Natura &Co released its 2023 financial results, reflecting the benefits of the company’s plan to prioritize profitability and integrate its Natura and Avon brands in Latin America. The Wave 2 strategy was implemented 18 months ago and highlighted cash conversion versus revenue growth as well as divesting non-core assets to deleverage and simplify the corporate structure. 
 
Consolidated net revenue reached $5.36 billion in 2023, up 3.5% from 2022 (in constant currency). The Natura brand saw strong growth in Latin America led by Brazil, with an 8.6% revenue increase YoY. 
 
This growth is offset by reductions in Avon Latam with the release of the Wave 2 strategy in the region. Avon International also decreased consultants and its portfolio as an optimization strategy. Both Avon Latem and International saw improvements in expense structures. 
 
The gross margin reached 63.8% in 2023, up 410 bps compared to 2022. This was driven by effective pricing strategies, product enhancement and portfolio optimization. The adjusted EBITDA reached $542 million, and the adjusted EBITDA margin expanded 310 bps YoY.
 
These results highlighted growth versus the prior year in each quarter as well as reinforced financial and operational strategies throughout the year.
 
Natura’s net income reached $602 million in 2023 improved by proceeds from the sale of Aesop that was completed in August. Disinvestments of Aesop and The Body Shop allowed Natura to pay for roughly 60% of its debt and end the year in a strong net cash position. 
 
“2023 marked a pivotal chapter in the Company’s history, setting the stage for the ambitious horizons we aim to reach in 2024,” commented Natura &Co Group CEO Fabio Barbosa. “Notwithstanding a volatile macro environment in Latin America, we kicked-off Wave 2, our most important strategic project aiming to combine Avon and Natura brands in the region. Progress in Brazil, Peru and Colombia is underway, and the lessons learned allowed us to implement a softer integration in Chile in early 2024.”
 
Barbosa added, “In 2024, capital allocation will continue to be a critical driver for future value creation, with a focus on investments in key growth markets and projects. We continue to expect volatility in top-line, but with margin improvements in the full-year, particularly ex-Argentina.”

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