Natura’s sales declined 12.1% to BRL6,193m in the fourth quarter of 2025 – a year when it streamlined its business and divested its International and Russian Avon business.
The decline in Q4 was due to a slowdown in Brazil, where there was a “challenging” macroeconomic environment.
As well as "temporary instabilities” from the integration of its Natura and Avon business in Mexico and Argentina.
Currency fluctuations and negative hyperinflation from Argentina also impacted the beauty company.
On a constant currency basis which strips out these effects, revenue was down 3.4%.
The company said it achieved strong profitability growth, however, with earnings before interest, taxes, depreciation and amortisation (EBITDA) margin reaching 16% in the quarter.
Recurring profitability of 14.6% for the full-year was up 130 basis points on the previous year.
Net income for the year was BRL974m, which also included a non-recurring cost of BRL434m from its sale of beauty retailer The Body Shop.
Revenue for the full-year was down 5%, but up 1.8% on a constant currency basis.
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.
“We have delivered on our commitment to expanding annual profitability, marking the fourth consecutive year of margin improvement,” said João Paulo Ferreira, Natura’s CEO.
“We enter 2026 with a simpler and more agile structure, ready for a new cycle of prosperity and innovation.
“We remain focused on expanding and consolidating our leadership in Latin America, growing the Natura brand and relaunching Avon, which kicked off this March in Brazil and Mexico.”