Beauty Sales: $5.5 billion

Major Brands:

• Natura
• Avon

New Products:

• Avon: Fresh Green Floral and Soft Floral Deodorant Stick

Comments: Consolidated net revenue for Natura &Co was $5.5 billion thanks to Natura’s solid performance, partially offset by the expected reduction at Avon Latin America and mid-single digit decline at Avon International.

Net revenue for Natura &Co Latin America, was up 6.4% in constant currency, driven by healthy growth at the Natura brand in Brazil. Avon International’s revenue was down 4.4% YoY in consistent currency, despite Beauty’s stable performance.

Natura &Co’s Wave 2 strategy was implemented 23 months ago and highlighted cash conversion versus revenue growth, as well as divesting non-core assets to deleverage and simplify the corporate structure.

The company made progress on Wave 2 of Natura and Avon’s business combination process in Latin America. This resulted in a strong performance from the Natura brand in Brazil and a rebounding trend from Avon amid ongoing operational enhancements. As part of Wave 2, improvements in service levels were made in Peru and Colombia, facilitating a smoother integration of Natura, and Avon in Chile was completed in early 2024.

In 2023, Natura &Co achieved significant milestones, marking a transformative year driven by strategic initiatives. Key highlights include the successful execution of our simplification strategy, demonstrated by the divestment of Aesop and The Body Shop, resulting in a further streamlined holding structure and enhanced autonomy within Business Units.

In November 2023, Natura &Co sold The Body Shop to international private equity group Aurelius for a value of $254 million, including an earn-out of $110 million. The earn-out will be payable up to five years after the closing on January 10, 2024.

Aurelius said it is committed to maintaining The Body Shop’s long-standing, distinctive values, instilled by its founder, Dame Anita Roddick.

In selling The Body Shop, Natura &Co refocused on its strategic priorities, accelerating the integration of the Natura and Avon brands in Latin America, and further optimizing Avon International’s footprint.

In February 2023, Avon began selling on Amazon to expand its omnichannel strategy. This move allows Avon to serve a wider customer base and boost its digital presence. To further expand Avon’s global presence, in October 2023 the brand launched at Superdrug stores in the UK.

In selling on Amazon and in stores, Avon enables consumers to shop in the way they would prefer to shop, meaning shopping through their representatives, retail, marketplaces, and e-commerce. Avon still offers its products on digital brochures, paper brochures, and now at franchise stores. Avon has successfully opened 63 Representative franchise stores in Turkey and the UK.

Natura &Co. explored the separation of Natura &Co Latam and Avon as two independent listings. This would allow both companies to pursue tailored strategies and give shareholders more visibility into company structures.
The separation would not affect the integration of both brands in Latin America. As of now, the separation will be decided by the Board of Directors and will be subject to a variety of conditions. Currently, no decision has been made.

Looking Ahead:

Natura &Co remains focused on further simplification, as evidenced by the delisting of its ADR from the New York Stock Exchange, and the evaluation of the potential separation of Natura &Co Latin America and Avon International.

While challenges persist, particularly the volatility in Avon’s revenue performance in Latin America, Natura &Co is poised to continue driving profitability and cash conversion enhancements, building upon the momentum of 2023.

Beauty Sales: $7.1 billion

Major Products/Brands:

• Aesop (now sold to L’Oréal)
• Avon
• Natura
• The Body Shop

New Products:

• Natura—Luna Coragem and Essencial Único fragrances, Chronos Aqua Plumping Bio-Hydrating Serum, Ekos reformulation.
• Avon—Anew Sensitive+, Eve Privé and Far Away Splendoria fragrances, Ultra Color lip gloss. Aesop—Exalted Eye Serum, Eidesis fragrance.
• The Body Shop—Vitamin C Glow, Sleep and Breathe Wellness & Self-Care, Jamaican Black Castor Oil

Comments on Sales: Despite operating in more than 100 countries, restructuring costs, higher operating expenses and Forex issues combined to take a $563 million bite out of Natura’s 2022 net profits, as sales fell 9.5%.

The Natura brand was a driving force in the company’s 2022 performance, while the year also saw improvement from Avon in the CFT category, which combined, were more than enough to offset the impacts of the planned Fashion & Home portfolio optimization strategy in Avon Latin America.

The company also installed a fully dedicated team to roll out the planned accelerated combination of the Avon and Natura businesses in Latin America in 2023 (starting with Peru and Colombia, and followed by Brazil), with the objective to unify the value proposition for Consultants and Representatives.

Unfavorable exchange rates played a key role in a sales decline in Natura &Co’s core Latin America division, which fell 1.7%; however, the Natura brand still turned in a solid performance.

Natura’s Notable Launches

Natura’s investments in innovation were manifested in the launch of the new Chronos product lines and in the increase in the use of bio-actives in the Ekos line, which underscored the company’s relationship with the Amazon forest and its communities.

Using recycled plastic retrieved from the Brazilian coast in its packaging, Kaiak Oceano delivered a robust sales performance while addressing environmental issues. The largest part of the pack has 20% less plastic, and 50% of all the plastic used in it is recycled.

Avon Renews Focus on Beauty

Avon recorded an encouraging sequential topline improvement in the Beauty segment throughout the year.

The measures adopted to balance business activity and recruit new representatives resulted in improved KPIs, including productivity growth in the Beauty category, which also benefited from a better product and price mix, product innovation, and marketing strategies.

Avon’s overall net revenue in the key market of Brazil was still down 5.7% compared with 2021 due to a drop in Fashion and Home sales, as a result of a deliberate ongoing portfolio reduction in this category and a post-lockdown change in consumer habits.

See Also: Avon recently became Leaping-Bunny-approved & is highlighted in our feature, Growing Clean Beauty From the Ground Up

The Body Shop Faces Challenges

Natura &Co acknowledged that without exaggeration, 2022 was the most difficult year in the history of The Body Shop, where total net revenue was down 24.3%.

Key to its continued transformation, The Body Shop is ramping up the deployment of its new Changemaking Workshop stores, a “revitalized retail experience” rollout that was delayed by the lockdowns during the different waves of Covid-19. By the end of 2022, 10% of the brand’s footprint had been refitted, including owned and franchised stores.

Despite the uneven sales results throughout the year, Natura &Co reported that The Body Shop’s e-commerce channel saw ongoing improvements, reaching double pre-pandemic levels in 2022.

See Also: The Body Shop Expands Refill Program in Canada—saving more than 90,000 plastic bottles from the landfill

Natura & Co. Names New CEO

Natura &Co announced a reorganization with Fábio Barbosa as CEO of the group. It is part of its effort to decentralize its business model. Barbosa has served on the Natura board since 2015.

After posting a stellar 4.6% 2022 sales increase, in April 2023 Natura &Co announced the sale of its Aesop division to L’Oreal for the sum of $2.5 billion. The transaction is expected to close in Q3 2023.

CEO Barbosa said the divestment of Aesop would enable Natura “to sharpen its focus on strategic priorities,” notably its investment plan in Latin America, as well as enabling greater concentration on the improvement of The Body Shop’s business and refocusing Avon International’s footprint.

