Natura & Co. says The Body Shop not for sale
In a statement addressed to the financial markets authority, Brazilian cosmetics group Natura & Co., owner of Avon, Natura, Aesop and The Body Shop, has dismissed speculations that, due to the disappointing financial results it reported in recent quarters, it might consider selling cosmetics brand/retailer The Body Shop.
“The board of directors is not currently carrying out any specific evaluation regarding a possible spin-off of Aesop or the sale of The Body Shop,” the group said in the statement.
Natura & Co. also mentioned it is making various adjustments to its organisational structure in order to render it more streamlined and effective, and give greater independence to the group's various divisions. A strategy that was deployed after new CEO Fabio Barbosa took the reins in June.
Until then, Natura & Co. had been enjoying vigorous growth owing to its aggressive acquisition policy, as it bought Avon in 2020, after buying The Body Shop from L’Oréal in 2017. However its progress has been severely affected by the strong rise in inflation rates.
In Q2, closed on June 30, 2022, the Brazilian group recorded a revenue of $1.6 billion, down 8.6%, while sales for The Body Shop, which operates 3,000 stores worldwide, slumped by 25.3%.
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