Recent highlights include strengthened capital structure,
launch of &Co Pay financial services platform and certification
of Aesop as a B Corp™
SÃO PAULO, Nov. 12, 2020
/PRNewswire/ -- Natura &Co (NYSE – NTCO; B3 – NTCO3)
posted a strong growth in revenue in the third quarter,
significantly outperforming the global Cosmetics, Fragrance, and
Toiletries market, as the sustained ramp-up in digital sales across
all brands continued. Consolidated sales stood at R$10.4 billion, up 31.7% in Brazilian Reais and
11.6% at constant currency.
The Group also strengthened its capital structure with the
successful completion in October of a US$1
billion capital raise. The transaction allows for balance
sheet optimization by accelerating deleveraging while also enabling
investments to drive growth in strategic priorities including
Avon's integration, Group
digitalization, geographic expansion, and the Group's 2030
Sustainability commitments.
A key sustainability milestone included Aesop's certification as
a B CorpTM; joining Natura, The Body Shop, and a
movement of businesses dedicated to achieving the highest social,
economic, and environmental standards.
Natura &Co also took another step forward in its continued
digitalization with the launch of &Co Pay, its proprietary
financial services platform. &Co Pay will help drive
productivity to consultants and representatives by allowing them
access to key financial services, promoting digital and financial
inclusion. Launching first in Latin
America, &Co Pay will be rolled out globally within the
next couple of years.
Roberto Marques, Executive
Chairman and Group CEO of Natura &Co, declared: "Enabled by
continued digitalization, our brands delivered strong results in
the third quarter, with significant growth in sales and margin
improvement. In an environment that has remained challenging
throughout the world as a result of the Covid-19 pandemic, we
delivered superior results compared to the CFT market both globally
and in Brazil. Our performance
this quarter attests to the strength of our fundamentals, our
unparalleled Direct-to-Consumer reach, and the resilience of our
omnichannel, multi-brand model."
Natura &Co's consolidated net revenue growth was driven by
outperformance by both Natura and Aesop, solid growth by The Body
Shop, and growth in sales in Reais by Avon. Adjusted EBITDA was R$1,547.3 million, with margin of 14.8%, a gain
of 330 basis points, driven by revenue growth, improved gross
margin, and cost discipline across all businesses.
Even as many retail markets reopened, the Group experienced
continued strong acceleration in digital social selling and
e-commerce, with total e-commerce sales growing more than 115% in
the quarter vs. the same period last year. At Natura and
Avon combined, e-commerce sales
grew more than 80% through consultants sharing their online stores.
Online sales at Aesop were up 264%, and e-commerce sales at The
Body Shop grew 103%. Digital social selling also progressed. At
Avon globally, sales via
representatives sharing e-brochures more than doubled, and the
number of consumers accessing Avon's e-brochure increased nearly 70% vs.
Q3-19. At Natura, content sharing grew by more than 170% since the
first quarter of this year, and the number of orders increased 45%
vs. Q3-19 through the more than 1 million consultant online stores
(+75% vs. Q3-19).
Natura &Co Latam's net revenue increased by 29.5% in BRL.
The Natura brand's net revenue rose by a very strong 41.2% in BRL,
supported by both Brazil (+30.5%),
outperforming the domestic CFT market, and Hispanic Latam (+65.7%).
The Avon brand's net revenue
increased by 19.3% in BRL (+9.9% at CC). Excluding the cyber
incident effect that shifted R$390
million in sales to Q3, Avon sales were up 3.3%, including +6.1% in
Brazil, its first growth in the
country since Q4-18, thanks to increased representative numbers and
higher activity. Adjusted EBITDA for Natura &Co Latam was
R$1,002.8 million, up 96.1%, and
adjusted EBITDA margin was 16.5% (+560 bps).
Avon International, which comprises Avon's activities in 50 markets throughout
Europe, Asia, Africa,
and the Middle East, saw its Q3
net revenue grow by 22.5% in BRL as most markets showed signs of
recovery. Excluding the positive phasing effect of R$60 million from the cyber incident, growth was
19.5%. Avon's new brand campaign,
Watch Me Now, premiered in September across more than 30 countries.
Adjusted EBITDA was R$183 million,
with 7.4% margin (-200 bps).
The Body Shop's net revenue increased 51.9% in BRL, driven by a
very strong performance in online and direct sales. Consumers
continued to shift to e-commerce and At-Home (direct sales), with
growth of more than 103% and 333%, respectively, significantly
offsetting slower recovery of retail sales. At the end of the
quarter, 97% of stores were reopened. Adjusted EBITDA in Q3 was
R$308.3 million, with adjusted margin
of 22.3% (+360 bps).
Aesop continued its success story from Q2, with strong
double-digit growth in both sales and profitability in Reais. Net
sales grew 67.2% in Q3 as a 264% increase in digital sales helped
offset ongoing partial retail closures related to Covid-19 in major
markets such as the US and Australia. 95% of the retail network had
reopened at the end of the quarter. EBITDA in Q3 grew by 121.6% to
R$154.4 million, with margin up 770
basis points to 31.3%. Aesop's commitment to sustainable business
practices was underscored by its certification as a B
CorpTM on November
9.
About Natura &Co
Natura &Co is a global, purpose-driven, multi-channel and
multi-brand cosmetics group which includes Avon, Natura, The Body Shop and Aesop. Natura
&Co posted net revenues of R$ 14.4
billion in 2019 and R$32.9
billion on a proforma basis, including Avon. 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.
Press Contact
Brunswick Group
NATURA&CO@brunswickgroup.com
Tristan Bourassin: +1 (917) 200 8667