Looking Ahead

After a 2.8% dip in Q1, Q2 2023 results showed a 4.1% loss in comparison to Q2 2022.

In August, Natura mentioned in a securities filing that it was exploring strategic alternatives for its The Body Shop business, adding that it could potentially include a sale. The news comes after a pattern of declining sales and staff cuts.

Beauty Sales: $7.1 billion

Major Products/Brands: Aesop, Avon, Natura, The Body Shop.

New Products:

• Aesop: The Exalted Eye Serum, Parsley Seed Anti-Oxidant Intense Serum, The Adventurer Roll-Up hand care collection.
• Avon: Attraction, Far Away Beyond, Artistique Monet Collection fragrances, Ultra Lipsticks, Anew Power Serum, Anew Hydra Pro Vita-D.
• Natura: Biome body and hair shampoo bars; Chronos Super Serum Wrinkle Reducer; Essencial Oud Vanilla and fragrance refill.
• The Body Shop: White Musk fragrance; Breath, Boost and Sleep Wellness collection.

Financial Summary: After a solid 2020 and a challenging 2021, Roberto Marques, Natura’s executive chairman and group CEO, expressed faith in Natura &Co’s resilience and affirmed that the company remained on track to deliver its 2022-2024 promises for sustainable, profitable growth. As of 2021, Natura &Co’s “beauty collective” operations spanned many countries, with more than 3,700 stores, 35,000 employees and 7.7 million representatives and consultants.

Natura &Co’s overall sales climbed 8.8%, with more than half of the group revenue coming from digitally-enabled sales. Direct selling accounted for 74.8% of sales, followed by retail (14.5%) and online (10.7%). The company’s goal is to have digitally-enabled sales account for at least 75% of its revenue.

Natura &Co’s Latin America unit saw sales grow 6.3% thanks to a 22% gain in Hispanic Latin America. The unit also posted solid gains in Argentina, Chile, Peru and Mexico, which became Natura’s biggest market trailing only Brazil. Its Natura brand reached its highest-ever recorded value (up 19% to $ 1.7 billion) in 2021 and was subsequently ranked as the world’s strongest brand in the cosmetics sector, according to Brand Finance.

As the company’s newly integrated Avon unit marked its 135th year in business, Natura &Co said Avon International is currently centered on eight key markets that include Italy, Philippines, Poland, Romania, South Africa, Turkey, the UK and China, with its commercial model rolling out to 12 markets. And although the product portfolio was cut by 20%, the increased adoption of digital brochures and online sales led the company to expect an acceleration of digitally-enabled sales in 2022 as it consolidates tools into one platform called Avon ON.

In 2021, The Body Shop continued its journey to become a more ethical business with an increased focus on global engagement in the “activist spirit” of its founder, Dame Anita Roddick. With a renewed product portfolio consisting of circularly minded products and packaging, the unit rolled out its “Activist Makers Workshop” concept to 104 stores in 2021, bringing the total to 121. A key feature is the refill station, where customers can reload recyclable aluminum bottles with hair care products, shower gels or hand washes. The Body Shop rolled out 410 refill stations in 34 countries by year-end 2021 and anticipates 400 more will be installed in 2022.

Sales in the Aesop unit surged more than 25.1% due to demand in North America and Asia. Sales also climbed 50% in South Korea. By the end of 2021, Aesop had added 25 stores and nine department store counters around the world, and this year will make its debut (along with The Body Shop) in China.

2021-2022 Highlights: In 2021, Natura &Co launched Fable Investments, an initiative designed to support innovative Indie beauty companies. By the end of 2021, four companies were part of Fable’s investment portfolio: Perfumer H, a British artisan fragrance brand with stores in London and Paris; Maude, a sexual wellness company; Loli, an organic, zero-waste beauty brand; and Stratia, a science-based skincare brand.

Looking Ahead: The company’s Q2 2022 performance continued to reflect challenging times. Net revenue was up 0.4% with digitally-enabled sales representing nearly 50% of total sales.

Beauty Sales: $7.1 billion

Major Products: Four major fragrance, personal care and cosmetic brands sold in 110 countries: Aesop, Avon, Natura, The Body Shop

New Products: Avon ANEW Skin Reset Plumping Shots, Avon Far Away Beyond fragrance, Avon Cannabis Sativa Seed Oil, Natura Ekos Castanha skin care, Natura Lumina Tratamento Pró-Reconstructor hair care, The Body Shop CBD Skincare range, Aesop Sublime Replenishing Night Masque, Aesop Citrus Melange Body Cleanser

Comments: 2020 was off to a good start as Natura &Co (Natura, The Body Shop, Aesop, Avon,) welcomed Avon to their group portfolio. By the next month, the world had dramatically changed. The global company used its experience gained when Covid-19 first appeared in China to make changes in other regions—and quickly pivoted to producing essentials such as hand sanitizer. They also offered community support through programs such as the #IsolatedNotAlone campaign, to respond to increased reports of domestic violence during the pandemic. The four companies that form the group are committed to generating positive economic, social and environmental impact.

Despite the overall challenges faced in 2020, ramping up their digitalization efforts for online shopping—via digital brochures and new apps—and ensuring their more than 8 million consultants and representatives could continue to work during lockdowns—saved the day for Natura &Co. The Brazil-based multinational attributed the growth, in large part, to digital technologies, which led to a 107% increase in social selling and e-commerce sales across the group.

Corporate sales rose 12% in 2020 to $7.1 billion. By segment, Natura &Co Latin America reported a 9.4% sales increase to $3.9 billion; Avon’s sales rose 2.9% to $1.7 billion, The Body Shop’s sales increased 32.4% to $1 billion, and Aesop’s revenue rose a dramatic 50% to reach $365,000.

Natura says it’s on track to create a common culture for all of its brands, starting with Latin America, where it has created a fully integrated business unit comprising all four brands. Now, Natura is rebuilding Avon, relaunching the brand and implementing a new business model to create sustainable and profitable earnings opportunities for its representatives.

In November 2020, a third quarter report highlighted strengthened capital structure, launch of &Co Pay financial services platform and certification of Aesop as a B Corp. Fiscal results showed a strong growth in revenue in the third quarter, significantly outperforming the global Cosmetics, Fragrance, and Toiletries market, as the sustained ramp-up in digital sales across all brands continued.

2021 Highlights

In March, The Body Shop expanded its refill and recycling offerings worldwide, starting with refill stations in 47 stores in France and expanding to over 400 globally. The brand plans to have all of its stores equipped within the next five years. Just visit one of these stores to pick up your refillable 250ml aluminum bottle, choose from a selection of shower gels, liquid hand soaps, shampoos and conditioners, and fill it up. Once you’ve finished the bottle, give it a rinse, bring it back and refill it. The selection of available products will vary from 6-12, depending on the store size. In addition, the brand’s entire formulations portfolio will be certified by The Vegan Society by the end of 2023

After unveiling its 2030 sustainability vision, Commitment to Life, Natura &Co reached a new milestone by becoming the world’s largest B-Corp certified company. It also achieved important targets in sustainability in 2020. The Natura brand avoided 32% in emissions, which is equivalent to 162,000 tons of COâ‚‚ emissions of greenhouse gas and all four brands launched their plans to become Net Zero by 2030 on Scopes 1, 2 and 3. Finally, Natura &Co replaced 2,489 tons of virgin plastic for recycled alternatives, equivalent to more than 120 million PET bottles.

