SÃO PAULO, Aug. 12,
2021 /PRNewswire/ -- Natura &Co (NYSE – NTCO; B3
– NTCO3) recorded another quarter of double-digit revenue growth in
the second quarter, again outperforming the global Cosmetics,
Fragrance, and Toiletries market, while net income grew strongly to
R$235 million, supported by new gains
from Avon's integration.
Consolidated net revenue in Q2 stood at R$9.5 billion, up 36.2% in Brazilian Reais and
31.7% at constant currency, driven by double-digit sales growth at
all four of the Group's iconic brands and businesses. Adjusted
EBITDA, which excludes transformation costs, costs to achieve
synergies, Avon-related
acquisition effects and non-recurring effects, rose 31.9% to
R$811.2 million, with margin of 8.5%.
Adjusted EBITDA margin was down 30 basis points year-on-year as
last year's Q2 margin was supported by one-off pandemic-related
effects of cost containment and government support. Excluding these
effects, adjusted EBITDA margin would have improved by 210 basis
points this quarter. In first-half 2021, adjusted EBITDA margin
reached 9.4%, +120 basis points above last year in the same
period.
This strong Q2 performance was driven by growth across the board
and strong sales in digital social selling and e-commerce across
all brands, despite continued impacts from Covid-19 in key markets.
Digitally-enabled sales, which include online sales (e-commerce +
social selling) and relationship selling using our main digital
apps, reached 51% of total revenue. While the reopening of stores
led to a rebalancing between channels, with retail regaining some
momentum, notably at The Body Shop and Aesop, online sales are four
times above their Q2-19 pre-pandemic levels and represented 10% of
total sales (15% in Q2-20, at the height of the pandemic). &Co
Pay, our digital payments platform, showed encouraging expansion at
Natura Brazil, with accounts increasing by 50% to more than 220,000
in six months and total payment volume ("TPV") reaching
almost R$2.0 billion in the first
half.
Avon's integration is
progressing well. Beyond strong revenue growth by the Avon brand in
Brazil, Hispanic Latam and Avon
International, we saw market share gains vs both 2020 and 2019 in
key markets. Pilots of the new commercial model showed positive
initial results and overall representative satisfaction has
increased. Synergies achieved, at US$76.5
million in the first half, are in line with estimates. Avon
International's Transformation Plan is advancing and its EBITDA
margin remained broadly stable despite higher investments in
digital, IT and marketing to drive future growth.
In June, Natura &Co also marked the first anniversary of its
Commitment to Life – 2030 Sustainability Vision. In the quarter,
the group announced the launch of a new data tool to aid
conservation of the Amazon and unveiled its ambitions to be the
first multinational to ensure that its workforce reflects the
demographic composition of the societies in which it operates.
Roberto Marques, Executive
Chairman and Group CEO, declared: "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. 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."
Natura &Co Latam's net revenue increased by 39.2% in BRL in
Q2. The Natura brand's net revenue rose by 25.0% in BRL, with
growth both in Brazil (+8.0%),
supported by strong Mother's Day and Valentine's Day campaigns, and
Hispanic Latam (+67.8%). Mexico
became Natura's biggest market in sales after Brazil. Online sales at the Natura brand are
4.3 times their pre-pandemic levels. The Avon brand's net revenue increased by a strong
59.3% in BRL, with Brazil up 26.2%
and Hispanic Latam up 83.0%. Adjusted EBITDA for Natura &Co
Latam surged 60.2% to R$597.8
million, with margin of 10.8%, up 140 bps.
Avon International posted strong Q2 net revenue growth of 33.6%
in BRL, with market share gains in its key countries and
categories. Online sales are 2.7 times their pre-pandemic level.
Adjusted EBITDA was up 30%, to R$94.3
million, with 4.3% margin (-10 bps), as strong sales
leverage and transformation savings offset the impact of higher
inflation and increased investments in areas such as digital and IT
to accelerate future growth.
The Body Shop posted another strong quarter, with net revenue
increasing 24.3% in BRL, supported by strong growth in retail and
with growth in all of its regions despite 18% lost store days in
Q2. Online and The Body Shop At Home sales combined are 2.6 times
pre-pandemic levels. EBITDA in Q2 rose 9.2% to R$158.6 million, with margin of 13.0% (-180 bps).
Excluding pandemic-related one-off effects in Q2-20 of cost
containment and government support, EBITDA margin would have
increased 450 basis points.
Aesop posted another outstanding performance, with strong
double-digit growth in both sales and profitability. Net sales grew
47.0% in Q2 in BRL, with growth in all regions, led by Asia and the Americas, despite 11% lost store
days. E-commerce sales are 2.3 times their pre-pandemic level.
EBITDA rose 14.8% to R$117.8 million,
with margin of 21.0% (-580 bps). Excluding one-offs related to the
pandemic, EBITDA margin would have increased 90 basis point as
well.
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