THE WHAT? Natura &Co has continued to improve its profit margins in the third quarter of the current financial year, while deleveraging its balance sheet courtesy of the sale of Aesop, which completed on August 30, 2023.

THE DETAILS The Brazilian beauty giant’s revenue dipped 0.7 percent yoy at constant currency, to R$7.5 billion. Gross margin grew by 310 bps and adjusted EBITDA margin rose 190 bps versus the prior-year period.

The Natura brand was the star performer with double digit growth in constant currency (+18.6 percent). Avon International saw revenue drop 2.3 percent while The Body Shop posted a decline of 13.2 percent.

THE WHY? Fabio Barbosa, Group CEO of Natura &Co, explains, “Natura &Co Q3’s performance continued the trend of the first two quarters of the year, showing a strong expansion of both Gross margin and EBITDA margin versus the prior year, despite a small deceleration in revenue, mainly caused by the implementation of Wave 2 in Latam and the continuing declining trend in sales at The Body Shop.”