Natura & Co doubled net income in the second quarter | Companies | Business

Natura & Co more than doubled its net earnings in the second quarter and recorded a growth in the revenues of its three brands.

The quarter was marked by the announcement, on May 22, the acquisition of Avon Products Inc., which will make Natura & Co the fourth largest group dedicated to the beauty of the world.

(Natura confirms the acquisition of its American rival Avon).

Consolidated net revenues reached 3.4 billion reais, a growth of 9.8% in reported bases and 7.7% in adjusted bases. Ebitda rose 27%, reaching 424.7 million reais, while adjusted Ebitda grew 10.6%, reaching 411.3 million reais. Net earnings increased around 110%, reaching 66.6 million reais.

Roberto Marques, president of the company, said: “In this quarter Natura & Co also took a new and decisive step towards the creation of a multibrand, multichannel and purpose-driven global group, announcing the acquisition of Avon Products Inc. During the first 2020 quarter, we expect to close the transaction as planned. ”

(Natura will assume operation of The Body Shop in A. Latina).

Total adjusted revenues of the Natura brand in Brazil rose 6.7%, driven by strong Mother's Day and Valentine's Day campaigns. Productivity per consultant increased for the 11th consecutive quarter, 7.9%, and Natura's digital platforms have 680,000 user consultants.

Latin America also recorded a 5.3% growth in adjusted net income in reais, with a significant 17.3% in constant currency. Argentina obtained an important performance despite the challenging commercial scenario while Mexico and Colombia also registered growth. Natura's adjusted consolidated Ebitda increased 6.5%, reaching 366 million reais.

Natura & Co joined 27 other companies in a commitment to keep the global average temperature rise by 1.5 ° C above pre-industrial levels and reach zero net emissions by 2050.

The Body Shop transformation plan yielded other encouraging results. Net income grew 7.5% in reals and 2.6% in constant currency in the third quarter. Sales in own stores increased 6.7% in Great Britain. In Aesop, revenues rose 20.7% in reais and 9.2% in constant currency.