SÃO PAULO, March 4, 2021
/PRNewswire/ -- Natura &Co (B3 – NTCO3; NYSE – NTCO) recorded
another quarter of revenue and profit growth in the fourth quarter,
again significantly outperforming the global Cosmetics, Fragrance,
and Toiletries market, driven by a continued ramp-up in digital
sales across all brands that helped offset the continued impact of
the COVID-19 pandemic.
Consolidated net revenue in Q4 stood at R$12 billion, up 24.3% in Brazilian Reais and
6.4% at constant currency, driven by sales growth in BRL by all
four of the Group's iconic brands. Adjusted EBITDA was up by 12.3%
to R$1.5 billion, with margin of
12.4%. Net income rose 200.7% to R$177.4
million.
Natura &Co's strong Q4 performance was powered by further
growth in digital social selling and e-commerce, with total group
digital sales up 79% and all brands recording their highest-ever
e-commerce sales. Aesop's total online sales grew 190% in the
quarter and reached almost 30% of its revenue, doubling over the
previous year, and The Body Shop rapidly pivoted to online and
At-Home channels, which combined grew more than 130%, representing
40% of total sales. Social selling continues to grow, with
e-brochure revenue up nearly 90% vs. Q4-19 at Avon globally. At Natura in Latin America, the number of consultants
sharing content grew by more than 300% since Q1 and the number of
orders through the 1 million+ consultant online stores in the
region increased by 60% vs. Q4-19.
After unveiling its 2030 sustainability vision, Commitment to
Life, Natura &Co reached a new milestone by becoming a B-Corp,
becoming the world's biggest certified company. It also achieved
important targets in sustainability in 2020. The Natura brand
avoided 32% in emissions, which is equivalent to 162,000 tons of
CO₂ emissions of greenhouse gas and all four brands launched
their plans to become Net Zero by 2030 on Scopes 1, 2 and 3. Natura
&Co invested nearly R$500 million
in 2020 in key causes (such as fighting COVID-19, support to women,
sourcing and benefit sharing with communities, among others).
Finally, Natura &Co replaced 2,489 tons of virgin plastic for
recycled alternatives, equivalent to more than 120 million PET
bottles.
A key highlight of the quarter was the strengthening of Natura
&Co's capital structure with the successful completion in
October of a US$1 billion capital
raise. This allowed the Group to significantly deleverage its
balance sheet, and it ends 2020 with a net debt to EBITDA ratio of
0.97 times.
Natura &Co also made further advances in its integration of
Avon, one year after it became
part of the Group's family of brands. Avon's transformation and brand rejuvenation
continues, with a new commercial model being rolled out. Synergies
from the Avon integration reached
US$25.5 million in Q4 and stood at
US$73.3 million in the full year,
ahead of our estimates.
Roberto Marques, Executive
Chairman and Group CEO of Natura &Co, declared: "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. 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."
Natura &Co Latam's net revenue increased by 20.5% in BRL in
Q4. The Natura brand's net revenue rose by 24.7% in BRL, with
strong growth both in Brazil
(+16.2%), and Hispanic Latam (+44.5%). The Avon brand's net revenue increased by 16.2% in
BRL, with growth in Brazil for the
second consecutive quarter (+4.9% in BRL), driven by higher
activity and productivity, and a resumption of growth in Hispanic
Latam (+23% in BRL). Adjusted EBITDA for Natura &Co Latam was
R$774.1 million, up 33.6%, and
adjusted EBITDA margin was 12.2% (+120 bps).
Avon International, posted Q4 net revenue growth of 12.1% in
BRL, with a particularly strong performance in the UK, where it
recorded sales growth of 3% in constant currency and gained market
share for the third consecutive quarter. Adjusted EBITDA was
R$118.9 million, with 4.1% margin
(-560 bps), reflecting investments in brand, digital and commercial
areas to accelerate future growth.
The Body Shop posted another strong quarter, with net revenue
increasing 48.4% in BRL. Consumers continued to shift to e-commerce
and At-Home (direct sales), with growth of 72% and 206% at constant
currency, respectively, significantly offsetting the impact of
store closures due to the pandemic, notably in Europe. Adjusted EBITDA in Q4 was R$492.8 million, with adjusted margin of 23.7%
(-290 bps).
Aesop posted another stellar performance in Q4, with strong
double-digit growth in both sales and profitability in Reais. Net
sales grew 62.1% in Q4, with a remarkable performance in
Asia and a 190% increase in
digital sales. EBITDA rose 66.1% to R$271.6
million, with margin up 90 basis points to 37.1%.
About Natura &Co
Natura &Co is a global, purpose-driven, multi-channel and
multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura
&Co posted net revenues of R$ 36.9
billion in 2020. The four companies that form the group are
committed to generating positive economic, social and environmental
impact. For 130 years Avon has
stood for women: providing innovative, quality beauty products
which are primarily sold to women, through women. Founded in 1969,
Natura is a Brazilian multinational in the cosmetics and personal
care segment, leader in direct sales. Founded in 1976 in
Brighton, England, by Anita Roddick, The Body Shop is a global beauty
brand that seeks to make a positive difference in the world. The
Australian beauty brand Aesop was established in 1987 with a quest
to create a range of superlative products for skin, hair and the
body.
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SOURCE Natura &Co