Today, Natura &Co reported robust financial performance in Q4 2024, with consolidated net revenue reaching BRL 7.7 billion ($1.34 billion), marking a 16.1% increase in constant currency terms (11.4% excluding Argentina) and a 63.1% rise in Brazilian Reais. This growth was primarily driven by the strong performance of the Natura brand across Latin America.
As for FY2024, Natura &Co consolidated net revenue recorded BRL 24.08 billion ($4.19 billion), marking a 12.4% increase in constant currency terms.
As for brands, Natura Brazil brand experienced a 21.1% year-over-year revenue increase, propelled by productivity and volume gains. This growth was largely attributed to enhanced cross-selling strategies and significant investments in marketing and innovation. The beauty market’s healthy trend during the quarter also contributed to this performance.
In Hispanic Markets (excluding Argentina), Natura Brazil brand reported mid-teens revenue growth, reflecting accelerated performance, particularly in Mexico, and improving trends in countries where Wave 2 integration was implemented.
As for Avon Performance, Avon Brazil’s revenue declined by 1.0% year-over-year in Q4 2024, following a 14.4% increase in Q3 2024. This deceleration was primarily due to a challenging comparison base. However, on a full-year basis, Avon Brazil maintained stability, with encouraging results in core categories such as makeup and skincare, and initial positive trends in fragrances following the relaunch of the “Far Away” perfume in early Q4 2024.
Avon Hispanic Latam revenue increased by 1.7% year-over-year; however, excluding Argentina, there was a 16.5% decline. While countries where Wave 2 was rolled out showed a lesser decline compared to Q3 2024, both Mexico and Argentina faced challenges due to the integration process of Natura and Avon in these regions. In Argentina, activities were impacted by the closing of a distribution center, and in Mexico, by initial portfolio adjustments.
In Distribution Channel Breakdown, the digital sales, encompassing online sales and social selling, increased by 19.7% year-over-year for the Natura brand in Brazil. Digital channels accounted for 9% of total sales, up 1 percentage point from the previous quarter. This growth was bolstered by the launch of a new digital platform in Q2 2024 and the successful “Natura Friday” campaign.
In Retail channel, the sales in Brazil demonstrated robust growth, driven by solid same-store sales, particularly from owned stores, and a strong pace of store openings. The Natura brand expanded to 145 owned stores (an increase of 33 compared to Q4 2023) and 863 franchised stores (an increase of 90 compared to Q4 2023).
In Non-Direct Selling Channels, combining digital and retail channels, non-direct selling channels represented 16% of the brand’s revenues in Q4 2024, up from 12% in Q3 2024. This increase is attributed to the strong gift seasonality in the fourth quarter.
Fábio Barbosa, Group CEO of Natura &Co, highlighted 2024 as a key year in the Group’s simplification strategy, marked by the successful completion of Wave 2 in Brazil and the voluntary restructuring of API. The company supported Avon Products Inc.’s Chapter 11 process with a USD 34 million cash payment and acquired Avon International entities outside the U.S. for USD 125 million.
For Avon International, Natura &Co continues to explore strategic alternatives, including a potential sale, while focusing on restructuring and reducing cash outflows. The company remains committed to improving Latam’s margins and free cash flow, simplifying its corporate structure, and optimizing capital allocation for shareholder returns.
