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On Wednesday, the Brazil-based cosmetics manufacturer Natura & Co announced a 292% growth in fourth-quarter net income, coming as an upshot of structural modification and remarkable collaborative scope with Avon.
The beauty company discloses a net profit worth 695.4 million reais ($138.74 million), surpassing the estimated 161 million reais from Refinitiv.
The Body Shop, Avon, and Aesop are just some of the brands owned by Natura. The most recent update showed a 3% decrease in revenue compared to last year, but an estimated 11.5 billion reais worth for Refinitiv’s calculations aligns with the actual amount.
Natura’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) margin hit 13.3%, increasing 90 basis points from the comparable quarter the previous year.
According to the company, synergies from its Avon acquisition in 2019 have advanced rapidly than anticipated, “with about 50% of the target already achieved at the end year, helping Natura & Co to offset raw material inflation and negative effects of the exchange rate.”
The CEO of Natura, Roberto Marques, told a media outlet that they will postpone their New York Stock Exchange (NYSE) listing for now but still plan on moving forward with it.
He said, “For everything that is happening, expectation of a very volatile market, with a lot of uncertainty … maybe it’s not the time to do it now.”
Marques further said that the company is experiencing an arduous quarter because of the Ukrainian crisis, which has caused them to turn down expenses by all accounts for expected volatility.
He has said that they are halting all shipments from their Avon factory in Russia and carrying volumes to the Poland plant. They’ve stopped operations at Body Shop and Aesop stores there as well.
For context, $1 is equal to 5.0123 reais.