A key highlight of the quarter was the strengthening of Natura &Co’s capital structure with the successful completion in October of a $1 billion capital raise. Roberto Marques, executive chairman and Group CEO of Natura &Co, stated: “The successful raising of $1 billion in bonds linked to sustainability targets is a milestone for Natura &Co and for Natura, and is the largest-ever single issuance by a Brazilian issuer.”

Natura &Co also made further advances in its integration of Avon, one year after it became part of the Group’s family of brands.

In July, Avon launched a fragrance that claims to be the world’s first to use “upcycled vanilla extract.” Called Far Away Beyond, the scent is based on a vanilla note made from 100% upcycled vanilla beans, which would otherwise be discarded.

Looking Ahead

Consolidated net revenue in Q2 rose 36%, to $1.9 billion (again outperforming the CFT market), driven by double-digit sales growth at all four of the Group’s iconic brands, including boosts from Avon both in Latam and International. Growth across the board was attributed to sales in digital social selling and e-commerce across all brands, despite continued impacts from Covid-19 in key markets. Digitally-enabled sales, which include online sales (e-commerce + social selling) and relationship selling using their main digital apps, reached 51% of total revenue.

At The Body Shop and Aesop, online sales were recorded at four times above their Q2-19 pre-pandemic levels and represented 10% of total sales.

The company reported that Avon’s integration “is progressing well.”

In June, Natura &Co also marked the first anniversary of its Commitment to Life – 2030 Sustainability Vision. In the quarter, the group announced the launch of a new data tool to aid conservation of the Amazon and unveiled its ambitions to be the first multinational to ensure that its workforce reflects the demographic composition of the societies in which it operates.

Beauty Sales: $3.6 billion (Natura, The Body Shop, Aesop, Avon)

Major Products: Fragrances, cosmetics and personal care sold under the Aesop, Natura, The Body Shop and Avon brands.

New Products:

• Natura-ChronosCH, Natura Tododia line (relaunch)
• Chronos Acqua Biohidratante moisturizer, Lumina haircare
• Ekos Alma fragrance, The Body Shop Shea Butter Range

Comments: Eco-committed Natura &Co’s proposed acquisition of Avon Products, Inc. to its portfolio was announced in 2019—and finalized in 2020. In December 2019, they announced that they had received all regulatory approvals required to complete the deal that the Brazilian cosmetics giant says creates the fourth largest beauty company in the world. Avon joined the group that includes Natura, The Body Shop and Aesop. (Post acquisition, Natura controls 76% of Avon, while the remaining 24% belongs to the shareholders of the U.S. company.)

In 2019, net sales rose 7.8%, to reach $3.6 billion for the Natura, The Body Shop and Aesop brands.

According to Natura, the group combined with Avon will reach more than 200 million consumers worldwide through multiple channels—which will result in future annual sales of $10 billion, 6.3 million representatives and consultants, 3,200 stores and a footprint in more than 100 countries.

In 2019, Natura launched its Natura Innovation Challenge—Zero Waste Packaging.

2020 Highlights

Natura &Co closed its acquisition of Avon in early January and appointed a new senior leadership team to drive the company’s next phase of growth.

In March, Natura &Co posted a strong fourth quarter of 2019, with revenue growth in all three of its brands, Natura, The Body Shop and Aesop.

The quarter also saw a number of advances in sustainability for Natura &Co: Natura became the first beauty company in Brazil to obtain the Green Patent from the National Institute of Intellectual Property, for the use of residue assets from Brazil’s biodiversity as production inputs, while The Body Shop won Ethical Corporation’s Plastics Innovation award for its Community Fair Trade program.

Natura’s digital platform now has over 900,000 users in Brazil and online sales grew double-digits.

The Body Shop continued its transformation plan, with full-year sales up 6.3%.

Aesop delivered “an exceptional performance,” with revenue up 25.78% in Brazilian Reals and 13.4% at constant currency. Aesop opened seven new signature stores in the period, bringing the total to 247.

Hit hard by Covid-19, in May, Natura & Co posted a first-quarter net loss of $140 million—during its first quarter with Avon—but digital social selling and e-commerce sales grew exponentially; net revenue increased by 1.9%.

Group e-commerce sales grew by nearly 250%. During the quarter, e-commerce grew 150% at Natura and Avon combined, 300% at the Body Shop and over 500% at Aesop.

Natura &Co also focused its efforts on ensuring supply of essential products such as soap and hand sanitizer, whose production rose 30%, and the group made donations of over 10 million units.

Looking Ahead

Natura &Co says its “rapid pivot to online and digital platforms” led to 225% growth in e-commerce sales, allowing the Group to outperform the global Cosmetics, Fragrance and Toiletries market in the second quarter.

Consolidated sales stood at R$7.0 billion, down only 12.7% despite the unprecedented global impacts of the Covid-19 pandemic.

During the quarter, the company launched the Commitment to Life, a sustainability plan through 2030, amplifying Natura &Co’s initiatives to help solve some global challenges, including the climate crisis and protecting the Amazon, the defense of human rights, ensuring equality and inclusion and embracing circularity and regeneration.

Beauty Sales: (Natura, The Body Shop and Aesop) $3.5 billion

Major Products/Brands:

• Natura
• Aesop
• The Body Shop and Avon (acquisition)

New Products:

• Essencial Oud and Kaiak Aero (male and female fragrances)
• Luna Intenso (female fragrance) Natura Homem Cor.Agio (male fragrance)
• Chronos sistema de clareamento (Chronos Clearing System)
• Una Nude Me Base Sérum FPS 18 (Una Nude Me Serum Foundation SPF 18)
• Tododia Lima e Flor de Laranjeira (Tododia Lime and Orange Flower, it comprises body care products)
• Yogurt Leite de Amêndoas (Almond Milk Body Yogurt)
• Men’s Grooming collection
• Japanese Cherry Blossom Strawberry Kiss line (Eau de Toilette, Body Mist, Shower Gel, Moisturizing Cream and Lotion)
• Drops Of Youth Eye Treatment Mask 2 in 1
• Parsley Seed Extended Anti-Oxidant Skin Care Kit
• Resurrection Rinse-Free Hand Wash

Comments: Ecological-minded Natura &Co may be rounding out our Top 20 but it has by far made the biggest news splash in the last year after acquiring Avon Products Inc. in a huge May stock swap that instantly catapulted the Brazilian company into position as the world’s fourth largest multi-channel, direct-selling global beauty giant. Avon and Natura have over 6.3 million  combined consultants and representatives, a global footprint through 3,200 stores, and will together work with an expanded digital presence. Natura &Co projected the team’s more than 40,000 associates present in 100 countries will contribute to annual gross revenues topping $10 billion.

