In the opening quarter of 2025, Natura &Co Latam has demonstrated a robust resurgence, with impressive financial results driven by enhanced operational strategies and brand strength. The company reported a recurring EBITDA margin of 15% and a revenue growth of 12.2% in constant currency compared to the same period last year. This achievement underscores the success of their integration efforts and highlights their ability to navigate through challenging market conditions.
During the first three months of 2025, Natura &Co Latam achieved net revenues amounting to R$5.3 billion, reflecting a significant increase of 12.2% in constant currency relative to Q1 2024. A standout feature was the recurring EBITDA margin that climbed to 15%, adjusted figures showing 13.9%, which is a marked improvement from the previous quarter's 9.6%. The gross margin expanded to 67.1%, credited to heightened efficiency gains and synergies from integrating the Natura and Avon brands in various Latin American territories under Wave 2.
In Brazil, sales for the Natura brand surged by 8.2%, while Hispanic markets saw an even more substantial rise of 38.4% (excluding Argentina). Retail performance played a crucial role in this growth, supported by 149 owned stores and 869 franchises. Additionally, digital sales soared by 34.7% year-on-year, demonstrating the increasing importance of online platforms in reaching customers.
The company attributes its success to heightened engagement on social media across key beauty platforms. This interaction helps foster customer loyalty and boosts brand visibility. Furthermore, Natura &Co Latam continues to build momentum following the consolidation of Natura and Avon operations in vital regions. As they complete the Wave 2 rollout in Mexico and Argentina, efficiency improvements and margin enhancements point towards a stable post-integration phase.
Investments in both retail and digital channels are proving effective in mitigating macroeconomic uncertainties, especially in emerging markets. Moreover, environmental sustainability remains central to the company’s strategy. Initiatives such as a solar-powered facility in Mexico highlight their commitment to ESG goals, reinforcing their competitive edge in the personal care industry over the long term.
The positive outcomes in Q1 2025 signify Natura &Co Latam's strengthened profitability and disciplined operations. Their strategic focus on efficiency and innovation positions them well for continued success amidst evolving market dynamics, setting a strong precedent for future quarters.