Natura navigates Brazilian headwinds as Hispanic markets drive growth

While consolidated EBITDA hit BRL 620 million—a sequential improvement of 470 basis points—the company faced significant operational friction. CEO João Paulo Ferreira attributed the weakness in Brazil to product unavailability and internal adjustments, noting that initial disruptions proved more severe than anticipated. Despite these hurdles, the company maintained a positive free cash flow of BRL 342 million and successfully trimmed its leverage ratio to 2.06x.

To regain momentum in the second half of the year, Natura is rebalancing its supply chain and pushing aggressive commercial incentives for its sales force. The firm is simultaneously expanding its 'Minha Loja' digital platform and recalibrating its franchise model. While the company has adjusted its margin expectations, it continues to prioritize strategic spending on R&D and marketing. Beyond financial metrics, Natura reported early success in its sustainability goals, including the integration of 52 Amazonian bioingredients and a circular economy initiative that boosted average ticket sales by over 49% in company-owned stores.