Key facts
- Natura's preliminary Q2 revenue fell 9-10% year-on-year to BRL 5.1-5.2 billion.
- The company expects its reported EBITDA margin to increase in Q2.
- Natura reported a net income of BRL 445 million in Latin America for Q2-25.
- Net revenue for Q2-25 was BRL 5.7 billion, up 5.5% in constant currency.
- Avon International operations outside Latin America are classified as assets held for sale.
Brazilian cosmetics company Natura reported preliminary second-quarter consolidated net revenue between 5.1 billion and 5.2 billion reais, a decrease of 9% to 10% compared to the previous year. The company expects its reported EBITDA margin to increase from the first quarter, citing lower severance expenses and efficiencies from its new operating model.
More complete quarterly results are scheduled for release on August 10. In its detailed Q2-25 results, Natura reported a net income of BRL 445 million in Latin America, and BRL 195 million when including Avon's operations outside Latin America, which are now classified as assets held for sale. Total Q2-25 net revenue reached BRL 5.7 billion, marking a 5.5% increase in constant currency, driven by strong performance from Natura Brazil and growth in Hispanic markets, though partially offset by Avon's performance in Brazil.
The recurring EBITDA margin in Latin America stood at 14.7%, an improvement of 10 basis points compared to the same period in 2024, primarily due to enhanced gross margin from more mature integration of Natura and Avon brands in certain markets. CEO João Paulo Ferreira expressed confidence in delivering annual profitability growth despite slowing consumption.