As part of the transaction, a new Brazilian holding company, Natura Holding S.A., has been created. Based upon the fixed exchange ratio of 0.300 Natura Holding shares for each share of Avon common stock, Natura &Co’s shareholders will own approximately 76% of the combined company, while Avon common shareholders will own approximately 24%. Upon closing, the board of the combined company will consist of 13 members, three of which will be designated by Avon. The transaction is expected to close in early 2020.

Prior to its big Avon transaction, Natura &Co’s 2018 consolidated net revenue increased 36% to $3.5 billion, which includes contributions from Natura, The Body Shop and Aesop, the group’s three companies.

In 2018, the group set out to revitalize its direct selling model, which it renamed “Relationship Selling.” Of its total 1.7 million Natura Beauty consultants in Brazil and in the Latin American operations Natura &Co ended the year with about 1.06 million consultants in Brazil, a 6.3% reduction compared with 2017, however the company explained the slight decrease in the size of the channel was expected and was offset by an ongoing increase in productivity. The company pointed to its 2018 Christmas campaign as its “best ever” demonstrating a ninth consecutive double-digit increase in consultant productivity. Natura maintained leadership in its three key categories (perfumery, body and gifts), and gained ground in others. In Latin America, the brand marked growth in all countries, especially in Argentina, despite macroeconomic challenges, as well as in Colombia and Mexico.

No doubt boosted by the launch of 233 new products to the Brazilian market in 2018, the company’s online sales platform in Brazil boasted more than 5 million registered consumers and internet sales were broadened to reach Argentina, Chile, France and the United States.

On the packaging front, Natura &Co debuted “collaborative robot” systems in its Natura Plant production line and in its Shared Services Centre to automate repetitive packaging line movement tasks like fitting lids and valves, which the company says represents a risk of “occupational disease” for employees. The company also initiated an IoT system (Internet of Things) and additional software to optimize its packaging lines to improve production performance.

News of Note 2019

In May 2019, Natura &Co announced it would invest up to $5 million in new brands in the beauty and wellness segments in Europe and the U.S. through venture capital funds.

The Body Shop is transitioning to using Fairly Traded recycled plastic in its 250ml haircare bottles. The bottles (not caps) will contain 100% recycled plastic comprised of 15% Fairly Traded recycled plastic. By the end of 2019, 250 tons of Fair Trade recycled plastic will be used in about three million 250ml haircare bottles, eventually widening the use of these plastics across all PET plastic used by The Body Shop and within three years scaling up to the purchase of over 900 tons of Community Trade Recycled Plastic.

In August, Natura &Co announced a strong Q2 performance. Consolidated net revenue grew nearly 10% to $82 million on a reported basis and 7.7% on an adjusted basis. The group also made a sustainability commitment ahead of this September’s UN Climate Action Summit, joining 27 other companies in a pledge to hold the increase in the global average temperature to 1.5°C above pre-industrial levels and reach net-zero emissions by 2050, underscores the company’s commitment to contributing to a positive economic, social and environmental impact.

Just last month Natura announced it was creating a subsidiary to manage its Singapore operations, as the conglomerate aims to significantly boost its sales in Asia.

Beauty Sales: $2.9 billion — including Aesop and The Body Shop (FY 2017 Beauty Sales: $2.4 billion)

Major Products/Brands
Cosmetics and personal care products sold through:

• NaturaBrasil, Aesop and The Body Shop

New Products

• NaturaBrasil fragrance collection; NaturaBrasil Chronos line;
• The Body Shop Amazonian Saviour;
• The Body Shop Chinese Ginseng & Rice Clarifying Milky Toner;
• The Body Shop Mango Yogurt;
• Aesop Coriander Seed Body Cleanser

Natura & Co, Formerly NaturaBrasil, Aims To Be a Force for Good

Natura & Co revised its corporate name from NaturaBrasil—due to their acquisition of Aesop and The Body Shop (the purchase of The Body shop from L’Oréal closed late in 2017), uniting all three brands under one umbrella. The conglomeration aptly reflects the eco-centric beauty company’s push toward global expansion. And additional assets may be in the works. At presstime, rumor had it that Natura had made a bid for Avon, which the UK-based company denied, but analysts say such a deal could be beneficial as the two direct seller companies offer similar structures and reliance on sales representatives and more.

Natura & Co’s group sales reached $2.9 billion in 2017. NaturaBrasil, alone, reached 2.4 billion. Brazil accounts for the lion’s share of the revenue at about 73%. Sales for 2017 show the U.S. and France contributing 0.1%.

The company operates on a value system that the world is interconnected, and that business can be a force for good. This ethos is reinforced by third party accolades including the United Nations Champions of The Earth Award and Natura’s status as a B (Benefit)-Corporation.

To date, Natura has saved nearly 635,000 acres of Amazon rainforest; the company remains dedicated to sustainability, community development and an inclusive vision of beauty.

2018 Highlights

In January, NaturaBrasil, launched its new Chronos skincare line in the U.S. market. Chronos is an #AgePositive skincare line that focuses on the needs of the skin at every life stage, and so “seeks to change the conversation surrounding age in the context of beauty.” All packaging is made of 100% post-consumer recycled materials and is recyclable. All products are UEBT certified which assures that natural ingredients are sourced with respect for people and biodiversity. It attests compliance with the UEBT Ethical BioTrade Standard requiring the conservation of biodiversity in the sourcing area and support of provider communities through equitable prices and local projects.

Late in January, NaturaBrasil opened its second U.S. boutique, this one at the Garden State Plaza Mall in Paramus, NJ. The first flagship store opened in 2017 on Elizabeth Street in Manhattan’s Nolita district. Both of these U.S. stores reflect the brand’s sustainability efforts and values with décor including locally sourced, repurposed items, reclaimed wood and live plants.

In May, NaturaBrasil was named winner of Cosmetic Executive Women (CEW) Beauty Insider’s Excellence in Sustainability Award. It recognizes a beauty brand that seeks to reduce its environmental impact and has moved further toward the goal of sustainability in multiple facets of its business.

Upon acceptance of the award, Roger Schmid, global sustainability advisor at NaturaBrasil, said, “Natura strongly believes in the transformational power of the beauty industry, with the use of technology and network innovation to develop solutions that promote environmental and social change. We encourage people to turn enterprise into an opportunity to create positive impact within four sectors: economic, social, environmental, and cultural.

In June, NaturaBrasil launched a new line of fine fragrances (gender-neutral scents retailing at $95 per bottle). Each scent was developed to provide a glimpse of travels through Brazil, providing sensual snapshots of the country’s heat, flora, and seductiveness. All fragrances are made with 100% organic alcohol and presented in all-recycled packaging, adhering to NaturaBrasil’s commitment to sustainable and ethical business practices.

Beauty Sales: $2.4 billion (est.)

Major Products/Brands: Chronos, Ekos, Humor, Una and Todo Dia skin care and cosmetics.

New Products: Ekos Flor do Luar and Ilía fragrances; Natura Homem Essence men’s fragrance; Una Matific Liquid Lipstick, Una Blur instantaneous effect cosmetics; Natura Mamãe e Bebê baby care.

