Natura &Co announced its financial results for the first quarter of 2025. The company achieved consolidated net revenue of $1.1 billion, a 45.8% year-over-year increase when considering Brazilian Reais. In LATAM constant currency, that net revenue boost was 12.2%, which the company attributes to strong performance in Hispanic markets. Consolidated recurring EBITDA was $139.7 million, down 140 basis points year-over-year as a result of dilution by Avon International’s reconsolidation. Natura &Co’s recurring EBITDA margin was up 15%, an improvement from 9.6% sequentially. The company saw a net loss of $26 million.
“Following a challenging Q4-24, Natura &Co LATAM continues to advance on the Wave 2 profitability improvement path and started the year with a sound recurring EBITDA margin of 15.0% (13.9% adjusted to nonoperational impacts), as Mexico and Argentina continued their rollout throughout the quarter,” the company wrote in a statement. “On the operational front, Natura brand maintained solid performance, though slightly softer amid Brazil’s volatile macro scenario, partially offset by a still challenging environment for the Avon brand.”
Natura Brazil saw an 8.2% year-over-year improvement in revenue during the quarter, while Natura Hispanic LATAM saw a 38.4% year-over-year revenue increase.
The company stated that it was continuing to “evaluate strategic opportunities for Avon International, including a potential divestment.”
“We are confident that we started the year with a strong note in LATAM and the current course of action will lead more benefits in the P&L and cash conversion,” the company wrote in a statement. “We also believe that our strategic investments will support growth in the future, yielding benefits in a stronger and more diversified channel and bigger and bolder innovations.”
