Natura &Co, parent company of Avon, The Body Shop and Aesop, announced its consolidated net revenue for the fourth quarter was up 24.3% in Brazilian Reais and 6.4% at constant currency, equaling R$12 billion, or approximately US$2.1 billion.
The company attributes strong digital sales and digital social selling to its profit growth and for offsetting the impacts of the pandemic. Overall, the company significantly outperformed the global cosmetics, fragrance and toiletries market.
“In a year of unprecedented challenges, Natura &Co associates and our network across all of our businesses showed care and adaptability in the face of a global pandemic, demonstrating both our purpose-driven approach to business and the strength of our omnichannel, multi-brand model,” said Roberto Marques, Executive Chairman and Group CEO of Natura &Co. “Our performance in the fourth quarter attests to that, with strong growth in sales and profits. By pivoting rapidly to digital social selling and e-commerce when stores were closed by lockdowns, we were able to outperform the CFT market both globally and in Brazil.”
One year after the company’s integration of Avon into its brand family, synergies from Avon integration reached US$25.5 million in the fourth quarter, with US$73.3 million expected for all of 2020. The company continues to transform and rejuvenate the Avon brand, including the launch of a new commercial model.
A few highlights from 2020:
- Natura &Co unveiled its 2030 sustainability vision, Commitment to Life, and became the world’s largest certified B-Corp
- The Natura brand avoided 32% in emissions, and all four brands announced plans to become Net Zero by 2030
- Natura &Co invested nearly R$500 million in 2020 to philanthropic initiatives, like battling COVID-19 and supporting women
- In October, Natura &Co successfully completed a US$1 billion capital raise, which significantly deleveraged the company’s balance sheet
- The company ended 2020 with a net debt to EBITDA ratio of 0.97 times
- Natura &Co’s Q4 total group digital sales were up 79%, with all brands reporting record e-commerce sales.
- Q4 E-brochure revenue was up nearly 90% for Avon compared to the same quarter of 2019