Comments: 2016 was a year of broadened outreach efforts for Natura. Despite relatively flat sales from fiscal 2015-2016 due to a weakened Brazilian real, Natura maintained stable sales and its 30% growth rate in Latin America, where it earns 32% of its net revenue. The sales were no doubt boosted by another feat: Natura topped more than 500,000 sales consultants in the region.

The company’s digital platform, Rede Natura, doubled in size in 2016, last year establishing itself in Chile and Argentina, and the company said it is considered to be one of the biggest digital sales channels for beauty products in Brazil. The platform is not only a resource hub for more than 100,000 digital Natura consultants who assist more than 1.7 million registered users, since April, Rede Natura also started selling directly to final consumers. The hybrid online system has boosted sales results and achieved its operational break-even point. Visits to the website grew by 78% in 2016 and the conversion rate increased by 58%. To a similar end, the company also relaunched its Natura app to give consumers the freedom to purchase products when and where they want.

In April Natura opened its first eponymous store in São Paulo and four other store openings subsequently followed. The company also expanded its operational reach in Brazilian drug stores. The moves were to reach customers who indicated they weren’t used to buying products from consultants. In December, the company opened its first retail store in New York, where it sells the Ekos line and plans to also offer the Chronos and Mamãe e Bebê (Mother & Baby) lines in the future.

In late 2016, Natura finalized the acquisition of Aesop, the Australian brand it bought in 2013. Since being taken over by Natura, Aesop’s business has quadrupled in size, tallying 41 new stores globally across 20 countries. At present, Aesop boasts a portfolio of 110 products with 80 different formulas, and launches an average of 10 new items per year.

Finally, Natura extended its outreach inward. First, the company started implementing new methods to engage and retain its consultant sales force. Natura also began offering educational opportunities to consultants and their families, such as discounts and scholarships for university education. So far, more than 11,000 people have taken the company up on this program.

News of Note in 2017

This June, Natura announced it was in talks with L’Oréal to purchase British cosmetic and personal care brand The Body Shop. The deal, valued at about $1.1 billion,  recently closed, and will greatly extend Natura’s global product reach (the Body Shop products are sold in 66 countries) and at the same time, breathe new life into The Body Shop, which analysts say is in “great need of a turnaround.”

Looking Ahead

In 2016, Natura formalized its existing relationship with Brazilian startup companies, launching a program called Natura Startups. The aim is to create business opportunities in partnership with innovative companies, promoting an entrepreneurial environment and connecting startups to opportunities within the Natura company.
In 2016, a total of 4.3% of all of Natura’s packaging was made using post-consumer recycled materials. The company is working toward a goal of at least 10% of all its Natura Brazil packaging will be made of post-consumer recycled material by 2020.

Beauty Sales: $2 billion

Major Products/Brands: Cosmetics, fragrance, hair care, skin care, body care, sold through a direct-selling model including brands Aesop, Amó, Aquarela, Chronos, Ekos, Mamãe e Bebê, Kaiak, Kriska, Natura, Tododia, Sou, Una.

New Products: Ekos Ucuuba and Murumuru, Natura Homem colognes; Esta Flor fragrances; Tez moisturizers, soap and multi-purpose wipes; Amis fragrance line for pre-teens; Una moisturizer and deodorant oil; Faces lip color collection.

Comments: Though Natura continues to keep its chin up, the stars did not align for a much-hoped 2015 turnaround. The company efforts were hampered by Brazil’s tax load increase and subsequent exchange devaluation. If that wasn’t enough, for the first time in 23 years, the Brazilian cosmetics, fragrances and toiletries segment shrank by 6%, which syphoned an additional 3.6% from Natura’s 2014 net revenue, dropping that total to $2 billion.

But it wasn’t all bad. The company continued its quest for international expansion, reporting that 2015 international operations already account for almost 30% of Natura’s net revenues. In the last five years, the average growth rate of the company’s international operations is 47%, in regions comprised of Argentina, Colombia and Mexico, as well as Chile, Peru and Bolivia. Natura also maintains direct sales and retail operations in France.

In 2015, Natura also branched out to introduce a multichannel sales model, tapping its daily beauty care line, Sou, as the test brand for commercialization in drugstores. The trial run was initiated in September and the resulting sales volume was higher than expected in the first months, with the Sou brand becoming the bestseller in specific categories, such as bar soap.

What’s more, Natura helped its more than 1.37 million direct-selling product consultants harness the power of technology when it rolled out Você Conect@, a suite of digital tools designed to manage product and client more efficiently.

On the new product front, Natura heralded the launch of its new Ekos Ucuuba line as a convergence of ecological and innovation work within the Amazon region. The moisturizing product line is formulated with the fruit of the ucuuba tree. While the tree is threatened with extinction due to increased exploitation for timber over the last 30 years, Natura’s commercialization of the ucuuba seeds has been essential for reducing the degradation of the species, with wood now being repurposed for stakes, broom handles, door frames and roofing.

The line’s packaging is also eco-efficient, comprised of 50% green PET bottles (made from renewable plant-based material), 50% post-consumer recycled PET; 40% of the cartons are made from post-consumer recycled paper.

Looking Ahead

In 2015, Natura conducted an Environmental Profit and Loss (EP&L) Accounting study to measure its impact on the environment. The study was based on factors such as GHG emissions, water, waste and land use and occupation.

While the company already implements environmentally conscious decisions, including the use of organic alcohol for all of its perfumery production and replacing fossil-based ingredients with plant-based substitutes (83% of the company’s formulations come from renewable sources), Natura expected the EP&L to drive a reexamination of company innovation, distribution and production processes to help achieve its 2050 Sustainability Vision.

Beauty Sales: $2.4 billion

Major Products/Brands: Cosmetics, fragrances, hair care, skin care, body care, sold through a direct selling model including, Amó, Ekos, Tododia, Aquarela, Una, Mamãe e Bebê, Natura, Chronos, Kaiak, Kriska; Aesop.

New Products: Ekos-Maracujá Three-Phase Shower Oil, Chronos Day protective face cream SPF30, Ekos-Intense Exfoliating Foot Care, Kaiak Intenso for Men, Amó Sussurro for women.

Comments: Brazil has slid into an economic slump, but Natura—which was founded on the principles of creating and selling services that promote well-being and being well, as well as sustainable development—attributes upgrades in these operational areas for sales totals that were lower than expected in its home quarters.

Overall, corporate sales in 2014 topped out at $2.8 billion, up from $2.7 billion the year before. While Natura said that sales “were well below expectations” in Brazil, with 1.9% growth, “the overall target market regained vigor, growing some 10%.” Even though figures did not meet expectations, sales remained strongest in Brazil, followed by Argentina, Chile and Peru; and Mexico and Colombia.

Products are sold through more than 1.3 million Natura consultants in Brazil and more than 400,000 in Argentina, Chile, Colombia, France, Mexico and Peru. Natura has allocated billions to upgrade for the future, with new facilities for technological, production and logistics advancements, while also strengthening and enhancing its digital technology platform in order to expand its Latin American operations. More than 98% of Natura orders are now placed online.

Aesop, an Australian premium cosmetics company, which Natura acquired at the beginning of 2013, operates in 14 countries and ended 2014 with 98 stores (18 of which opened in 2014).

