Natura sees revenue under pressure in Brazil and Argentina while performing well across other Latin American markets in Q1-26

About this update from Natura Cosmeticos Sa

Revenue pressured by macro conditions in Brazil and Argentina, and gradual recovery in the Argentine market following the integration with Avon Natura gained market share in Brazil in the quarter, driven by sell-out growth and a sequential increase in the relationship selling channel Solid performance in Hispanic markets ex-Argentina, with a channel recovery in Mexico EBITDA of R$ 346 million with a 7.3% margin temporarily impacted by extraordinary non-operating costs Avon relaunch initiated in March, with new products sales exceeding expectations, though implementation remains in its early stages Free cash flow to firm was neutral when excluding R$ 330 million in extraordinary costs amid the implementation of the Company's new operating model SÃO PAULO, May 11, 2026 /PRNewswire/ — Natura (B3: NATU3) today reported its first quarter 2026 results, with net revenue of R$ 4.7 billion, EBITDA of R$ 346 million, and EBITDA margin of 7.3%. Performance was pressured by the macroeconomic slowdown and lower consultant activity and headcount in the main market, Brazil. Results further reflect the ongoing recovery of Argentina operations post the Avon integration in the second half of 2025 amid declining consumption and an unfavorable exchange rate in the country.Despite revenue headwinds, Natura Brazil gained market share in the quarter on the back of sell-out growth (sales to the end consumer), while steadily recovering the relationship selling channel with a sequential increase in the number of beauty consultants. Brazil's digital sales grew +23.6% YoY, underpinned by stronger platform traffic and key initiatives such as live commerce and the ongoing digitization of the consultant network. In retail, revenue increased 14.3% YoY.Excluding Argentina, the other Hispanic markets delivered solid performance in the first three months of the year, driven by positive contributions from markets where the Avon integration is already more mature and by the ongoing recovery in Mexico, where the brand combination was completed in the first half of 2025.Across the Hispanic region as a whole, the Natura brand grew 7% in constant currency.Q1 2026 also marked the beginning of Avon's relaunch in Brazil and Mexico in March, with a new positioning and innovation portfolio to be rolled out in phases. While still in its early stages and accounting for a small share of total volume, th...

View stock analysis, news, and events for Natura Cosmeticos Sa