Brazil’s Natura Cosmeticos SA posted a 39 percent drop in quarterly profit, reflecting unfavorable conditions in the brand’s domestic market.
On the back of lagging sales, higher taxes and currency depreciation in Brazil, where revenue dropped nearly 10 percent, profit fell 39 percent to 132 million reais (US$34 million). On average, analysts had estimated profit of 190 million reais. The results also include a provision to buy the remaining 29 percent of Aesop, Natura’s Australian subsidiary. The retail brand now has 120 stores in 18 countries, up from 94 stores in 12 countries a year ago.
The beauty enterprise reported net revenue of 2 billion reais (US$513 million), up 6.9 percent from the third quarter of 2014. Earnings before income, taxes, depreciation and amortization dipped 6.4 percent to 400 million reais.
Revenue from Natura’s international operations, including France, Latin America and Aesop, spiked 75.8 percent from a year earlier. All told, sales outside Brazil accounted for 31.8 percent of revenue, up from 19.3 percent in the third quarter of 2014.