Natura launched a new sustainability vision during the year, designed to take them to 2050. The plan “is intended to transform Natura into a company that generates positive impacts in every dimension of its activities,” improving both the environment and society. By 2050, Natura aims to incorporate packaging with a reduction in weight of at least 50% in comparison to regular/similar packaging; or composed of 50% potentially marketable recycled materials and/or renewable non-cellulosic materials that do not increase mass.

One example of sustainable packaging in 2014 points to the refills for the Natura Ekos Frescores line of fragrances, made from 100% recycled post-consumer PET containers, and thus generating 72% fewer greenhouse gas emissions. Natura says that this launch makes them the first major cosmetics brand to use this type of material in the perfume category. After working with local glass recyclers, at the beginning of 2015, the company included 20% recycled post-consumer premium category glass in the packs of some perfume brands.

News of Note

At the end of 2014, Natura obtained “Benefit Corporation” status, or B Corp. This sustainability certification is granted by B Lab, a non-profit based in the U.S., created to encourage high environmental standards. There are more than 1170 B Corp businesses, but Natura is the largest, and first publicly traded company to obtain the certification.

In 2014, Natura was listed on the New York Stock Exchange’s Dow Jones Sustainability Index.

Beauty Sales: $3.3 billion

Major Products: Direct-sell cosmetics, fragrances and personal care, sold under brands including Ekos, Natura, Aquarela, Una, Chronos, Tododia, Maquiagem, Mama e Bebe, Kaiak fragrances, Vitaplant hair care, Natura fotoequilibrio sunscreens and Amó fragrances, Aesop.

New Products: Natura UNA BB, Ekos Creamy Hand Balm, Ekos Andiroba Massage Oil, Chronos Day Protective Face Cream SPF 30, Sou personal cleansers, Natura Faces Ousada Desodorante Feminino, Mamãe e Bebê Leg and Foot Cream Care Gel.

Comments: With more than 1.4 million sales consultants in Brazil, Argentina, Chile Mexico, Peru, Colombia and France, direct seller Natura, with its focus on natural ingredients, biodiversity, and environmentally responsible development, continues its dominance in South America. And, according to the company, results in 2013 strengthened its goals to extend its frontiers far beyond its current operations.

Net revenues in 2013 reached $3.3 billion.

An estimated 80% of Natura’s sales are generated inside of Brazil, with the remainder coming from the rest of Latin America. Industry experts have said that Natura’s five-year goal is to reap 10-20% of its business in other international regions.

During 2013, the Brazilian cosmetics leader continued to invest healthily in its operations, its logistics model and, increasingly, in information technology, aiming to provide consultants with easy access and services to customers through an expansive electronic network.

Alessandro Carlucci, executive president of Natura, says the company’s dictum of “well being well,” based on relationship selling and on business conduct aligned with sustainable development, “has more than shown its potential for conquering new markets and consumers, be it in the countries in which we already have a presence, be it in others.” He said the robust results in the company’s Latin American operations reinforce this thought—in 2013, sales in this region accounted for 14% of business—an annual rate of 30% in recent years, and increasing in profitability. In Mexico, Natura now boasts 100,000 consultants.

In Brazil, 2013 started out slowly, but picked up speed in the second half. Sales rose 13% last year, following full year results for Aesop, the premium Australian cosmetics brand with operations in Oceania, Asia, Europe and North America. An Aesop store is opening in Brazil this year. International sales accounted for more than 14% of sales last year, as sales in Argentina, Chile and Peru rose 34% in local currencies and newer markets in Mexico and Colombia posted a 24% increase in sales.

Natura continues to stress the importance of sustainability as a driver of innovation and new business. The company retains its focus on a sustainable development model, and achieved its goal in December 2013, to reduce greenhouse gas emissions by 33%.

During the year, Natura launched its Natura Network in Sao Paulo—which focuses on digital technologies and connectivity as a powerful means for direct selling—and plans to expand it widely to other regions.  The aim is to achieve a two-day delivery time for products ordered. The Natura Network enables each consultant to have her/his own Internet page through which she/he may build a relationship with consumers and sell products.

Environmentally Responsible Packaging

Bent on advances in sustainable packaging, Natura notably launched a line of personal care products called Sou, with products in innovative stand-up pouches with a teardrop shape and a flip-top cap. According to Natura, the flexible packs require 70% less plastic than rigid plastic containers of the same volume. Natura also claims that a roll with 1,000 pouches occupies the same truck space as 28 empty bottles, marking a 60% reduction in carbon.

In addition to launching refills in the same pouch format as the Sou line, the Natura Plant brand incorporated new packs produced with green plastic, generating fewer greenhouse gas emissions. The brand portfolio was renewed, with new formulations and labels containing product descriptions in Braille for the visually impaired

The Aquarela makeup brand was relaunched with a collection inspired by the Brazilian Modernist movement, containing a lighter formulation, new textures and new pack designs developed to reduce environmental impact.

In March 2014, Natura opened an innovation center in Soho, New York—and said it was “looking for partners” to expand its business.

Second Quarter Results

In the second quarter of 2014, Natura reported net revenues of $804 million, up more than 5% for the same period last year.

The company’s Natura+ portfolio has been developed with 15 partners—“small and medium-sized entrepreneurs who develop creative, original proprietary products” and share Natura’s vision.

Natura’s new Sustainability Vision   was announced in April. The company now monitors and discloses the percentage of post-consumer recycled content in its packaging, the percentage of packaging material that is recyclable and the percentage of eco-efficient packaging (those that represent a reduction of at least 50% in weight compared to a similar pack, or which consists of 50% PCR material) used.

Beauty Sales: $3.1 billion

Major Products: Premium and mass personal care products, fragrances and cosmetics under brands including Ekos Natura, Aquarela, Una, Chronos, Natura Naturé, Vitaplant.

New Products: Natura Una deo parfum, Tododia line body spray, Chronos Tinted sunscreen, Natura Amó, Natura UNA makeup.

An eye on retail? The acquisition of like-minded Aesop could mean a new cycle of growth for Natura.

Comments: Brazil-based direct seller Natura is a company that strives to be corporate, socially and environmentally responsible, and says that due to “its corporate behavior, the quality of its relationships, and the quality of its products and services, Natura is bound to become an international brand.” The majority of the company’s sales are currently in Latin America, and the company touts more than 1.5 million consultants, up more than 10% over the previous year. In Brazil, alone, there are about 1.2 million consultants. The company also maintains an operation in France.

Thanks to Brazil’s strong Personal Hygiene, Fragrances and Cosmetics market, Natura’s corporate net revenue increased 13.5%, to reach $3.1 billion in 2012. Personal hygiene showed the most growth, but Natura’s position weakened due to increased competition, particularly in hair care and deodorants. The company’s market share in the Cosmetics and Fragrances categories increased.

For Brazil, alone, Natura’s net revenue hit nearly $2.7 billion, a 10.3% increase. Combined net revenue for Argentina, Chile and Peru came in at about $238 million. For Mexico and Colombia: $110 million.

