Natura reports net income of BRL 445 million in the second quarter

Natura reports net income of BRL 445 million in the second quarter

• Corporate streamlining and probable sale of Avon International within 12 months provide greater visibility into Latin America's results
• Positive cash generation driven by countries with more mature integration between Natura and Avon brands (Wave 2) and improved working capital dynamics
• Recurring EBITDA margin in Latin America of 14.7% reinforces commitment to expand profitability in the full year 2025

SÃO PAULO, Aug. 11, 2025 /PRNewswire/ -- Natura (B3: NATU3) ended the second quarter of 2025 (Q2-25) with net income of BRL 445 million in Latin America. When including Avon's operations outside Latin America, now classified in the financial statements as an asset held for sale, net income was BRL 195 million. The positive result reflects the strength of the Natura brand in Latin American markets, advances in the Company's corporate streamlining, and the ongoing integration of the Natura and Avon brands in the region—known as Wave 2—which is expected to be completed by year-end.

"We advanced our simplification and restructuring strategy, further strengthening our business fundamentals and leadership in Latin America. Following a solid Q1-25, we delivered another quarter of healthy results. Revenue accelerated in our main market, Brazil, with the Natura brand outperforming the market despite the ongoing challenges still faced by the Avon brand. Looking ahead, even amid slowing consumption, we remain absolutely confident in our ability to deliver annual profitability growth," said João Paulo Ferreira, CEO.

Q2-25 net revenue was BRL 5.7 billion, up +5.5% in constant currency (+2% excluding Argentina), driven by Natura Brazil's performance (+10.3%) and the growth of the brand in Hispanic markets (+17.8%, or low single digit excluding Argentina). This result was offset by Avon's performance in Brazil (-12.9%), the start of the integration roll-out in Mexico—completed in May—and preparations for Wave 2 in Argentina, which took place in July.

Recurring EBITDA margin of 14.7% in Latin America was up by 10 bps compared to the same period in 2024, mainly driven by an improvement in gross margin (+80 bps), due to greater efficiency in markets where the integration with Avon is already more mature. Compared to Q1-25, the margin fell by 100 bps, a temporary fluctuation mainly due to the implementation of Wave 2 in both Mexico and Argentina. As in the last quarter, Q2-25 profitability supports full-year margin expansion, which is expected by year-end 2025 when implementation costs related to the brand's integration in the region come to an end.

Another highlight was the BRL 408 million cash generation from Latin American operations during the first half of the year, despite the typical seasonality of the period, which historically demands cash consumption.

Following accounting criteria, Avon International and Avon in Central America (CARD) are now classified as assets "held for sale" due to the high possibility of these assets being negotiated within 12 months. The Company had already announced to the market that it is exploring strategic alternatives for Avon outside Latin America, including a potential spin-off  or sale.

Therefore, as from Q2-25 on, the financial information will more clearly reflect the core business in Latin America and the Company's operating reality.

Social and environmental impact
In addition to delivering healthy financial results, the Company advanced its sustainability agenda. Natura earned an "A" rating for both Climate and Supplier Engagement from CDP — an international platform that evaluates the transparency and actions of public and private organizations in addressing climate change. This achievement places Natura among a select group of global leaders to have earned this recognition.

Natura also recently unveiled its new Vision 2050, setting more ambitious socio-environmental commitments and aiming to become a fully regenerative business within 25 years.

The full earnings release and financial statements can be accessed at ri.natura.com.br/en/

About Natura
Founded in 1969, Natura is a Brazilian multinational and the beauty and personal care leader in Latin America. Recognized for 11 consecutive years in the Merco ranking as the company with the best reputation in Brazil and the most responsible in ESG, Natura has been a pioneer for over 25 years in using bioactives from Brazil's socio-biodiversity in cosmetics through partnerships with extractive communities in the Amazon. This work benefits thousands of families and contributes to the conservation of 2.2 million hectares of forest. In 2014, Natura became the first publicly traded company to receive the B Corp certification from B Lab, which recognizes businesses worldwide that combine profit with positive social and environmental impact. Operating in 14 countries in Latin America, Natura reaches consumers through more than 3 million beauty consultants, e-commerce platforms, the Natura app, and over 1,000 stores. For more information, visit www.natura.com.br or follow the company on LinkedIn, Facebook, and Instagram.

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SOURCE Natura &Co