Natura &Co, the parent business of direct selling companies The Body Shop, Aesop, and Avon, reported double-digit revenue growth and R$235 in net income in the second quarter of 2021.
The consequences of the company’s recent acquisition of Avon have aided this expansion. During the quarter, both the Avon brand in Brazil and Avon International enjoyed double-digit sales growth.
“Despite a persistently challenging environment, Natur &Co delivered another strong performance in the second quarter, demonstrating the relevance of our multichannel model, the powerful appeal of our brands and products, and unparalleled direct-to-customer reach,” said Roberto Marques, Executive Chairman, and Group CEO. “We beat the worldwide CFT market once again, with double-digit growth across all of our brands and operations. In addition, we highlighted new developments across all of our brands across the three pillars that make up our 2030 sustainability goal. The transformation and integration of Avon are progressing well, and we are on pace to meet our 2023 sales growth projection of high single digits on a compound annual basis and an EBITDA margin in the mid-teens.”
Avon International’s net sales increased by 33.6 percent in BRL during the quarter, with market share increases in key regions and categories. Online sales are now 2.7 times what they were before the epidemic, and adjusted EBITDA has grown 30 percent to R$94.3 million, with a margin of 4.3 percent.
The Body Shop reported a 24.3 percent rise in net sales in BRL, which the business attributes to excellent retail growth across the board. Although the brand lost 18 percent of its store days throughout the quarter, this happened. The Body Shop At Home sales, when coupled with the brand’s online sales, have increased by 2.6 times since the pandemic, and EBITDA has increased by 9.2 percent to R$158.6 million, with a margin of 13%.
Aesop also announced double-digit sales and profit growth, with net sales up 47 percent in BRL and growth across all areas, with Asia and the Americas leading the way. Ecommerce sales were 2.3 times more than they were before the epidemic, and EBITDA climbed 14.8 percent to R$117.8 million, with a margin of 21%.