Natura says it started a new growth cycle in 2012 and the double-digit results obtained resulted from investments made during the past two years. Among the improvements: The company reduced the delivery time to consultants, doubled the number of orders delivered within 48 hours, and reached the lowest rate for products out of stock in the past 10 years.

The company has put great effort into connecting with consumers via live demonstrations, social media and Internet efforts and has reaped good results.

It even launched a television program that promotes its key principles—well-being in all its forms.

Innovation remains at the heart of Natura’s product development as well as its corporate and sustainability practices. Notable launches in 2012 included brands in both premium and lower range segments that outsold corporate expectations. Natura Una deo parfum, a joint project with IFF, was designed for the premium segment, and sold more than 600,000 units in its first launch. In the lower price range, the Tododia line body spray sold more than 3.5 million units in its initial launch.

Applicators also make a difference, such as with Mamae e Bebe (Mother & Baby), whose packaging now includes valves to make application easier at bath time.

While Natura maintained its position as the preferred brand in the Cosmetics, Fragrances and Toiletries market, with 46.5% market share, it was 50 basis points lower than in the previous year. The consumer loyalty indicator also decreased, from 66% to 51% in the period, both indicators of the increasing competition in the industry. Brand awareness increased in Argentina, Chile and Mexico last year.

Natura continued to focus on its supply chain, monitoring a number of performance factors of its partners. The bonds established with suppliers are particularly relevant for Natura’s expansion plans for Latin America in the coming years. Natura’s goal is to have, in three years, 30% of the products sold abroad in this region (except Brazil) produced locally by third party suppliers (manufacturers of finished products on behalf of Natura).

In the second half of the year, Natura was able to report a decrease in product delivery time from six days to 4-1/2.

For the second consecutive year, Natura ranked as the second most sustainable company in the world by the Canadian organization Corporate Knights, and by Bloomberg.

In January, Natura announced that it had entered into a definitive agreement with Aesop, the Australia-based personal care company. Natura acquired a 65% stake in Aesop for approximately $68 million in cash, which included the anticipated acquisition of Aesop’s distributors. Natura’s investment will help Aesop to grow internationally. While they continue to operate independently, both organizations share competencies and regional expertise that could lead to Aesop potentially entering the Brazilian market and Natura exploring the concept of signature stores in select markets.

Beauty Sales: $3.1 billion

Major Products: Cosmetics, fragrances and toiletries, including Natura Fotoequilíbrio sunscreen; Natura Mamãe e Bebê; Natura Plant; Natura Ekos; Natura Faces, Aquarela and Una makeup; Chronos skin care, Natura Naturé baby care; Vitaplant hair care; Natura Kaiak.

Kaiak Urbe was a new launch for Natura men’s line.

New Products: Kaiak Urbe, Chronos Hydratante, Natura Erva Doce Bar Soap, Natura Homem shaving balm.

Comments: With all the economic uncertainty in the world, direct seller Natura’s primary markets—Brazil and Latin America—stand apart as growth continues to bloom—though 2011 was not its greatest growth to-date. Still, Brazil is expected to expand faster than the industry as a whole. According to Natura—and many others—Brazil is positioned to become the second largest market in the cosmetics and toiletries industry.

Sales at Natura reflect the trend, rising 8.9% last year to over $3 billion. In Brazil, sales increased 6.8% to $2.7 billion. The company notes that during the past five years, Natura has nearly doubled sales and its consultant base—and all while pursuing a sustainable business model. The company’s 1.4 million consultants serve nearly 100 million consumers, and annual product orders nearly doubled from 9 million to 17 million over the period. Natura now serves 60% of Brazilian households. In 2011, the company made its biggest investment ever—more than $210 million to expand production, develop logistics and improve technology. With this effort, Natura hopes to get products to sales reps, and thus consumers, more quickly and efficiently. Natura is also intent on increasing local manufacturing and distribution.

Natura estimates that the size of the cosmetics, fragrances and toiletries market it operates in was worth $65 billion last year (compared to $63 billion for the U.S.).

In the coming year, the company plans to focus on incorporating digital technology and social media into its marketing mix.

For the first half of 2012, sales of products and services reached nearly $1.7 billion. Revenue was again strongest in Brazil, followed by Argentina, Chile and Peru. Growth was more robust in the second quarter than it had been for the same period in the previous year. The number of consultants also increased.

Beauty Sales: $2.9 billion

Major Beauty Brands/Products: Natura brought 168 products to market during the year.

Cosmetics, fragrances and personal care brands including Ekos soap, hair care and oils; Natura Faces, Aquarela, Una makeup; Chronos skin care, Naturé baby care, Mamãe e Bebê, Vitaplant hair care; Amó fragrances.

New Products: Chronos Matte Hydrating Fluid 30+, Mamãe e Bebê Vegetable Massage Oil, Diversa Lengthening Mascara, Kaiak Pulso men’s fragrance.

Comments: Brazilian-based direct sales firm Natura reported a strong year in 2010 as it boosted domestic sales and continued with its growth plan to make strong footholds elsewhere in South America and Latin America and expand globally. Brazil led, followed by Chile and Mexico.

Net revenues in 2010 reached $2.9 billion, rising more than 21% over the previous year. An eco-minded company, Natura says its mission is “to create and sell products and services that promote well-being/being well.” To this end, they strive to produce natural beauty products using sustainable packaging. Product launches reached a three-year high with 168 brought to market.

Despite advances made, the company says it continues to face challenges in providing its more than 1.2 million sales consultants with the level of service they require. In 2008, Natura created an operating plan with initiatives for both immediate and long-term success, several of which have played a role in the annual figures. In addition to fostering consultants, the company also focused on key brands in its product portfolio such as the Una makeup range, Amó perfume and Chronos anti-aging facial cream.

Natura also invested in its ad spending. Now, to supplement its original plan, Natura has implemented a new, long-range plan called 2030 Vision.

Sustainability-wise, Natura struggled against a deadline of 2011 to reduce greenhouse gas emissions by 33%, and extended its target date to 2013. By 2011, the reduction achieved was 21%. In this vein, the company launched its first refill packaging made of polyethylene from sugar cane, a renewable source of energy. In addition to being 100% recyclable, it reduces greenhouse gas emissions that cause global warming by 58% compared with common plastic.

Natura also reduced relative water consumption by 10%, thanks to efficiency measures.The company also increased focus on the “socioenvironmental” impacts of its supply chain, in an effort to improve the selection of suppliers.

In 2010, the company received a number of awards including making the top 25 list for customer service in Brazil and Best Packaging for Cosmetics and Personal Care for its New Natura Chronos Line, awarded by the Brazilian Packaging Association.

In Mexico, Natura is transitioning to a new commercial model, which it calls the Sustainable Relations Network. This model is in line with the characteristics of the local market, as it offers a more attractive development and growth plan for consultants, integrating economic, social and environmental issues, accelerating growth and reinforcing Natura’s value proposition in Mexico, according to the company.

Beauty Sales: $2.4 billion

Major Products: Cosmetics, skin care, fragrances, hair care, bath/body products sold under brands including Chronos, Kaiak, Ekos, Mamãe e Bebê.

