Natura Achieves BRL 445 Million Net Income in Q2 Highlights

Natura's Financial Performance in Recent Quarter

Natura recently disclosed its impressive performance in the second quarter of 2025. The company reported a noteworthy net income of BRL 445 million, demonstrating its strong presence in the market. This robust financial outcome highlights the successful integration of its operations across various regions, specifically focusing on Latin America.

Corporate Developments and Brand Integration

With plans to streamline operations, Natura is considering the potential sale of Avon International within the next year, which aims to enhance the visibility of its results in Latin America. This strategic move underscores the company's commitment to maximizing profitability while navigating through the complexities of the beauty market.

The significant cash generation, driven by a more mature integration between Natura and Avon brands, notably contributes to the company’s financial successes. The company’s recurring EBITDA margin has achieved a commendable rate of 14.7% in the region, further reinforcing its intent to enhance profitability by 2025.

Growth Across Key Markets

Natura's growth is particularly evident in its primary market, Brazil, where net revenue soared by 5.5% in constant currency terms. The strong growth momentum of the Natura brand has outperformed market expectations, showing progress despite challenges with the Avon brand. The company remains optimistic about maintaining profitability growth in the coming years, as reflected in the words of João Paulo Ferreira, CEO.

Earnings Breakdown

The quarterly earnings report also indicated that Natura’s net revenue surged to BRL 5.7 billion, with notable contributions from both local and Hispanic markets. While there was a drop in Avon’s performance in Brazil, the positive trends in other areas offset this decline, showcasing the brand's resilience.

Maintaining Profit Margins

The recurring EBITDA margin, though slightly lower compared to the preceding quarter, indicates a temporary fluctuation attributed to the ongoing integration efforts in Mexico and Argentina. Natura is optimistic that these operational adjustments will yield favorable outcomes, supporting margin expansion as the brand integration phase concludes.

Cash Generation and Strategic Decisions

A remarkable BRL 408 million in cash was generated through operations in Latin America in the first half of the year, highlighting the company's capacity to navigate seasonal fluctuations while maintaining financial health. As Avon International's assets are now labeled as "held for sale," Natura is gearing up for a new chapter in their strategic road map.

Commitment to Sustainability

Natura has not only focused on financial performance but has also made significant strides in sustainability. The company received an “A” rating from CDP for its efforts in climate action and supplier engagement, placing it among global leaders in sustainability. Their newly launched Vision 2050 aims to set even more ambitious socio-environmental commitments, envisioning a fully regenerative business model within the next 25 years.

About Natura

Established in 1969, Natura is a pioneering Brazilian multinational known for its leadership in the beauty and personal care sector throughout Latin America. The company has consistently been recognized for its ethical practices and commitment to environmental sustainability. With its innovative use of bioactives from Brazil's diverse ecosystems, Natura not only supports local communities but also contributes to vital conservation efforts.

Natura's operations extend to 14 countries across Latin America, and its reach includes over 3 million beauty consultants and an extensive retail presence. The firm’s dedication to embedding social impact alongside profitability illustrates its unique approach to business, setting an example for others in the industry.

Frequently Asked Questions

What was Natura's net income in the second quarter?

Natura reported a net income of BRL 445 million in the second quarter of 2025.

What are the company’s plans regarding Avon International?

Natura may sell Avon International within the next 12 months as part of its corporate streamlining strategy.

What factors contributed to Natura's revenue growth?

The revenue growth was primarily driven by strong performance in Brazil and growing presence in other Hispanic markets.

How has Natura fared in terms of sustainability?

Natura earned an “A” rating from CDP for its climate and supplier engagement efforts, demonstrating its commitment to sustainability.

What is Natura's Vision 2050 initiative?

The Vision 2050 initiative aims to set ambitious socio-environmental commitments, striving to become a fully regenerative business within 25 years.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

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