Avon’s poor results continue to drag down the profitability of the Brazilian cosmetics giant. Indeed, the group’s Q1-2024 losses widened due to falling sales at the Avon business.
Natura &Co’s consolidated net revenue reached BRL 6.1 billion in Q1-24, up 1.1% vs Q1-23 in constant currency (CC) and down 5.7% year-on-year (YoY) in Brazilian Reais (BRL). Q1-24 reported net loss widened to BRL 935 million, compared to a net loss of BRL 652 million in Q1-23.
Strong results in Natura Brazil were offset by Avon Latam, which is still delivering soft top-line, with revenues down 11.3% in Brazil and 11.8% in Hispanic Latam. Furthermore, Avon International had a slow start in Q1 in terms of revenue, down by 4.7% YoY in CC.
“In Brazil, Avon still experienced headwinds impacting the top-line, but with an improving trend month over month, and we expect Avon’s top-line to stabilize in the second half of the year. We also saw significant margin expansion in Peru and Colombia,” said Fabio Barbosa, Group CEO of Natura &Co. “Avon International had a slow start of the year, following a solid Q4 2023 profitability performance. The new management team took office in January and is working on simplifying the market, focusing on key countries, and enhancing our portfolio with superior promotional execution. We believe these steps are crucial to stabilize revenues and keep us on track to improve profitability,” he added.
