Natura reports strong revenue growth across all brands

By

Jennifer Braun

Published
Feb 22, 2019

Brazilian cosmetics giant Natura &Co said on Thursday net revenues grew by 36 percent during the full-year 2018. 

 
The São Paulo-based company, which operates its namesake brand Natura, as well as UK-origin The Body Shop and Australian high-end cosmetic brand Aesop, said total sales reached R$13.4 billion and adjusted net revenue improved by 13.5 percent during the year.
 
Likewise, in the fourth quarter, consolidated sales increased by 16.1 percent reaching R$4.3 billion, driven by strong performance in all three businesses. 

Operating income grew by 2.9 percent in the fourth quarter, to R$542.4 million, and by 17.3 percent in the full-year on a pro-forma basis, to nearly R$1.3 billion. 
 
Natura's CEO Roberto Marques praised all of its core brands for their strong performance during the year and quarter. 
 
"With double-digit growth in revenue, adjusted EBITDA and net income and strong free-cash flow generation, Natura &Co's performance in Q4 caps its first full year of existence with a very strong note. All three of our iconic brands contributed to this performance, with each one rolling out its specific strategy while benefiting from the scale, resources, sharing of best practices and strategic direction of the group," he said. 
 
Natura posted the strongest quarter in its history in terms of revenue, which was up 15.7 percent to R$2.7 billion in Q4 and up 9.9 percent in the full-year, boosted by strong Christmas campaigns in Brazil and Latin America. 
 
The Body Shop's net revenue was also up 11.2 percent in Brazilian Reais in Q4 and up 17.7 percent in the full year. Still, at constant currency, sales were down 1.7 percent in Q4, but the company said The Body Shop's transformation plan is well underway and showing encouraging results, with adjusted EBITDA in the full-year increasing by almost 62 percent excluding the expected transformation costs.
 
Meanwhile, Aesop delivered a strong quarter and full-year, with reported revenue up by 43.9 percent in Q4 and an even stronger 50.6 percent in the full year, with a very strong performance across all channels and geographies. During the year, Aesop opened 18 stores ending the year with 227 locations.