Natura &Co reversed a loss in 2020 to report internet earnings in 2021 of R$1 billion. This acquire occurred partly on account of the group’s emphasis on price self-discipline within the face of price pressures. EBITDA margin posted a acquire of 90 foundation factors within the fourth quarter of 2021, regardless of a slight gross sales decline in the course of the quarter.
Web income for the fourth quarter of 2021 was R$11.6 billion, a 3 p.c lower from the identical interval final yr. Adjusted EBITDA margin was 13.3%, a end result that displays the structural modifications and achieved price synergies at Avon Worldwide.
Pushed by a progress within the firm’s Hispanic markets, consolidated internet income in 2021 reached R$40.1 billion. On-line gross sales, e-commerce, social promoting and digital app gross sales accounted for 52% of whole income.
The Physique Store and Aesop posted optimistic internet income will increase of 8.8% and 22.8% will increase respectively. Avon Worldwide reported a internet income lower of 5.6% within the fourth quarter of 2021, however a 2.5% enhance for the total yr 2021.
Whereas each Ukraine and Russia are essential markets for the group, the areas signify lower than 5% of the group’s whole income. Natura &Co introduced it has suspended operations in Russia for each The Physique Store and Aesop, and is suspending exports for Avon whereas it continues to assist social promoting operations for its representatives. Along with the worldwide complexities of inflation, provide chain limitations and pandemic restrictions, this worldwide disaster has made the group’s emphasis on prices and continued transformational modifications much more essential. This price focus allowed the corporate to considerably increase its EBITDA margin.
The group ended the yr with a robust stability sheet, with R$6 billion in money or money equivalents.