Brazil's Natura swings to recurring profit despite revenue fall

About this update from Natura Cosmeticos Sa

Brazilian cosmetic maker Natura BMFBOVESPA:NATU3 reported on Monday a 186-million-real ($35.54 million) recurring net profit for the fourth quarter, swinging from a 227-million-real loss in the same period of 2024, as lower expenses offset a revenue fall.Natura implemented asset sales in the last few years in an attempt to simplify its corporate structure and increase profitability by focusing on its Latin American operations. Net revenue fell 12.1% to 6.19 billion reais in the October-to-December quarter, missing the 6.74 billion reais that analysts polled by LSEG had expected.Natura said the revenue was impacted by factors such as deceleration in Brazil and brand integration in Argentina.At the same time, Natura was able to cut operational expenses by over 22% and sales expenses by 20.5%.With that, core earnings, or recurring EBITDA, stood at 978 million reais, up 57.2% and above the 741 million reais expected by analysts.Recurring EBITDA margin rose to 15.8% from 8.8%.($1 = 5.2332 reais)

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