Natura &Co Latam Boosts Profitability to 15% in Q1 2025 on Strong Brand Integration and Retail Gains

THE WHAT?  Natura &Co Latam has reported a significant rebound in Q1 2025, achieving a 15% recurring EBITDA margin and 12.2% revenue growth in constant currency, driven by operational efficiency and brand performance across the region.

THE DETAILS  In the first quarter of 2025, Natura &Co Latam posted net revenue of R$5.3 billion, up 12.2% in constant currency versus Q1 2024. Recurring EBITDA margin reached 15% (13.9% when adjusted for non-operational impacts), a notable recovery from 9.6% in the previous quarter. Gross margin expanded to 67.1%, attributed to increased efficiency and benefits from the Wave 2 integration of the Natura and Avon brands across multiple Latin American markets.

In Brazil, the Natura brand recorded an 8.2% sales increase, while Hispanic markets grew 38.4% (excluding Argentina, mid-teens). Growth was supported by stronger retail performance—149 owned stores and 869 franchises—and a 34.7% year-on-year rise in digital sales. The company also noted continued momentum in social media engagement across key beauty platforms.

THE WHY? The first-quarter results indicate growing profitability and operational discipline following the consolidation of Natura and Avon operations in key markets. With efficiency gains and margin improvement, Natura &Co Latam appears to be entering a more stable post-integration phase, even as it completes Wave 2 rollout in Mexico and Argentina. Retail and digital investments are helping to counter macroeconomic volatility, particularly in emerging markets. ESG efforts—including a solar-powered facility in Mexico—also remain a strategic focus as part of the company’s long-term differentiation in the personal care space

Source: PR Newswire

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