SAO PAULO, Nov 10 (Reuters) - Brazilian cosmetic maker
Natura swung to a recurring net loss in the third
quarter on Monday, hit by slowing consumer demand in its local
market, as well as challenges in the firm's brand integration in
Latin America.
The company's net loss came in at 119 million reais
($22.02 million) in the July-September quarter, reversing a 301
million real net profit recorded in the same period a year
earlier.
It also reported recurring earnings before interest, taxes,
depreciation and amortization (EBITDA) at 577 million reais in
the period, a decline of 33.7% year-on-year.
According to Natura's financial statement, the firm faced
revenue challenges throughout its operations, with net revenue
reaching 5.2 billion reais in the third quarter, down 13.1% from
a year earlier.
In Brazil, Natura's largest market, where economic
growth has slowed amid the highest interest rates in nearly two
decades, net revenue fell 3.7% year-on-year to 3.2 billion
reais.
"The slowdown in the beauty market in Brazil, first
identified in June 2025 and still ongoing, has led to the growth
of the Natura brand stabilizing after a period of low
double-digit expansion," the company added.
In its Spanish-speaking Latin American markets, Natura
cited integration challenges following the July merger of its
Natura and Avon brands in Argentina. Net revenue in these
markets fell 3.9% year-on-year to around 2 billion reais.
($1 = 5.4039 reais)