Natura &Co posted another strong performance in the second quarter of 2019, with net income more than doubling and revenue growth in all three brands.
Consolidated net revenue reached R$3.4 billion, up 9.8 percent on a reported basis and up 7.7 percent on an adjusted basis. EBITDA rose 27 percent to R$424.7 million, while adjusted EBITDA rose 10.6 percent to R$411.3 million. Net income increased nearly 110 percent to R$66.6 million.
“With strong revenue growth, a double-digit increase in adjusted EBITDA and a doubling in net income, Natura &Co posted another very solid set of results in Q2,” said Roberto Marques, executive chairman of Natura &Co. “All three of our existing brands and businesses contributed to this strong performance while making further progress in their sustainability agendas.”
The Natura brand’s adjusted net revenue in Brazil was up 6.7 percent in Q2, driven by strong Mother’s Day and Valentine’s Day campaigns. Productivity per consultant rose for the 11th consecutive quarter, by 7.9 percent, and Natura’s digital platform continues to advance, with 680,000 consultants using it.
The Body Shop’s transformation plan showed further encouraging results. Net revenue was up 7.5 percent in Brazilian Reals and 2.6 percent in constant currency in Q2. Like-for-like own-store sales grew 6.7 percent in the UK, underscoring the brand’s growing attractiveness in its biggest market.
Aesop delivered yet another quarter of solid growth. Revenue increased 20.7 percent in Reals and 9.2% at constant currency. Like-for-like retail sales growth was 5 percent.
The quarter was also marked by the announcement on May 22 of the transformational acquisition of Avon Products, Inc, which will make Natura &Co the world’s fourth-largest pure play beauty group and a leader in Direct-to-Consumer.
To read the full Natura &Co’s Q2 2019 financial report, click here.