Natura Group reported H1 net revenue of BRL 9.915 billion (€1.69 billion), down 8.5% year on year and 5.5% in constant currency. EBITDA fell 26.2% to BRL 965 million (€164 million), with the reported EBITDA margin declining 240 basis points to 9.7%. The group posted a net loss of BRL 410 million (€70 million), compared with net income of BRL 44 million (€7 million) a year earlier.
Brazil, which accounted for 58% of H1 revenue, remained the main source of pressure. Revenue fell 10.7% to BRL 5.752 billion (€978 million), while EBITDA declined 29.6% to BRL 874 million (€149 million). The EBITDA margin dropped 410 basis points to 15.2%. Natura attributed the weaker performance to product availability issues, softer consumption, a temporary indirect-tax mismatch in São Paulo, and changes to pricing, commercial rules and franchise contracts.
Hispanic Latam performed better. Revenue declined 5.2% in reported BRL terms to BRL 4.164 billion (€708 million), but increased 3.0% in constant currency. EBITDA reached BRL 129 million (€22 million), with a margin of 3.1%, down 110 basis points.
The trend improved in Q2, when Hispanic Latam revenue grew 7.2% in constant currency and the reported EBITDA margin increased to 7.6%, from 4.0% a year earlier. The improvement was driven mainly by Mexico, a gradual recovery in Argentina and lower G&A costs following the introduction of the new operating model.
By brand, Natura revenue fell 6.0% to BRL 7.779 billion (€1.32 billion), while Avon declined 14.1% to BRL 1.639 billion (€279 million).
Management is now reviewing its previous ambition to expand the reported EBITDA margin versus FY25. It still expects free cash flow to remain positive and improve year on year.
