Latest news with #JoãoPauloFerreira
Business of Fashion
3 days ago
- Business
- Business of Fashion
Natura CEO Bets on Mexico as Cosmetic Maker Recovers
Natura & Co. is targeting the Mexican market in its push to boost sales as chief executive officer João Paulo Ferreira works to reinvigorate the cosmetics company after disappointing earnings at the end of last year. 'We will grow disproportionately in Mexico,' Ferreira said in an interview. Natura plans to expand its presence in the country from its current footprint of 16 stores and stands, as well as its online operation and its network of more than 500,000 beauty consultants that offer its products in the country. Ferreira declined to provide any targets for store openings. Natura is offering its entire product line, from perfumery to hair products and makeup, in Mexico but currently has just a 5.4 percent share of the market. That trails the 11.5 percent share that French rival L'Oréal holds in Latin America's second-largest economy. While the Brazilian company plans to accelerate its investment in Mexico through organic growth, the CEO didn't rule out an acquisition in the future. Ferreira, who led the Latin America division before being named to oversee the entire group in March, said his goal is to 'capture value from our own business' while laying the groundwork to resume dividend payments. Natura shares plunged 30 percent on March 14 after fourth-quarter results fell short of expectations, sparking investor criticism. The stock has pared some of those losses to trade at about $10.50 a share, down 17.7 percent so far this year. Ferreira said he's hoping to restore market confidence with a clearer strategy and financial discipline. 'The Latin America business is a cash generator and we want to minimize cash consumption,' the CEO said in New York this month. 'We don't have short-term debt — and it's relatively cheap — so in the near future we can expect dividends again.' Ferreira spent 48 hours in the US financial capital for meetings with international investors, saying his message to them was that Natura is 'back on track' under his leadership. He also detected growing interest among global money managers about its home market. 'They were keen to talk about Brazil — more than I expected,' he said. Amazon & Avon Natura is famous for using Amazon rainforest ingredients in its beauty products and is planning to announce a biodiversity research facility in the region during the COP30 summit in November. The 30th edition of the marquee United Nation climate conference will be held this year in the northern Brazilian city of Belem. Ferreira said Natura isn't on the hunt for deals in the short term, but may analyze acquisition opportunities after its Avon International unit completes the bankruptcy protection process it initiated last August. Avon 'should not burn as much cash as it burned last year, including the restructuring costs,' Ferreira said. Asked about a possible buyer for Avon, he said Natura is considering all options, including the sale of assets in parts or in a block. By Rachel Gamarski Learn more: Natura's Losses Rise to $181 Million But Margins Grow In its first-quarter results, the Brazilian beauty company's losses widened and revenue dropped, but grew margins as it continues a turnaround plan that has seen it shed Aesop and The Body Shop.
Bloomberg
3 days ago
- Business
- Bloomberg
Natura CEO Bets on Mexico as Cosmetic Maker Recovers from Rout
Natura & Co. is targeting the Mexican market in its push to boost sales as Chief Executive Officer João Paulo Ferreira works to reinvigorate the cosmetics company after disappointing earnings at the end of last year. 'We will grow disproportionately in Mexico,' Ferreira said in an interview. Natura plans to expand its presence in the country from its current footprint of 16 stores and stands, as well as its online operation and its network of more than 500,000 beauty consultants that offer its products in the country. Ferreira declined to provide any targets for store openings.
