SAO PAULO, March 12 (Reuters) - Brazilian cosmetics

maker Natura&Co posted a net loss for the fourth quarter of 2.7

billion reais ($542.27 million), compared with a loss of 890

million reais in the same period a year earlier.

The company said its bottom line suffered a hit of 1 billion

reais from a discontinued business that it sold recently, in

addition to a 664 million-reais impairment related to Avon.

Natura has been shedding global assets, including the sale

of the Aesop and The Body Shop brands, as it turned its focus to

Latin America, where it has been integrating the Avon and Natura

brands.

The cosmetic group's net revenue fell 17.4% to 6.61 billion

reais in the quarter.

"On the operational and financial side, we prioritize

profitability and cash conversion rather than revenue growth,"

Natura CEO Fabio Barbosa said in a statement accompanying the

results released late on Monday.

Adjusted earnings before interest, taxes, depreciation and

amortization (EBITDA) stood at 670.1 million reais, up 31% from

the same quarter in the previous year, while its adjusted EBITDA

margin grew by 3.7 percentage points to 10.1%.

Analysts were expecting an adjusted EBITDA of 722.9 million

reais.

Natura said last month it was looking at splitting its

Avon brand outside Latin America, which could spawn a new listed

firm managing the business outside the region.

Avon's U.S. business was never owned by Natura.

"Our balance sheet was strengthened as we used the proceeds

from the sale of Aesop to pay off more than 7.6 billion reais in

debts, ending the year with a strong net cash position of 1.7

billion reais," said Barbosa.

($1 = 4.9791 reais)