THE WHAT? Natura &Co has reported its results for the first quarter of fiscal 2024. The Brazilian cosmetics maker saw sales rise 11 percent in constant currency (-5.7 yoy in BRL) to BRL6.1 billion. The Latam division put on 3.1 percent in CC; Natura Brazil was named as the highlight.

THE DETAILS Avon Latam continued to deliver soft top-line, with revenues down 11.3 percent in Brazil, although Avon Brazil showed improving top-line trends throughout the quarter, Natura &Co said. Avon International had a slow start, with revenue dropping 4.7 percent yoy in CC.

The group reported improved profitability, thanks to growing gross margin, which reached 65.2 percent in the three months to March 31, 2024, up 90 bps versus the prior-year quarter, driven by the strong gross margin expansion from Latam (+170 bps). Adjusted EBITDA reached BRL 683million, and adjusted EBITDA margin expanded 110 bps yoy.

THE WHY? Fabio Barbosa, Group CEO of Natura &Co, comments, “We are encouraged that the first quarter of the year showed positive recurring results with a consolidated margin expansion of 110 bps vs previous year, driven by solid results from Natura &Co Latam, benefiting from the Natura and Avon integration in the region, coupled with richer country and brand mix. This more than offset the margin contraction at Avon International amid sales deleveraging.”