Brazil-based Natura Cosmeticos SA on Thursday reported a net loss in the first quarter, despite a slight uptick in revenue.
The cosmetics company lost $19.8 million, compared with a profit of $34.2 million in the first quarter of 2015. Profit was driven down by a $17.8 million non-cash charge, the result of unfavorable exchange rates on a provision to acquire the remaining interest in Australia-based Aesop. Natura took a majority stake in the beauty company in December 2012.
Quarterly revenue rose 2.9 percent to $483.8 million. In Brazil, where Natura claims an 11.1 percent market share, slowing sales were exacerbated by higher taxes and inflation. Revenue was down 10 percent in the market, but up 32 percent in the company’s Latam segment, made up of Argentina, Chile, Colombia, Mexico and Peru. Aesop sales doubled from a year earlier as the brand added 43 retail stores.