Natura &Co, the owner of Avon International, announced its fourth quarter and full year 2023 earnings, reporting fourth quarter net revenue of $1.3 billion, a loss of $542.2 million from Q4 2022. Full year 2023 revenue reached $5.3 billion, an 8.5% decrease from 2022.
Avon International also saw a decline in fourth quarter revenues, dipping 6.1% from Q4 2022 to $340 million. Adjusted EBITDA for the brand reached 11.3% with a gross profit margin of 62.4% in Q4 2023. The brand’s Beauty category was down slightly (2.6% year over year) in the fourth quarter, while Home & Style experienced a steeper decline. New product introductions were beneficial to the bottom line, even when considering the significant reduction the company made in SKUs launches. The company stated that this result reinforces its position that “fewer but better and more assertive product launches is the right long-term strategy for sustainable revenue and profitability evolution.”
Natura &Co also sold a number of its assets this year, including Aesop and The Body Shop brands, to focus on its Latin American market opportunities and improve integration of Avon into the group.
“2023 was a landmark year for Natura &Co, with important and significant advances on the strategy, operational and financial, and balance sheet fronts accomplished,” said Fábio Barbosa, Group CEO of Natura &Co. “2023 marked a pivotal chapter in the company’s history, setting the stage for the ambitious horizons we aim to reach in 2024 onwards. We are encouraged with the positive results from the strategy set approximately 18 months ago, but we must continue evolving in our strategy, as margins and cash remain as priorities in the short term, paving the way for additional investments in brands and technology. During 2024, resource allocation will continue to be a critical driver for future value creation, with a focus on investments in key growth markets and projects. We continue to expect volatility in top-line, but with margins improvements in the full year, particularly ex-Argentina.”
