Natura&Co has new loss in the 3rd quarter and withdraws projections

Cosmetics maker Natura&Co on Wednesday night reported its third consecutive quarterly loss and discontinued projections as it deepens restructuring efforts.

Hard hit by the global drop in demand in the face of high inflation, the owner of the Natura, Avon International, Aesop and Body Shop brands recorded a net loss attributable to controllers of R$ 559.8 million in the quarter ended in September.

In the same period last year, Natura&Co had a profit of R$ 272.9 million.

The company’s net revenue fell 6% year-on-year to R$9 billion, but grew 2.2% in constant currency. Still, even in constant currency, Body Shop sales were down 20% and Avon International’s 8%.

Natura&Co, which announced Fábio Barbosa as its new chief executive in June, has been reviewing its business model and its presence in underperforming markets. The company also signaled a possible initial public offering of shares (IPO) of Aesop in the United States.

Barbosa said in a statement that the results “are in line” with the expectations disclosed to the market in the previous quarter and the reorganization “has made good progress”.

The company’s shares fell 48% year-to-date.