Yahoo
12-05-2025
- Business
- Yahoo
Natura &Co Latam rebounds from last quarter and achieves 15% profitability in Q1-25
In the period, Natura &Co Latam recorded a recurring EBITDA margin of 15% (13.9% adjusted for non-operating impacts), expanding +50 bps year-on-year and exceeding the 9.6% result reported last quarter. Gross margin reached 67.1% in Latin America, driven by solid year-on-year expansion in the countries where the Natura and Avon brands have already been integrated (Wave 2) Net revenue of the Latin American business unit grew 12.2% in CC compared to Q1-24, sustained by the strong performance of the Natura brand SíO PAULO, May 12, 2025 /PRNewswire/ -- Natura &Co (B3: NTCO3), the leader in beauty and personal care in Latin America1, ended the first quarter of 2025 with revenues of R$5.3 billion in the region, up 12.2% compared to Q1-24 in constant currency (CC) (+4.1% excluding Argentina). Total revenue was R$6.7 billion, including R$1.4 billion from Avon Internacional2. In the Latin American operation, the recurring EBITDA margin reached 15% (13.9% adjusted for non-operational impacts), exceeding the result of 9.6% reported in the last quarter and growing +50 bps year-on-year. The profitability improvement reflects the expansion in gross margin, which reached 67.1% in Latin America, driven by expansion in the countries where the integration of the Natura and Avon businesses has already been implemented, the so-called Wave 2. Greater efficiency in the management of general and administrative expenses also contributed to the evolution of the margin. The Q1-25 results were driven by the Natura brand performance, which recorded a revenue increase of 8.2% in Brazil and 38.4% in the Hispanic countries (mid-teens excluding Argentina). In Brazil, robust retail growth was driven by strong same-store sales performance and a consistent pace of new store openings, reaching 149 owned stores (+34 compared to Q1-24) and 869 franchises (+88 compared to Q1-24). In digital, sales increased by 34.7% year-on-year, with the brand's share of voice on social networks growing, leading the main platforms in the beauty category. "Latin America's performance this quarter contributes to our ultimate goal of achieving year-on-year expansion of the recurring EBITDA margin to by the end of 2025. Efficiencies from Wave 2 will continue to be partially reinvested in marketing and other strategic fronts, with some volatility between quarters, but on a more balanced basis compared to previous years, given that investments are better spread over the periods. In addition, the implementation of Wave 2 in Mexico and Argentina is expected to be completed in 2025. As a result, the transformation cost cycle will end this year and should not exceed the total recorded in 2024," commented Natura's CEO, João Paulo Ferreira. From an ESG perspective, one of the highlights of the period was that the Celaya plant in Mexico became the first Natura facility in Latin America to be fully powered by certified solar energy. The initiative is part of the company's decarbonization strategy and has already reduced carbon emissions by approximately 1,000 tons. The plant is expected to reduce its annual emissions by 83%, aligning efficiency gains with climate goals."As we move forward on the journey of simplifying our structure and focusing on operations in Latin America, our commitment to the ESG agenda remains unwavering, and it generates a competitive advantage to the business, reflected on continuous progress in our social and environmental goals," said the CEO. This year, Natura was recognized for the 14th time as one of the World's Most Ethical Companies by the Ethisphere Institute. It also received, among other awards, the "Corporate Sustainability Bond of the Year" from Environmental Finance, highlighting its leadership in sustainable finance. Natura &CoNatura &Co's net loss in Q1-25 decreased by 84% compared to the same period in 2024, reaching R$151 million, against R$935 million in the previous year. The company's simplification journey, which began three years ago, has taken an important step forward which reinforces its focus on Latin America. In March, the incorporation of Natura &Co Holding by Natura Cosméticos was announced, a proposal approved by shareholders on April 25. The full results report and financial statements can be accessed at Q1-25 Earnings Conference Call on 5/12 at 8:00 AM (New York time) / 1:00 PM (London time) at About Natura &Co Natura &Co is a purpose-driven group that brings together Natura and Avon brands, connecting with consumers through a network of 4.8 million Beauty Consultants and Representatives, over 1,000 stores, and more than 19,000 employees. The group operates through two business units: Natura &Co Latin America, which oversees the global management of Natura and Avon across Latin America, and Avon International, which leads the brand's operations in Asia, Europe, Oceania, and Africa. 1 Source: Euromonitor International; umbrella brand Natura , Beauty and Personal Care 2025ed; retail value sales (RSP), 2024 data 2 In 2024, Avon International was accounted for as discontinued operations until it was reconsolidated on December 4. View original content: SOURCE Natura &Co
