Natura, the Brazilian multinational cosmetics company, has reported a slow start to 2026 in its Q1 financial results.
Impacts of reorganisation costs and macroeconomic weakness in its home territory of Brazil, alongside ongoing recovery in Argentina following Avon’s integration and the offloading of its international arms, have contributed to the company’s revenue pressure.
Last year, the company streamlined its business operations, divesting its International and Russian Avon business as it pushed on with its focus to Latin America (LATAM).
Despite these challenges, the company has seen growth across other LATAM markets alongside gained market share in Brazil.
The results reveal a net revenue of R$4.7bn – a 7.7% fall from the year previous – while revenue declined 3.7% on a constant currency basis.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) dropped to R$346m, while the EBITDA margin fell from 12.6% to 7.3% when compared to the same period last year.
The findings also revealed a net loss of R$445m, with Natura reporting the drop as a reflection of a R$307m decline in EBIT and weaker financial results.
This is a significant increase from the year previous, which saw a R$50m loss in the same quarter.
In Natura’s Brazilian sector, revenue dropped by 5.5%, triggered by declines in its Natura and Avon brands.
Despite this, gross margins for the region sat at 69.3%, driven by stronger platform traffic and initiatives including live commerce.
Nautra’s overall gross profit margin sits at 66.61%
Other Hispanic markets (excluding Argentina) delivered a strong performance in the first quarter of 2026, with Natura reporting positive contributions from markets with a more mature Avon integration and ongoing recovery in Mexico.
This led to an overall growth of 7% across the Hispanic region in constant currency.
“Having implemented the new operating model without disruptions, our focus turns entirely to sustainable revenue growth and expanding profitability,” stated CEO João Paulo Ferreira.
“We are confident in delivering on our 2026 commitments, which include improving annual margin versus 2025 and robust cash generation, with our optimal capital structure and disciplined capital allocation translating directly into returns for shareholders."
Natura sold off Avon International in Europe, Africa and Asia in September 2025.
It also offloaded its business in Central America and the Dominican Republic.
The business in the region is known as Avon CARD, and includes Guatemala, Nicaragua, Panama, Honduras and El Salvador.
In February, Natura sold Avon Russia, marking the completion of its corporate simplification plan.