This move is part of a larger strategy by the company to simplify operations. The company stated that “the vast majority of Natura &Co trading activity is concentrated on the B3 stock exchange” and that the decreasing trading volume on the NYSE no longer makes it a “compelling option.” 

“The planned delisting of Natura &Co from the New York Stock Exchange is consistent with our long-term strategy for the business,” said Fabio Barbosa, Natura &Co Chief Executive Officer. “This move underscores our continued focus on simplifying our operations to reduce complexity. We thank Natura &Co investors who held ADRs and look forward to welcoming many of them as shareholders on the B3 market. Upholding our dedication to transparency, we will maintain our high disclosure standards through our listing in Brazil.” 

Natura &Co’s delisting is expected to go into effect next month. 

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“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. 

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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.

“Under the stewardship of Natura &Co, Aesop reached new heights, expanding the brand’s presence across the globe,” said Fabio Barbosa, Natura &Co Chief Executive Officer. “In its constant striving for excellence, it also enhanced its sustainability practices. We feel immense gratitude and deep respect for its management and teams and will always hold the company close to our hearts. We wish Aesop all the best for the next chapter as part of the L’Oréal Groupe.” 

The post Natura &Co Closes $2.58 Billion Sale of Aesop  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.

Aesop’s reported revenue last year was $537 million, a huge leap from $28 million in 2012, when Natura acquired a 65% stake in the company. Since Natura formally bought the company in 2016, Aesop’s growth momentum has outperformed Natura’s other direct selling brands Avon and The Body Shop, and continues to show increased growth potential in international markets. Aesop’s new retail stores in China have become top revenue generators.  

“Aesop taps into all of today’s ascending currents and L’Oreal will contribute to unleash its massive growth potential, notably in China and Travel retail,” said L’Oréal CEO Nicolas Hieronimus in a statement. 

This sale is part of a larger strategy by Natura CEO Fabio Barbosa to simplify the company’s structure and cut costs. It is also expected to help reduce the company’s debts and aid in turning around its other businesses. 

“With a strengthened financial structure and a deleveraged balance sheet, Natura & Co, exercising strict financial discipline, will be able to sharpen its focus on its strategic priorities, notably our investment plan in Latin America,” Barbosa said. 

The acquisition is expected to finalize in the third quarter of this year. 

The post Natura &Co Sells Aesop to L’Oreal  first appeared on Direct Selling News.

Net revenue for Avon International and The Body Shop both declined more than 20% in BRL during the quarter and 9.9% and 8.4% at constant currency, respectively. For the full year, Avon International posted a net revenue decline of 22.9%. The Body Shop also saw a significant decline in full year net revenue of 24.3%. 

Aesop revenues were more stable, with fourth quarter net revenues that saw a 2.1% decline in BRL but an 18.2% increase in constant currency. For the full year, Aesop net revenues experienced a 4.6% increase in BRL, or 21% increase at constant currency. 

Although the company wields an omnichannel strategy, traditional direct selling still generates 70% of the company’s overall net revenue. Retail was the second greatest revenue generator at 19%. 

“We started 2022 navigating in a challenging macroenvironment, which worsened with the war in Ukraine, and uncertainty surrounding the performance of a few business units after a post-pandemic change in consumer behavior,” said Fabio Barbosa, Natura &Co Group Chief Executive Officer. “In this environment, we decided in mid-2022 to reassess the group’s growth model to enter a new stabilization cycle. Important changes were carried out, such as a stronger focus on profitability and cash conversion (with incentives adjusted accordingly), a revision of the cost structure and the role of the Holding company, alongside important revisions in our global footprint in order to position the business for success going forward.” 

The company also announced its plans for restructuring the brands to maximize shareholder value and streamline efficiencies within key retail channels. 

“Structural steps to create sustainable shareholder value are in motion in all our brands,” Barbosa said. “At Natura &Co Latam, we are accelerating the integration of Natura and Avon in order to capture the full benefits of the combination in the region. At Aesop, we are evaluating strategic options aiming to improve the company’s capital structure. At Avon International, we are continuing to optimize its geographic footprint in order to concentrate on profitable markets while reducing the cost structure. At The Body Shop, we are rightsizing the business, focusing on efficiencies and the core retail model in the face of the challenging channel mix changes it has experienced.” 

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