Natura & Co has seen a challenging first few months after it reported a revenue slump of 12.7% to Brazilian Real R$8.3bn ($10.2bn) in its Q1 2022 results.
Earnings were impacted by rising inflation, supply chain cost pressures and the first effects of the war in Ukraine.
Natura's skin care darling, The Body Shop, fell short during the three month period, with revenues dropping 22.9%.
“The Body Shop faced a particularly difficult quarter due to weak consumer demand in Europe as well as channel mix effect,” said Roberto Marques, Group CEO and Executive Chairman of Natura & Co.
In the UK, The Body Shop revenues declined by 26.3% when compared with the same quarter last year.
The UK results, however, are an increase when compared with Q1 2019, which saw revenues rise by 8%, and Q1 2020, when revenues jumped 5.1%.
The Body Shop said the drop comes after a strong performance during the Covid-19 lockdown, with The Body Shop At Home seeing a steep decline in consultant numbers as economies reopen.
Footfall in stores was also lower when compared with pre-pandemic levels.
Natura’s Aesop label saw net revenue increases of 9.6% during the quarter, as the brand reportedly posted consistent, superior sales growth relative to global luxury brands.
“We expect the environment to remain challenging in Q2 and will continue to take measures including further cost containment and strict financial discipline on investments in order to protect our profitability and cash generation,” added Marques.