Natura &Co experienced another quarter of double-digit revenue expansion in the first quarter, outperforming the global Cosmetics, Fragrance, and Toiletries industry thanks to a significant rise in digital revenues.
Sales growth in Brazilian Reais at all four of the Group’s brands drove consolidated net income to R$9.5 billion (US$1.8 billion) in Q1, up 25.8% in Brazilian Reais and 8.1 percent in constant currency.
Digital Social Selling and E-Commerce
Further growth in digital social sales and e-commerce across all brands fueled this excellent Q1 result. Online revenue for the whole company increased by 166 percent. Digital revenues for the Natura brand increased by 253 percent, and Avon’s worldwide sales increased by 132 percent.
In the third quarter, Aesop’s net internet revenues increased by 102 percent, accounting for 29 percent of total revenue. The Body Shop’s shift to e-commerce and direct marketing platforms grew by 119 percent and 251 percent, respectively, to account for 51 percent of overall revenue.
Natura &Co has made progress in the integration of Avon, introducing a new commercial platform. Natura &Co lifted its synergies goal for the Avon merger by US$50 million to between US$350 million and US$450 million by 2024 at its latest Investor Day in April.
Natura &Co has closed a US$1 billion bond issue tied to sustainability targets earlier this month. Natura has agreed to reach two crucial environmental success metrics by the end of 2026 as part of the deal.
These objectives are in line with the Group’s “Commitment to Life,” as well as its 2030 Sustainability Vision. They help Natura & Co’s attempts to solve the global climate challenge and achieve complete circularity.
“In a persistently competitive climate, Natur &Co delivered another good result in the first quarter, highlighting the strength of its direct-to-consumer, multichannel platform,” said Roberto Marques, executive chairman, and company CEO.
“In the quarter, all of our brands and businesses saw growth in Brazilian Reais, and our continued shift to digital and online sales enabled us to outperform the global CFT market once again. The company’s continuity in linking financial and environmental priorities is shown by the recent successful execution of our US$1 billion bond issue with transparent and advanced sustainability-linked goals.”