Natura & Co, the owner of Avon International, is expecting a sale of the business within the next 12 months.
The Brazilian conglomerate has “reclassified” the direct-selling cosmetics company as an “asset held for sale”, according to its latest financial results.
Avon Central America and Dominican Republic, which previously came under the Avon Latin America (LatAm) umbrella, are also up for sale.
“The review of strategic alternatives for Avon International has progressed well and continue to be a top priority for both the management and the board,” the company said in a statement.
Natura & Co had previously said it was exploring a separation of its Avon business outside of its home region amid a streamlining of its business.
At the end of last year, it said strategic alternatives for Avon International included the possibility of a sale or spin-off.
In an update on its second quarter performance this week, Natura & Co reported net profit for the three months to the end of June R$195m.
That figure excludes Avon International business and compares to an R$859m loss in the same period last year.
Net revenue was R$5.7bn, down 1.7% on Q2 2024, but up 5.5% on a constant currency basis – and 2% excluding Argentina, which has experienced FX and inflation volatility.
That was driven by a double-digit performance from Natura Brazil, up 10.3%, and 17.8% growth in Hispanic markets, excluding Argentina.
However, that was offset by a “still weak” performance of the Avon brand in Brazil, which was down 12.9%, in addition to “the anticipated volatility of Avon and Home and Style in Hispanic markets related to the Wave 2 integration in Mexico and preparations in Argentina”, the company said.
The company is integrating its Natura and Avon businesses across Latin America.
In a call with investors, Natura CEO João Paulo Ferreira said: “Resolving the situation with Avon International is an absolute priority for the executives and the board of directors.”