Natura &Co has announced its second quarter 2023 results, which showed net revenue was BRL 7.8 billion, as compared to BRL 8.1 billion in the previous year.
Gross profit was BRL 5.1 billion, up 2.7% constant currency as compared to BRL 4.9 billion in the previous year.
First Half Results
First-half 2023 results show net revenue was BRL 15.1 billion, as compared to BRL 15.7 billion in the previous year.
Gross profit was BRL 9.9 billion, as compared to $9.7 billion in the previous year.
Natura &Co Latam
Second quarter net revenue was BRL 5.46 billion, as compared to BRL 5.55 billion in the previous year.
First half results showed net revenue was BRL 10.32 billion, as compared to BRL 10.31 billion in the previous year.
Avon International
Second quarter net revenue was BRL 1.5 billion, as compared to BRL 1.64 billion in the previous year.
First half results showed net revenue was BRL 3.1 billion, as compared to 3.5 billion in the previous year.
The Body Shop
Second quarter net revenue was BRL 800 million, as compared to BRL 909 million in the previous year.
First half results showed net revenue was BRL 1.6 billion, as compared to 1.9 billion in the previous year.
Fábio Barbosa, Group CEO of Natura &Co, said:
Natura & Co’s second-quarter performance continued to show the improvement already observed in Q1, with low-single digit top line growth at constant currency and a significant improvement in adjusted EBITDA margin. This was mainly driven by gross margin, benefiting from mix effects, partially offset by investments and inflation. Net income was still impacted by high financial expenses, which will be addressed upon closing of the sale of Aesop, expected to occur in Q3-23.
Cash conversion remains our main focus, and this quarter we saw further improvement in operating working capital dynamics, partially offsetting seasonal cash consumption in the quarter. We continue to drive our cash conversion improvement, mainly through working capital and net Capex optimization, among others, and we still see more opportunities to be captured on each one of these fronts, although we might face volatility from quarter to quarter.
Q2 23 was also a landmark quarter for us, as we kicked off Wave 2 in Peru and Colombia, with quite compelling initial results. In both markets, we saw a meaningful acceleration of cross-selling between brands, and more importantly, significant CFT productivity growth, resulting in greater prosperity for our beauty consultants. As we enter H2, our focus turns to the roll out of Wave 2 in Brazil. We are pleased with the initial learnings from Peru and Colombia, and we are confident that they will support us to deliver strong results for our biggest market in the region and those that will follow.
ESG remains in the forefront of our strategy, and I’m pleased to announce that Natura &Co obtained approval from the Science Based Targets initiative (SBTi) for its ambitious plan to reduce absolute scopes 1, 2 and 3 Greenhouse Gas emissions by 42% by 2030 from a 2020 base year. Our target is in line with the 1.5°C trajectory required by the Paris Agreement. Our results improved in H1 23, but we are still not satisfied with them. We look forward to delivering our strategy, continuing to position Natura &Co on the course towards strong profitability and low leverage, allowing us to pursue meaningful and sustainable growth in the future. Closing the sale of Aesop, implementing Wave 2 in Latam, further work on simplifying and turning around our international assets while delivering our ESG agenda are fundamental steps that will help us achieve our ambition.
