Natura & Co Up 36% for Year
Natura & Co reported 2018 net revenues grew by 36 percent over the previous year to R$13.4 billion.
Reported net income surged 48.7 percent in the fourth quarter to R$381.7 million, driven by higher EBITDA and lower financial expenses. This strong result came despite hyperinflationary accounting effects in Argentina and The Body Shop’s transformation costs.
Natura & Co’s Executive Chairman of the Board Roberto Marques stated, “With double-digit growth in revenue, adjusted EBITDA and net income and strong free-cash flow generation, Natura & Co’s performance in Q4 caps its first full year of existence with a very strong note. All three of our iconic brands contributed to this performance, with each one rolling out its specific strategy while benefiting from the scale, resources, sharing of best practices and strategic direction of the group.”
Natura posted the strongest quarter in its history in terms of revenue, which was up 15.7 percent to R$2.7 billion in Q4 and up 9.9 percent in the full-year, boosted by strong Christmas campaigns in Brazil and Latin America. In Brazil, reported sales grew 12.9 percent in the fourth quarter, with continued gains in market share, outperforming the market in key categories. In Latin America, reported revenue increased by 23.4 percent in the quarter and by 23.1 percent at constant currency. Mexico, Argentina and Colombia turned in very strong performances.
The Body Shop’s transformation plan is well underway and showing encouraging results. Net revenue was up 11.2 percent in Brazilian Reals in Q4 and up 17.7 percent in the full year. At constant currency, sales were down 1.7 percent in Q4. In the full-year, sales rose 1.7 percent in constant currency.
Aesop delivered yet another quarter and full-year of remarkable growth, with reported revenue up by 43.9 percent in Q4 and an even stronger 50.6 percent in the full year, with very strong performance across all channels and geographies. Aesop continued opening signature stores, adding 18 in the last 12 months to reach 227 at year-end.
To read the full Natura & Co 2018 financial report, click here.