Natura, a prominent name in the beauty and personal care industry, has reported its financial results for the third quarter of 2026, revealing a challenging period for the company. The consolidated net revenue for the quarter reached BRL 5 billion, reflecting a decrease of 3% in nominal terms and a 5.9% decline in constant currency. In Brazil, the company experienced a notable revenue downturn of 9%. Although this marked an improvement from the previous quarter, it failed to meet the company’s expectations, significantly impacted by product shortages and decreased productivity among its beauty consultants.
Despite these setbacks, Natura managed to enhance its financial stability through effective cash generation and inflows from FIDC (Fundo de Investimento em Direitos Creditórios). As a result, net debt was reduced to BRL 3.4 billion, with a subsequent fall in leverage to 1.83x, down from 2.06x in the preceding quarter. This progress underscores the resilience of Natura’s business model, even in the face of operational challenges.
In analyzing the company’s performance across different regions, revenue in Hispanic markets remained relatively stable when viewed in constant currency, showing a minor decline of 0.9%. However, the data points to a slowdown in Mexico compared to the previous quarter, attributed to the timing of sales cycles and the ongoing recovery in Argentina following the integration with Avon. The company’s consolidated Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) totaled BRL 460 million, equating to a margin of 9.1%.
Natura’s net income reversed to BRL 49 million, succeeding a significant net loss of BRL 119 million during the same period last year. This financial turnaround is indicative of the company’s robust cash flow generation capabilities, with BRL 268 million logged for the quarter.
Newly appointed CEO Ale Carlucci, who assumed leadership on October 1, 2026, remarked on the current transitional phase and the imperative initiatives aimed at unlocking the company’s full potential. With an emphasis on enhancing operational capabilities, Carlucci outlined three key priorities: improving product availability and service levels, modernizing the relationship selling model, and reinforcing the Natura brand through innovative offerings. By addressing internal operational bottlenecks, Carlucci emphasized that while the resolution may take time, these adjustments are critical for positioning Natura for sustainable growth in the future. The focus on a resilient business model, combined with a disciplined approach to capital allocation, remains paramount as Natura navigates its strategic path forward.
Natura, a pioneer in leveraging Brazilian biodiversity for beauty products, has established a remarkable reputation as an ESG leader in Latin America. Founded in 1969, the company continues to create impactful partnerships with local communities while ensuring the conservation of vital forest ecosystems.