Natura is not recovering from the setback. The Brazilian cosmetics group has registered losses of more than 930 million reais, equivalent to 170 million euros in the first quarter of the year and more than 40% compared to the same period last year,
According to the company, this result is caused by ‘the contraction of the margin’ of the Avon International division ‘in the midst of sales deleveraging’ among other factors, as explained in the financial balance sheet sent to the market.
Natura explained that Avon International has suffered another difficult quarter, with a drop in revenue of more than 13%, affected by a sharp decline in the Home and Style division, although this drop in sales has also been replicated in the beauty and cosmetics category.
Fabio Barbosa, CEO of the Natura group, despite the quarterly losses, explained that he is confident of a recovery and that the results seem ‘encouraging’. ‘In Brazil, Avon experienced headwinds that affected the top line, but with an improving trend month by month, and we expect Avon's top line to stabilise in the second half of the year,’ Barbosa said.
Barbosa Added also that expects a significant expansion of the margins in Peru and Colombia. "As it was to expect, our initiative of integration is generating greater savings so much in general and administrative costs as in available costs, although these last see countered by greater investments in márketing and other initiatives centred in improving the levels of service; the solid beginning of year does us trust that the initiatives that are applying begin to give the results expected".
Nature suffers a very delicate situation to world-wide level and in diverse points of the world has seen forced to restrict his activity in Germany, New York and other points of Europe as a result of the purchase of the main bottom Aurelius.