Natura reports USD 81.5M net income in Q2 2025, driven by Latin America growth

BRAZIL – Natura, a Brazilian global personal care cosmetics group, has reported a strong financial performance in Q2 2025, posting a net income of approximately USD 81.5 million (BRL 445 million) driven predominantly by robust growth in its Latin American operations. 

This marked a significant recovery from a net loss of BRL 859 million (around USD 158 million) in the same quarter of the previous year.

Natura’s CEO João Paulo Ferreira emphasized the company’s strengthened leadership in Latin America, solid revenue acceleration in Brazil, and confidence in sustained profitability growth despite consumption slowdowns.

Paulo stated, “After a solid first quarter, we delivered another quarter of strong results. Our key market, Brazil, saw revenue acceleration, and Natura outperformed the market, even with challenges related to Avon.” 

“Natura’s CEO João Paulo Ferreira emphasized the company’s strengthened leadership in Latin America, solid revenue acceleration in Brazil, and confidence in sustained profitability growth despite consumption slowdowns.”

Solid revenue growth in its core Latin American markets, particularly Brazil, where Natura Brazil’s revenue increased by 10.3%. 

Hispanic markets also showed strong growth, rising by 17.8% in the quarter.

The company’s streamlined operations and ongoing integration of Avon and Natura brands in Latin America, a process termed “Wave 2,” which is expected to be completed by the end of 2025.

Excluding Avon International (reclassified as an asset held for sale), Natura’s recurring EBITDA for Q2 2025 grew 4.5% year-on-year to BRL 795.6 million (about USD 146.4 million), with a recurring EBITDA margin in Latin America rising modestly to 14.7%.

Improved gross margins due to greater operational efficiencies in markets where Natura and Avon brand integration is more mature.

Despite the overall net revenue slightly dipping by 1.7% to BRL 5.7 billion (USD 1.05 billion), this was attributed partly to the reclassification of Avon International and underperformance in some areas.

The Avon Brazilian operations saw a revenue decline of 12.9%, which partly offset some gains.

In addition to its strong financial performance, Natura is making significant progress in its sustainability efforts. 

The company earned an A rating from CDP, a leading global organization that assesses corporate transparency and action on climate change, specifically recognizing Natura’s commitment to climate initiatives and supplier engagement.

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