Brazilian cosmetic giant, Natura & Co, racked up sales of R40.1 billion ($11.23 billion) last year through its four pillar brands – Avon, Natura, The Body Shop and Aesop.

The multinational has faced challenges in Europe this year, exacerbated by low consumer confidence and the war in Ukraine. But still pulled in worldwide revenues of R8.7 billion ($2.436 billion) in its Q2, fueled by strong growth in its core Natura brand in South America, double digit global growth by Aesop and improvements in Avon’s re-structuring.

The Natura brand was again ranked as the strongest cosmetic brand in the world by Brand Finance‘s brand strength index. Net revenues in its home base of South America jumped 5.6 per cent in Q2, mainly driven by demand in Brazil, Argentina and Colombia.

Avon was particularly hard hit in Europe and the company’s net revenues declined 11.2 per cent in the second quarter. But the direct seller’s new commercial model, now launched in 16 markets, is showing positive signs for the rest of the year.

The Body Shop also suffered an 11.8 per cent drop in net revenue in Q2. On the bright side, sales were higher than the same period last year due to the rise in store traffic in leading markets.

Aesop was again a highlight of Natura’s balance sheet, following a net revenue increase of 24.5 per cent in the second quarter. All markets delivered double digit growth as the brand rolled out new stores in Australia, Spain, the UK, South Korea and Canada.

Fabio Barbosa, Group CEO of Natura & Co, noted – “Although we expect our businesses’ revenue to trend better in the second half of the year, we believe the challenges in the macro environment will persist. Our clear and immediate priority is to focus on margins and operational cash flow, and the teams at all our brands and businesses are mobilised and incentivised on those clear goals.”

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