Brazilian cosmetic group Natura & Co. reported strong growth in revenue during the third quarter, outperforming the global cosmetics, fragrance and toiletries (CFT) market, thanks to strong sales gains across all brands.
Natura & Co., which operates its namesake Natura cosmetics brand, as well as Aesop, The Body Shop and Avon, said consolidated sales stood at US$1.92 billion for the three months, up 31.7% in Brazilian Reais and 11.6% at constant currencies.
The Sao Paulo-based group said revenue growth was “driven by outperformance by both Natura and Aesop, solid growth by The Body Shop, and growth in sales in Reais by Avon.”
By brand, Natura revenues lifted 41.2% in local currencies, Avon brand’s revenue increased by 19.3%, while Avon International – comprised of Avon’s activities in 50 markets throughout Europe, Asia, Africa, and the Middle East — saw its Q3 net revenue grow by 22.5%.
The Body Shop’s total revenue increased 51.9%, while Aesop’s sales surged 67.2%, as a 264% increase in digital sales helped offset ongoing retail closures related to Covid-19 in major markets such as the U.S. and Australia.
“Enabled by continued digitalization, our brands delivered strong results in the third quarter, with significant growth in sales and margin improvement,” said Roberto Marques, Executive Chairman and Group CEO of Natura & Co.
“In an environment that has remained challenging throughout the world as a result of the Covid-19 pandemic, we delivered superior results compared to the CFT market both globally and in Brazil,” continued Roberto.
Adjusted EBITDA was US$285.6 million, the company added. Natura & Co. also announced last week that the cosmetic group in October completed a capital raising of US$1 billion.
The funds will be used to drive growth on its key strategy areas, including “Avon’s integration, group digitalization, geographic expansion, and the group’s 2030 sustainability commitments.”