Natura &Co Latam Reports 15% Profitability Rebound in Q1 2025
Natura &Co Latam reported a recurring EBITDA margin of 15% in Q1-25, or 13.9% adjusted for non-operating impacts, which represents a year-on-year increase of +50 bps and exceeds the 9.6% result from the previous quarter. Gross margin in Latin America reached 67.1%, driven by year-on-year expansion in countries where Natura and Avon brands have been integrated (Wave 2). The Latin American business unit saw net revenue grow by 12.2% in constant currency (CC) compared to Q1-24, supported by the strong performance of the Natura brand.
Total revenue for Natura &Co was R$6.7 billion, including R$1.4 billion from Avon Internacional. The improved profitability reflects gross margin expansion in Latin America, resulting from the integration of Natura and Avon businesses in Wave 2 countries. Efficiency in managing general and administrative expenses also contributed to margin evolution. Natura brand performance drove Q1-25 results, with revenue increases of 8.2% in Brazil and 38.4% in Hispanic countries (mid-teens excluding Argentina). In Brazil, retail growth was fueled by strong same-store sales and new store openings, with 149 owned stores (+34 compared to Q1-24) and 869 franchises (+88 compared to Q1-24). Digital sales increased by 34.7% year-on-year, and the brand's share of voice on social networks grew, leading key beauty platforms.
Natura's CEO, João Paulo Ferreira, stated that Latin America's performance contributes to achieving year-on-year expansion of the recurring EBITDA margin by the end of 2025. Efficiencies from Wave 2 will be partially reinvested in marketing and strategic fronts, with some volatility between quarters. The implementation of Wave 2 in Mexico and Argentina is expected to be completed in 2025, concluding the transformation cost cycle. From an ESG perspective, the Celaya plant in Mexico became the first Natura facility in Latin America to be fully powered by certified solar energy. This initiative, part of the company's decarbonization strategy, has already reduced carbon emissions by approximately 1,000 tons and is expected to reduce annual emissions by 83%, aligning efficiency gains with climate goals.
The CEO also emphasized the company's commitment to the ESG agenda, reflecting continuous progress in social and environmental goals, and generating a competitive advantage. Natura was recognized as one of the World's Most Ethical Companies by the Ethisphere Institute for the 14th time and received the
