NUACF - NUACF STOCK NEWS

Natura & Co's Q1 2024 financial results reveal a mixed performance. Consolidated net revenue hit BRL 6.1 billion, showing a 1.1% rise in constant currency but a 5.7% decline year-on-year in Brazilian Reais. Natura Latam excelled, with revenue growth of 3.1% YoY in CC, led by Natura Brazil's 11.3% increase. This was driven by strong retail sales and the launch of the 'Perfumada' fragrance campaign. However, Avon Latam reported declines of over 11% in Brazil and Hispanic Latam due to fewer representatives.

Avon International faced a 4.7% revenue drop in CC despite efforts to enhance gross margins and explore new distribution channels. Consolidated profitability improved thanks to a 90 bps increase in gross margin, reaching 65.2%. Adjusted EBITDA was BRL 683 million, with a margin expansion of 110 bps YoY.

However, the reported net loss widened to BRL 935 million, impacted by discontinued operations, higher taxes, and FX losses. Excluding one-offs, the underlying net income was BRL 116 million. CEO Fabio Barbosa highlighted the positive impact of the Natura-Avon integration but acknowledged ongoing challenges.

Natura &Co's 2023 financial results show positive net cash of BRL 1.7 billion and net income of BRL 3.0 billion, with BRL 979 million to be distributed as dividends. The company focused on profitability, cash conversion, and integration of Natura and Avon brands, resulting in a consolidated net revenue of BRL 26.7 billion. Improved gross margin, adjusted EBITDA, and net income reflect the successful execution of the financial and operational strategy, despite challenges like hyperinflation in Argentina. The company also achieved a strong net cash position and debt reduction, marking a significant milestone in its corporate strategy.

Natura &Co (NYSE: NTCO; B3: NTCO3) has agreed to sell The Body Shop to Aurelius for an enterprise value of GBP 207 million, with an earn-out of GBP 90 million. The transaction is expected to close by December 31, 2023. Natura &Co aims to refocus on strategic priorities, including integrating Natura and Avon brands in Latin America, while Aurelius plans to enhance The Body Shop's transformation journey. The sale allows Natura &Co to unlock significant value and concentrate on core relationship selling expertise.

Natura &Co (NYSE: NTCO; B3: NTCO3) reported positive Q3 results, posting R$7.5 billion in net revenue with stable growth in Brazil and Latin America. The company's gross margin grew by 310 bps, and adjusted EBITDA margin was up 190 bps. Natura &Co returned to a positive net cash position due to the Aesop sale proceeds, prepaying over half of its debt. The integration of Natura and Avon in Brazil's Wave 2 showed encouraging early results, contributing to combined YoY revenue growth in the CFT category.

Natura &Co completes sale of Aesop to L'Oréal for $2.58 billion, strengthening balance sheet

The Body Shop announces a leadership change as David Boynton steps down after five years as Chief Executive, with Ian Bickley appointed interim CEO. The transition comes as The Body Shop aims to accelerate its transformation and return to profitability amidst challenging market conditions. Ian Bickley, an experienced figure in retail, has a history of driving growth and innovation, having worked with brands like Coach and Crocs. His role will involve collaborating with the Executive Leadership Team to refine business strategies and find a permanent successor. The company has rejuvenated nearly 500 products and launched new store concepts under Boynton's leadership, positioning it for future growth.

Natura &Co has announced a significant milestone, reaching an agreement for L'Oréal to acquire its luxury beauty brand Aesop for an enterprise value of US$2.525 billion. This transaction is expected to finalize in Q3 2023, pending regulatory approvals. The sale follows a decade of growth for Aesop, during which gross sales soared from US$28 million to US$537 million. Natura &Co aims to strengthen its financial position and redirect resources towards strategic priorities, particularly in Latin America, while optimizing its Avon and Body Shop brands.

Natura &Co announced its agreement with L'Oréal to sell Aesop for US$ 2.525 billion, a move expected to close in Q3 2023 pending regulatory approvals. This divestment aims to enhance Natura &Co's financial structure, allowing the company to focus on strategic priorities, particularly in Latin America and improving The Body Shop and Avon International. Aesop has demonstrated significant growth under Natura &Co, with sales soaring from US$ 28 million in 2012 to US$ 537 million in 2022, expanding its store count from 52 to 395. Natura &Co reported net revenues of R$36.3 billion in 2022.