Brazil’s Natura swings to loss as revenue shrinks across cosmetics lines
2023.03.13 22:26
© Reuters. FILE PHOTO: Workers handle cosmetic products at Natura’s distribution center in Sao Paulo, Brazil December 19, 2019. REUTERS/Amanda Perobelli
SAO PAULO (Reuters) – Brazilian cosmetic maker Natura & Co on Monday reported a fourth-quarter net loss of 890.4 million reais ($169.7 million), as it reported lower revenues across all its business lines.
The result compares the 695.5 million-real net profit it recorded a year earlier.
Natura reported net revenues down 11% at 10.39 billion reais, dragged by Avon International and The Body Shop which both posted reported revenues down more than 20%. However, in terms of constant currency, net revenues increased by 3%.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) shrunk 29% to 1.1 billion reais, hit by a 383 million reais non-cash impairment linked largely to Avon International, and to a lesser extent, The Body Shop, where it also booked some restructuring charges, the company said.
In a statement, Chief Executive Fabio Barbosa said the company was “resizing” The Body Shop, focusing on “efficiencies and key retail channels in light of the challenging channel mix changes that have taken place.”
Looking ahead, he added, Natura is focusing on improving profitability, cash flow, and making a return to growth.
“While we expect 2023 to be another challenging year, our focus on cash generation and improving the company’s capital structure will allow us to invest in our priorities,” he said.
($1 = 5.2467 reais)