New Products: Fragrances—Amó, Kaiak Pulso, Natura Paz e Humor and Natura Águas Lavanda; Bath/body—Tododia Verão, Tododia Todanoite moisturizing cream and body scrub, Naturé shampoo and conditioner for fast drying.

Comments: Natura is the largest Brazilian manufacturer of cosmetics, toiletries and beauty. In 2009, the company devoted to “creating and selling products and services that promote well-being/being well,” marked its 40th anniversary with some major accomplishments. Net revenues totaled $2.4 billion, 18.6% higher than in 2008, increasing in both foreign operations and in Brazil. The company holds 22.5% of the Brazilian market, up from 21.4% in 2008. The company also operates in Argentina, Chile, Colombia, Peru and Mexico. Elsewhere, in Bolivia, Guatemala, Honduras and El Salvador, the company works with local distributors. Natura has 6,200 direct employees and more than one million sales representatives.

With sustainable business a priority, in 2009, Natura succeeded in reducing its volume of relative greenhouse gas emissions by 5.2%. The company also received a slew of domestic awards in 2009, including most Admired Company in Brazil, Most Admired Company in the Hygiene, Cosmetics and Perfumery Industry, Most Admired Company in Commitment to HR, Respect for Consumers, Ethics; and The Most Committed Company to Sustainable Development and Social Responsibility.

In April, Natura celebrated five years of operations in France. First, Natura opened a space at Carrefour in Paris. A year later, Natura introduced its direct sales force. It currently has more than 1,700 consultants in France.

The target market for cosmetics, fragrances and personal care products in Brazil continues to perform well. In the first half of the year, consolidated net revenue was $1.3 billion, up 23% on the same period in 2009.

In all, 52 new products were launched in the first half of this year. Strategies for Mother’s Day and Valentine’s Day reaped positive impacts on sales.

Regarding innovation and in line with Natura’s strategic guideline to continually lower the environmental impacts caused by its packaging, the company announced a partnership with Braskem for the launch of the first cosmetics product in Brazil with packaging made from green polyethylene, which is also known as green plastic. Made from sugarcane, a renewable source, this innovation will help to reduce greenhouse gas emissions. Green polyethylene will be gradually rolled out on its refill packages, beginning last quarter of this year. (Editor’s Note: P&G is also partnering with Braskem on this plastic; for more info, please see the Packaging Spotlight on page 94 in this issue.)

Going forward, Natura will continue to focus on its management model and improve the support for, and expertise of, its sales representatives.

Beauty Sales: $2.1 billion (consolidated net sales)

Major Products: Skin care, fragrances, hair care, cosmetics and bath/body products sold under Chronos, Ekos, Mamãe e Bebê, Amor América and Diversa brand names. New Products: Naturé, Tododia, Amor América and Chronos Politensor de Soja, an anti-wrinkle product.

Comments: Natura, a Brazilian-based directseller dedicated to creating superior products that are also sustainable and that promote well-being, posted strong results in 2008, thanks in part to its multi-year action plan. Consolidated net revenue in 2008 rose 17.7% to $2.1 billion, with positive results in Brazil and Latin America. The company believes that “the economic crisis may reveal great opportunities related to sustainability, encouraging the creation of a new society committed to the prudent use of natural resources, increased social justice, and inclusion.” In addition to Brazil, the company also operates in France as well as in seven countries in Latin America—Argentina, Chile, Colombia, Peru, Venezuela, Mexico and Bolivia. At the end of 2008, Natura counted on 730,000 consultants in the Brazilian operation, a yearon- year increase of 15.5%. The number of consultants in international operations reached 118,000 at the end of 2008, up 37.9% versus 2007, showing the strength and potential of the Natura brand outside Brazil. The company’s action plan, which comprises additional marketing investments, began to show its first results in the second half of 2008, when net revenue in Brazil increased 20.7%, compared to 11.1% in the first half.

DUE, a fragrance from Natura, features parts molded in LNP Thermocomp, a wood plastic composition, supplied by Rexam Brazil.

In keeping with its high regard for native cultures and sustainability efforts, Natura launched a fragrance line called Amor América, with products made from raw materials sourced in the Andes and Patagonia regions. The organic-shaped bottles resemble handcrafted jars and pots made in the areas.

The forward-thinking company also launched Naturé, a line for children, which leads children, in a playful way, to experience their first ideas of the conscious use of water.

One priority in 2009 has been the opening in São Paulo of Natura Houses, where, Natura consultants can gather and try products as well as take part in training sessions.

For the second quarter of 2009, consolidated net revenues totaled $582 million, an increase of 18.8% versus the corresponding second quarter period in 2008, when the results did not fully reflect the action plan.

Natura decided to terminate its operations in Venezuela during the second half of 2009.

Beauty Sales: $2.4 billion

Products/Brands: More than 900 cosmetics, fragrance, personal hygiene items, including Chronos, Natura Ekos, Mamãe e Bebê, Natura Unica, Natura Diversa, Faces de Natura, Tododia.
New Products: 183 product launches in 2007, including Chronos Lip Contour Cream, Chronos Intense Hydration Mask, Mamãe e Bebê Passion Flower Oil, Diversa Kohl Eye Liner, Ekos Priprioca Body Oil Elixir, Ekos Breu Branco, Perfume do Brasil.

Comments: Although founded in 1969 and with operations in seven Latin American countries and France, some might say Natura’s been somewhat of a sleeper in the beauty industry, but with 2007 sales surpassing $2.4 billion, up 10.6% over 2006, that thought is certainly old hat. Add in the company’s timely dual causes that are key to its foundation—sustainability both through social consciousness and ethics and natural ingredients (many of which are locally sourced)—and you can see why it’s been rapidly propelled into the limelight.

Brazil’s eco-friendly Natura plans to enter the U.S. market in 2009. Jomo Thermomolding, also with headquarters in Brazil, provided the recycled packaging shown here.

In 1974, Natura adopted a direct sales approach similar to Avon, and there’s been no stopping it. Natura has doubled in size over the past four years, expanded into additional Latin American markets (most recently Venezuela and Colombia), invested in infrastructure and R&D—and gone public (in 2004). In 2007, the EBITDA was $391 million, 7.3% higher than the previous year, with a margin of 22.8%. Net income totaled $258 million, generating an initial return on net equity of 72%, one of the highest profitability levels on the Brazilian market. The number of consultants who make up Natura’s sales force grew by over 16%. Natura now has 5,900 employees and more than 718,000 consultants.

In 2007, Natura produced more than 225 million items sold to 50 million consumers in over 5,000 Brazilian cities. The company opened its first retail store in a tony boutique in the Saint Germain area of Paris, an effort to build the brand in a sophisticated market, testing retail rather than door-to-door. Next in the global expansion plan: the U.S.

Natura, often lauded as one of the most admired companies in Brazil, aims to grow at an accelerated pace in the Latin American countries and generate revenues of $500 million in the region by 2012, or about a 4.5% growth in its market share. To help reach these goals, the company has reformulated its corporate architecture and created three autonomous management groups with their own teams that will conduct business operations in Brazil, Latin America and the new markets. A team of senior executives will be dedicated full-time to preparing for Natura’s entry into the U. S. market in 2009.