Natura &Co posted a internet revenue of 35 million reais (BRL) for the second quarter of 2026, an 82% drop in comparison with the 196 million recorded throughout the identical interval in 2025. This outcome fell wanting Citi’s forecast, which had projected BRL 137 million.
Consolidated internet income reached BRL 5.17 billion within the April–June interval, representing a 9.1% year-on-year decline, however broadly in step with analysts’ expectations of BRL 5.15 billion. Income fell throughout the corporate’s three predominant enterprise segments through the quarter: Natura (-8.2%), Avon (-11.0%), and Casa & Estilo (-27.6%). In distinction, the Others section posted a 79.3% enhance.
EBITDA (earnings earlier than curiosity, taxes, depreciation, and amortization) totaled BRL 620 million, down 5.9% 12 months on 12 months, whereas the EBITDA margin stood at 12.0%, exceeding market expectations.
Income within the Brazilian market declined 14.8% 12 months on 12 months to BRL 3.07 billion. The Natura model posted a 14.5% lower, whereas Avon reported a 22.5% drop in gross sales. In line with the corporate, the weaker efficiency in Brazil was primarily attributable to product stockouts, momentary tax timing results, and a softer client surroundings.
In distinction, Spanish-speaking Latin America delivered development and partially offset the stress from Brazil. Income within the area reached BRL 2.1 billion, up 0.7% in nominal phrases and seven.2% at fixed trade charges. Natura and Avon recorded income development of 5.0% and 1.4%, respectively. Regional EBITDA rose to BRL 160 million, representing a 92.7% year-on-year enhance, whereas the EBITDA margin expanded to 7.6%, up 360 foundation factors from the prior-year interval. The corporate attributed the stronger profitability primarily to decrease promoting, normal and administrative bills following the implementation of a brand new working mannequin within the area.
“Q2-26 outcomes revealed greater-than-expected operational challenges in Brazil, which had been amplified by the macroeconomic surroundings. Nevertheless, efficiencies from the brand new working mannequin, mixed with a wholesome gross margin, stored the area’s profitability within the mid-teens – or excessive teenagers when excluding the momentary influence of oblique tax adjustments within the State of São Paulo. Conversely, efficiency improved throughout each income and profitability within the Hispanic markets. On a consolidated foundation, operational challenges in Brazil weighed extra closely as a result of its important share of the general enterprise,” commented the Group’s administration staff.
