March 25, 2023

Natura (NTCO3) Reverses Profits, Losses R$890.4 Million In Q4 2022 – Money Times

Natura lost R$2.86 billion in 2022 (Photo: Reuters/Amanda Perubelli)

a Natura and co (NTCO3) The company said in a report released on Monday (13), that a net loss attributable to controlling shareholders amounted to R$890.4 million in the last quarter of 2022.

The result is a reflection of a profit of R$695.5 million reported in the same period last year, the document explains.

according to retailerThe negative result was primarily driven by lower Ebitda (earnings before interest, taxes, depreciation, and amortization), and was impacted by R$383 million of non-cash impairment, as well as higher net financial expenses and losses from discontinued operations.

The result was worse than expected, with the market consensus expecting a net profit of BRL 326 million, according to data compiled by Bloomberg.

a company makeup It ended the year with a loss of R$2.86 billion, compared to a profit of R$1.04 billion in 2021.

Adjusted Ebitda ended the fourth quarter down 29% in the year-over-year comparison, to R$1.09 billion, with adjusted Ebitda margin declining 280 basis points and coming in at 10.5%. According to Natura, there was slight marginal pressure on the Body Shop, mainly due to downsizing and channel mixing; Margin pressure on operations Natura & Associates LATAM that it Avon Internationalaffected by the staging of expenditures.

In the 12 months backlog of 2022, the Company’s adjusted Ebitda contracted by 23.7% with respect to 2021, to R$3.15 billion, a margin of 8.7%.

Consolidated net revenue totaled approximately R$10.4 billion in the last three months of the year, which is 10.8% less than in the fourth quarter of 2021. A major impact was from the operations of Avon Internacional (-23.8% yoy) and The Body Shop (-23.8% yoy) -20.6% YoY).

According to Natura, with respect to Avon Internacional’s operations, identified issues in the supply chain resulted in an estimated two percentage point adverse impact on total sales.

a Aesop It recorded R$ 879.6 million, which is 2.1% less in the annual comparison. Natura reported that all regions reported double-digit annual growth, with retail and wholesale showing “strong growth,” partially offset by weaker performance in E-Commerce.

The Natura & Co Latam business showed a 3.2% decrease in net revenue to R$5.94 billion.

In 2022, the company achieved a combined net revenue of R$36.3 billion, down year-on-year by 9.5%.