1% in BRL, or 3.8% at constant currency, reaching $935.7 million.
- Aesop’s net revenue increased by 10.8% in BRL, or 10.2% at constant currency, reaching $296.3 million.
“Natura & Co. posted a remarkable sales performance in the third quarter, exceeding market expectations, with double-digit growth in constant currency,” Roberto Marques, executive chairman of the board of Natura & Co. “All our businesses and brands again contributed to growth despite headwinds in such markets as Brazil, where Natura continued to grow market share, and Hong Kong, which impacted The Body Shop and Aesop. Profitability notably reflected two effects that will contribute to strengthening our multi-brand group: A planned, phased increase in investments at Natura in its brand and digital operations to support its future growth, and non-recurring costs associated with the acquisition of Avon Products Inc.”
Marques continued, “We are excited with the progress made to complete the acquisition of Avon. With the recent approval of Brazil’s anti-trust authorities of Natura & Co.’s acquisition of Avon and the approval of the transaction today by shareholders of both companies, we are on track to complete the closing of the transaction as planned in the first quarter of 2020."