Natura &Co posted another strong performance in the third quarter of 2019, with revenue growth in all three of its brands: Natura, The Body Shop and Aesop.
Natura &Co’s consolidated net revenue reached R$3.5 billion, up 7.2 percent on a reported basis and up 10.1 percent at constant currency. The Natura brand’s adjusted net revenue in Brazil was up 8.1 percent in Q3. Productivity per consultant rose for the 12th consecutive quarter. Natura’s digital platform now has 860,000 users in Brazil and online sales grew in double-digits. Latam also saw growth of 10.2 percent in adjusted net revenue in Brazilian Reals and a stronger 28.8 percent in constant currency.
The Body Shop’s net revenue was up 1.1 percent in Reals and 3.8 percent in constant currency in Q3. Aesop delivered another quarter of solid growth. Revenue increased 10.8 percent in Reals and 10.2 percent at constant currency.
“Natura &Co posted a remarkable sales performance in the third quarter, exceeding market expectations, with double-digit growth in constant currency,” said Roberto Marques, executive chairman of Natura &Co. “All our businesses and brands again contributed to growth despite a market that remains challenging in Brazil, where Natura continued to grow market share, and Hong Kong, which impacted The Body Shop and Aesop.”
According to the company, the quarter was also highlighted by Natura celebrating its 50th anniversary and entering a new country, Malaysia, leveraging The Body Shop’s market knowledge. The quarter also saw Natura &Co make new advances in sustainability: Natura’s Carbon Neutral Program, which totally offsets the company’s carbon emissions, received the 2019 United Nations Global Climate Action Award, the world’s most important recognition of initiatives to fight climate change, while The Body Shop joined Natura in becoming a B-Corporation.
Natura &Co has also taken major steps towards closing the transformational acquisition of Avon Products, Inc., with new milestones reached: Only a few days after CADE, Brazil’s anti-trust authority, approved the acquisition without restrictions, Natura and Avon’s shareholders both voted in favor of the transaction at extraordinary shareholders’ assemblies. The group remains on track to close the acquisition as planned in the first quarter of 2020, creating the world’s fourth-largest pure play beauty group and a leader in direct-to-consumer.
