Brazilian beauty conglomerate Natura & Co has reported a double-digit slump in revenues for Q3 2025.
Net revenue sank 13.1% to BRL 5,194m, attributed to slowdown in Brazil and issues in Argentina and Mexico integration.
The Avon-owner, which acquired the brand in 2020, also reported a 33.7% fall in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) to BRL 577m.
Natura & Co attributes the weaker performance to slowing demand in its key Brazilian market, where revenue declined by 3.7%, citing high interest rates and slower economic growth within the market.
Integration challenges after brand mergers in Latam, including completion of integration of business operations between Natura and Avon across the market, have also played a part in the numbers due to disrupted performance.
Both Natura’s earnings per share (EPS) and revenue missed forecasted figures significantly, falling 12.27% and 32%.
Despite the results, stock prices remained stable with a closing price of $9.20.
Key risks for the company going forward include weaker consumer demand in Brazil, and a knock-on effect of integration drag across Latam will continue to weigh on performance, at least in the short term.
Earlier this year the company shared plans to sell its Avon International unit to holding firm Regent, with a deal announced to sell the brand’s Central American businesses to Groupo PDC.
It will retain the brand’s Latam operations, with Avon’s Russian business currently ‘held for sale’.
João Paulo Ferreira, CEO, said: “We are confident that profitability will improve in the next quarter and remain committed to expanding our EBITDA margin for the full year 2025.
“Mexico stabilised toward the end of the quarter, and Argentina is already showing signs of recovery.”
The company has put plans in place to build on its results for the next quarter.
“At the same time, the efficiency and cost containment measures already underway will further support profitability improvements,” he continued.
“We remain focused on expanding our leadership in Latin America, including Brazil, while accelerating growth and profitability in Hispanic markets, particularly Mexico.”