Natura swings to profit in Q2; Avon International ‘held for sale’

Brazilian giant Natura returns to profit as major shake-up looms

What’s Happening?

Natura, Brazil’s leading cosmetics company, has reported a surprising net profit in Q2, marking a shift back to profitability. Meanwhile, the company has announced plans to divest its international Avon division, signaling a significant strategic move. This pivot comes as Natura aims to streamline its operations and focus on core markets, triggering both optimism and uncertainty within the beauty industry.

Where Is It Happening?

This financial turnaround and restructuring are centered in Brazil, Natura’s home and strongest market, with broader implications for its international presence, particularly concerning Avon’s operations.

When Did It Take Place?

The earnings report was released on Monday, August 11, 2024, detailing the company’s performance during the second quarter of the fiscal year.

How Is It Unfolding?

– Natura has shifted back to profitability after a previous quarter of losses.
– The company is actively seeking buyers for its Avon International business unit.
– Financial strategies now emphasize core markets to drive growth.
– Analysts are closely monitoring how the divestment will impact Natura’s global footprint.

Quick Breakdown

– Q2 showed a net profit, reversing prior financial losses.
– Avon International is being held for sale as part of Natutatas’s strategic realignment.
– Focus is shifting to strengthening Sistema B certified sustainability goals.
– Market reactions include investor caution amid restructuring.

Key Takeaways

Natura’s return to profitability amid its decision to sell off Avon International highlights a bold strategic pivot. The company is doubling down on its primary markets in Latin America, where its revenue and brand loyalty are strongest. While the divestment may lead to short-term volatility, the move could solidify Natura’s long-term stability and sustainability goals. The restructuring also signals a shift in the global beauty industry, where companies are increasingly prioritizing core competencies over diverse portfolios.

Sales of Avon International will either rehabilitate Natura’s financial dispositoin oder accelerate its decline—there are no middle grounds.
– Ana Costa, Beauty Industry Analyst

Final Thought

Natura’s latest financial results underscore resilience and adaptability in an ever-evolving market. By refocusing efforts, the company aims to restore investor confidence. While the fate of Avon remains uncertain, Natura’s commitment to its core roots could redefine its path to sustainable success.

Source & Credit: https://www.reuters.com/world/americas/natura-swings-profit-q2-avon-international-held-sale-2025-08-11/