Avon, E-Commerce Bring Natura Back to Profit

Brazilian cosmetics company Natura & Co, owner of Avon and The Body Shop, reported on Thursday a second-quarter profit of 235 million reais ($44.7 million), reversing a loss from a year earlier, thanks to e-commerce and integration with Avon.

Recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 3.4 percent to 630 million reais.

Despite the pandemic’s impact on the global beauty and personal care sector, the company reported that its four brands — The Body Shop, Avon, Aesop and Natura — posted higher sales.

CEO Roberto Marques said in a statement that Natura is on track to meet its 2023 goals. In April, the company set a target to reach between 47 billion reais and 49 billion reais in net revenue by 2023 and a double-digit margin EBITDA.

Moves towards social selling and e-commerce, a growing trend in the cosmetics sector, and online sales contributed to 51 percent of Natura’s total sales this year and helped the company offset the pandemic’s impact.

By Jimin Kang and Alberto Alerigi Jr; Editors: Chris Reese and Stephen Coates

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