“Refocused, deleveraged and leaner, Natura &Co will now be able to fully concentrate on its core relationship selling expertise in Latin America while also continuing the optimization of Avon International’s footprint,” said Fábio Barbosa, Group CEO of Natura &Co. 

Barbosa described the deal as “another important step in Natura &Co’s new development cycle to unlock significant value,” and analysts expect proceeds from the sale to create significant dividends for stockholders. 

The post Natura &Co Sells The Body Shop for $254 Million   first appeared on Direct Selling News.

“We are on the cusp of new frontiers for Avon,” said Angela Cretu, Avon International Global Chief Executive. “It is an exciting new chapter. Women like to touch and experience the product and have that joy of seeing all the colors available.” 

Locations for the stores have not been announced, but preliminary details suggest the stores will be located within neighborhoods, rather than “high street” locations. 

The company has already tested this method in Turkey, where it opened 63 Avon-branded stores, and saw sales growth double as a result. 

“Many customers go to the stores for an opportunity to try many of the products, or simply to enjoy a pamper experience with a beauty adviser,” Cretu said. “We want to be as inclusive as possible. We want to give women the opportunity to open a business, especially in areas where it is not so easy for them to launch a startup.” 

This launch is an expansion of its recently-announced partnership with UK store Superdrug that will stock Avon products in 100 of the chain’s retail outlets and online. 

The post Avon Launches Retail Stores in UK  first appeared on Direct Selling News.

Consolidated gross profit during the quarter reached $1.01 billion, posting a gross margin improvement year-over-year in all business units. Consolidated adjusted EBITDA was $154 million with a margin of 10%.  

The company ended the quarter with net cash of $143 million. 

“Avon International posted broadly stable top line and further margin improvements, reaching high-single-digit adjusted EBITDA margin,” said Fábio Barbosa, Group CEO of Natura &Co. “The proceeds from the sale of Aesop, closed in late August, enabled us to quickly advance in our liability management plan, with more than half of our debt already prepaid by the end of the quarter. This is an important step to unlock sustainable value for our investors and deliver on our financial priorities of maintaining a strong capital structure, strict financial discipline on costs and expenses, and boosting cash conversion. On the latter, we reached a neutral cash generation this quarter despite the normal seasonal cash consumption to build up inventories for the holiday season. Furthermore, marking the third year of our sustainability vision, after having made substantial progress towards our goals set in 2020, our approach has evolved. We have realigned our metrics, and targets to address the pressing concerns of our time. We have been a partner of the Union for Ethical Biotrade (UEBT) for over fifteen years and together we will work towards Natura &Co’s adoption of regenerative practices to deliver even more positive impact. Finally, we recently announced updates related to The Body Shop sale process and we will keep the market informed of any relevant news. This is another important step to continue to streamline our business, a journey started in the second half of 2022. We are confident that our enhanced capital structure, combined with a laser-focus strategy on our key priorities, will allow us to unlock significant value for our shareholders in the future through both topline growth and margin expansion.”   

The post Natura &Co Posts $1.54 Billion in Q3 2023 Net Revenue   first appeared on Direct Selling News.

This collaboration is part of the brand’s efforts to move toward becoming “a truly omnichannel beauty company.” 

“This is the perfect moment in the UK for a strategic alliance between Avon and Superdrug,” said Angela Cretu, Avon CEO. “At Avon, we’re all about bringing aspirational beauty at irresistible value to consumers however they want to shop with us, whether that’s with high-touch service from one of our beauty advisers or with high street convenience at Superdrug. We see this partnership as our next move to expand our reach with best-selling, award-winning products that enable women [to] feel good without breaking the bank.” 

The post Natura’s Avon Expands Omnichannel Strategy in UK  first appeared on Direct Selling News.

In April, Natura &Co entered into an agreement to sell Aesop to L’Oréal as part of its efforts to strengthen and deleverage its balance sheet and focus on further optimization of Avon International’s footprint and integration in Latin America. 

The company said it would not guarantee that the exploration of strategic alternatives for The Body Shop would result in a transaction. 

The post Natura &Co Considers Selling The Body Shop  first appeared on Direct Selling News.

The company saw a net loss of $146 million with a consolidated adjusted EBITDA of $151 million. Continued challenges with The Body Shop, which saw a 12.5% decline in net revenue, as well as an expected drop in Avon’s Home & Style category in Latam offset progress. 

“Natura & Co’s second-quarter performance continued to show the improvement already observed in Q1, with low-single digit top line growth at constant currency and a significant improvement in adjusted EBITDA margin,” said Fábio Barbosa, Natura &Co Group CEO. “This was mainly driven by gross margin, benefiting from mix effects, partially offset by investments and inflation. We look forward to delivering our strategy, continuing to position Natura &Co on the course towards strong profitability and low leverage, allowing us to pursue meaningful and sustainable growth in the future.” 

The post Natura &Co Posts Q2 2023 Net Revenue of $1.5 Billion   first appeared on Direct Selling News.

To obtain this approval, Avon implemented strict standards for its internal supplier and supply chain monitoring system to check ingredients for animal testing. Leaping Bunny approval is an ongoing, annual commitment, which means Avon’s efforts will continue into the future to remain a part of the certification. 

“We won’t stop working for regulatory change until the unnecessary use of animal testing in the cosmetic industry has ended completely,” said Natalie Deacon, Avon Director of Corporate Affairs and Sustainability. 

The post Avon Receives Leaping Bunny Approval  first appeared on Direct Selling News.

The 2023 Astra Award winners included the Polish DSA, for the DSA, Services to Members category; Avon, for the Making a Positive Difference category; and Mary Kay, for the Continuing Education and Upskilling category. 

Other awards included the induction of Jacques Cosnefroy, former General delegate of Federation de la Vente Directe and Philippe Jacquelinet, CEO of Captain Tortue group into the Seldia Hall of Fame. 

“We congratulate the winners of the 2023 Seldia Astra Awards for their remarkable contributions to the direct selling sector,” said Beatrice Nelson-Beer, Seldia President. “Their efforts exemplify the spirit of excellence and innovation that drives our sector forward. By celebrating their achievements, we aim to inspire others to embrace best practices, continuously improve, and make a positive impact in direct selling, and the society at large.” 

The post Seldia Astra Awards 2023 Honors Avon and Mary Kay  first appeared on Direct Selling News.

The company cited the sustainability and long-term profitability of the business, as well as declining populations, increased operating expenses on the islands and challenges incurred by natural disasters and the post-pandemic landscape as significant factors that contributed to this decision. 

Avon emphasized that it is committed to investing in its U.S. and Canada operations and will continue to explore new options for expansion. 

The post The Avon Company Closes Operations in Puerto Rico and Caribbean  first appeared on Direct Selling News.

“Our products are leaders in the makeup and skincare sectors in a highly competitive market. With the creation of these new teams, we will be able to offer products that are even better suited to the needs of the Latin American market. The change will also promote the exchange of experiences between the specialized teams of Avon and Natura, improving processes so that they remain dynamic and expanding the creative and innovative potential while maintaining the distinctive identity of each of the brands,” stated Louise Scott, Avon’s Head of R&D and Sustainability.

All global development of fragrances and personal care products will be conducted at the new Latin America Innovation Center, combining Avon’s 100+ years of knowledge in cosmetics development with industry experience. 

The post Avon to Open Innovation Center in Latin America first appeared on Direct Selling News.