Natura navigates domestic headwinds as Hispanic markets drive growth

Consolidated EBITDA reached BRL 620 million, yielding a 12% margin that signals a 470 basis point recovery from the previous quarter. Hispanic markets proved to be the primary engine of this momentum, posting a 7.2% growth rate in constant currency. The Natura brand performed particularly well in the region, rising 12.3%, while Avon added 4.7% to the regional tally. These gains were bolstered by a new operating model that successfully lifted the EBITDA margin in Hispanic markets to 7.6%.

In Brazil, the scenario remained complex. Product unavailability and a temporary tax burden in São Paulo weighed on performance, resulting in a 16.4% margin. Despite these hurdles, CEO João Paulo Ferreira emphasized that the operational adjustments—ranging from supply chain rebalancing to a refreshed franchise model—are essential for long-term scalability. The firm maintained a solid financial footing, reporting a positive free cash flow of BRL 342 million and a slight reduction in leverage to 2.06x.

Beyond financial metrics, the company continues to lean into its sustainability commitments. Natura surpassed its 2030 target for partnerships with agroextractive communities, reaching 46 groups. A specific circular economy initiative involving reverse logistics for World Cup album release liners underscored this strategy, generating BRL 4.45 million in revenue and driving significant growth in average ticket values across company stores and franchises.