Natura wants to give more freedom to business units, says new president

Fábio Barbosa, former president of Santander Brasil and Grupo Abril, takes charge of Natura&Co with the mission of giving more freedom to the business areas, in a reorganization that aims to increase the agility of the cosmetics company’s units, he told journalists. this Wednesday (15th).

Barbosa was announced earlier as Natura’s new chief executive, replacing Roberto Marques, who will retire at the end of the year.

The company is coming off a higher-than-expected loss in the first quarter and a postponement of forecasts, affected in part by the impact of global inflation and the war in Ukraine on business.

The reorganization is in line with Natura’s strategy to “increase the accountability of its companies and brands – Natura, Avon, The Body Shop and Aesop – by transitioning to a simpler holding structure,” the company said.

During the interview with journalists, Barbosa mentioned that eventually the group does not need to have all brands operating in the same markets.

The company’s shares soared 10.3% on Wednesday morning, at R$ 15.44, leading the rise of the Ibovespa, which advanced 1.8%.

Even so, the company’s shares have accumulated a fall of about 39% in the year.

Barbosa said that Natura went through a period of capturing synergies after acquisitions in the last decade, with emphasis on the purchase of Avon.

Now, according to him, the “main goal is to give freedom to business areas, more autonomy with more responsibility”.

This greater freedom, he explained, will be reflected from the strategic planning and budgeting of each unit to the definition of promotions and product lines.

“We are losing agility. The companies (of the group) are resenting the fact that they cannot make decisions at the local level”, he said, adding that as president of the Natura&Co holding company, he will make more global decisions.

The presidents of each of the units were kept and there are no studies for exchange, said Barbosa.

Along with the role of president, Barbosa will lead a transition team, a process he hopes will be completed by the end of this year.

In terms of corporate structure, the changes extend to the chairmanship of the board, as the chief executive will no longer accumulate both functions.

The command of the collegiate will be with the founders, according to Barbosa. Marques will remain with a common seat to assist in the transition process.

Natura also stated that the group’s roles as leader of Sustainable Growth and leader of Transformation will cease to exist or will be reassessed in the new structure.

Barbosa, currently a director at the company and chairman of the People Committee, confirmed that the position of leader of Sustainable Growth was extinguished.