THE WHAT? Natura &Co has announced its results for the 2023 financial year. The Brazilian owner of Avon saw revenue drop 8.5 percent year-on-year in Brazilian Reais to BRL26.7 billion, although in constant currency, consolidated net revenue rose 3.5 percent versus 2022.  

THE DETAILS Gross margin reached 63.8 percent in 2023, up 410 bps versus the prior year. Net income totaled BRL 3 billion, an improvement from a net loss of BRL2.8 billion a year ago.

THE WHY? Fabio Barbosa, Group CEO of Natura &Co, explains, “2023 marked a pivotal chapter in the company’s history, setting the stage for the ambitious horizons we aim to reach in 2024. Notwithstanding a volatile macro environment in Latin America, we kicked-off Wave 2, our most important strategic project aiming to combine Avon and Natura brands in the region. Progress in Brazil, Peru and Colombia is underway, and the lessons learnt allowed us to implement a softer integration in Chile in early 2024.

“On our corporate strategy, we delivered a leaner holding structure as the Business units operate with more autonomy. Our simplification agenda has progressed markedly, thanks to the divestments of Aesop and The Body Shop, which allowed us to pay our debt and end the year with a strong net cash position. The positive free cash flow to firm, alongside our much stronger balance sheet, allowed us to start moving to a more optimal capital structure, and as a result we are announcing BRL 979 million in dividend payments for this year.