By Julia Wray

The Brazilian brand owner’s net revenues grew 2.2% at constant currency

<i>The Body Shop's Q3 2022 revenues have suffered as a result of post-lockdown channel rebalancing</i>

The Body Shop’s Q3 2022 revenues have suffered as a result of post-lockdown channel rebalancing

Natura & Co, the Brazilian cosmetics company, has revealed stable Q3 financials despite The Body Shop’s nearly 20% revenue nosedive.  

Natura & Co’s revenues increased 2.2% at constant currency to reach Brazilian reals R$9bn. 

The Avon and Aesop owner also reported an adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) margin of 8.6%, said to be stable compared with Q3 2021. 

Strong quarters from Aesop and Natura, and perky Latin America sales helped offset declining revenues for The Body Shop and the Avon International business. 

Natura & Co Latam’s net revenue grew 10.2% at constant currency with its Natura brand enjoying 18.5% growth across the region. 

Aesop net revenues, meanwhile, increased 21.5% at constant currency with all regions bar Europe delivering double-digit growth. 

The Body Shop’s net revenue was down 19.5% at constant currency in Q3, which Natura & Co attributed to post-lockdown channel rebalancing – specifically a decline in the at-home segment – and slow franchise recovery.

The Avon International business likewise saw Q3 net revenues decrease, in this case 8.1% at constant currency, with performance mainly impacted by the war in Ukraine, as well as low consumer confidence and eroding household purchasing power in Europe.

“Natura & Co posted results in line with our expectations, with top line trending better, while margins continued to be pressured by the challenging macroeconomic environment marked by high inflation, lower discretionary spending and foreign exchange impacts,” said Fabio Barbosa, Group CEO of Natura & Co.

The company is in the process of a reorganisation, integrating its Avon and Natura businesses in Latin America. 

It has also announced plans to close its Avon Suffern R&D facility in the US and outsource Avon’s IT infrastructure. 

For Aesop, Natura & Co said it is analysing strategic alternatives. 

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This includes the possibility of an IPO of Aesop, or a spin-off to separate Aesop from Natura & Co, potentially followed by a public offering, which was announced last month. 



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