Natura & Co shares fell after the company reported a fourth-quarter net loss of 890.4 million reais ($169.7 million), as it reported a contraction in revenue across all its business lines.
The Brazilian cosmetic maker reported that net revenue was down 11% at 10.39 billion reais, bogged down by Avon International and The Body Shop which both saw revenues decline by more than 20%. Avon International's revenue was down 23.8% in reais, and Natura said the drop “reflects the situation in Ukraine.”
In a positive, Aesop successfully entered China, with initial performance above expectations.
"In the challenging environment we faced in 2022, we decided in mid-year to reassess the group's growth model to enter a new stabilization cycle,” Natura CEO Fabio Barbosa said in a statement.
“Important changes were carried out, such as a stronger focus on profitability and cash conversion, a revision of the cost structure and the role of the holding company, alongside important revisions in our footprint worldwide.”
Natura stock was down 15.4% to $4.7 in afternoon trading.
The company manufactures and sells cosmetics, fragrances, and personal care products.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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