Natura &Co, the parent company of direct selling organizations The Body Shop, Aesop and Avon, announced double-digit revenue growth in the second quarter of 2021 and net income of R$235.
This growth is supported by the effects of the company’s recent acquisition of Avon. The Avon brand in Brazil and Avon International both saw strong, double-digit revenue growth during the quarter.
“Natura &Co turned in another strong performance in the second quarter despite a persistently challenging environment, demonstrating again the relevance of our multichannel model, the powerful appeal of our brands and products and unparalleled direct-to-customer reach,” said Roberto Marques, Executive Chairman and Group CEO. “All of our brands and businesses posted double-digit growth and we once again outperformed the global CFT market. We also reported new advances at all our brands across the three pillars that comprise our sustainability vision for 2030. The transformation and integration of Avon is advancing well, and we are on track to achieve our 2023 guidance of high single-digit sales growth on a compound annual basis and mid-teens EBITDA margin.”
Avon International’s net revenue growth in the quarter was 33.6% in BRL, with market share gains in its key countries and categories. Online sales are 2.7 times their pre-pandemic level and adjusted EBITDA increased 30% to R$94.3 million with a 4.3% margin.
The Body Shop reported a net revenue increase of 24.3% in BRL, which the company attributes to a strong growth in retail in all of its regions. This occurred even though the brand lost 18% of their store days during the quarter. The Body Shop At Home combined with the brand’s online sales are 2.6 times pre-pandemic levels, and EBITDA rose 9.2% to R$158.6 million with a margin of 13%.
Aesop also reported strong double-digit growth in sales and profitability with net sales increasing 47% in BRL and seeing growth in all regions, led by Asia and the Americas. Ecommerce sales stood 2.3 times greater than pre-pandemic levels and EBITDA increased 14.8% to R$117.8 million with a margin of 21%.