Brazilian cosmetics business Natura & Co’s losses have narrowed in Q1 2025 on the back of a bumper quarter of trading.
The business reported revenues of R$5.3bn, up 12.2% compared with the same quarter last year, and total revenue hit R$6.7bn, including R$1.4bn from Avon International.
This led to net losses decreasing by 84%, reaching R$151m and down from R$935m in 2024.
Natura’s reinforced focus on Latin America, which is part of the company’s simplification strategy announced three years ago, also supported the decrease in losses.
The strategy aims to combine Natura and Avon’s business operations in Latin America to improve profitability and streamline its operations.
Natura is now on the second stage of this simplification process, dubbed ‘Wave 2’
“Latin America’s performance this quarter contributes to our ultimate goal of achieving year-on-year expansion of the recurring EBITDA margin by the end of 2025,” said Natura’s CEO João Paulo Ferreira.
Results were also driven by the Natura brand performance, which recorded a revenue increase of 8.2% in Brazil and 38.4% in the Hispanic countries.
In Brazil, retail growth was driven by bumper same-store sales performance and a consistent pace of new store openings.
Natura now has 149 owned stores in the region, an increase of 34 compared with last year.
Digital sales, meanwhile, increased by 34.7% year-on-year.
“Efficiencies from Wave 2 will continue to be partially reinvested in marketing and other strategic fronts, with some volatility between quarters, but on a more balanced basis compared to previous years, given that investments are better spread over the periods,” Paulo Ferreira added.
“In addition, the implementation of Wave 2 in Mexico and Argentina is expected to be completed in 2025.
“As a result, the transformation cost cycle will end this year and should not exceed the total recorded in 2024.”