November 28, 2023

Natura stock drops 17%, after the balance sheet shows a drop in demand

temper nature
Natura is down more than 17% on Friday (12) (Photo: Money Times/Gustavo Kahil)

a temper nature (NTCO3) among the largest waterfalls in Ibovespa on Friday (12), with luisa magazine. At about 12:45 pm, the company’s shares fell 17.53%, at 33.01 Brazilian reais, in response to the Balance sheet for the third quarter.

In disclosing the results, in addition to declining profits by 28.5%, totaling R$272.9 million, Natura scored 620 basis points in Ebitda’s margin, registering 8.6%, compared to the same period last year.

The company also announced a new share buyback program worth up to 1.5 billion Omani riyals and said it is in the process of evaluating Transferring its main listing from B3 to the New York Stock Exchange, keeping BDR records listed in Brazil.

effect of two results

according to Actual BTGNatura’s results were negatively affected by lower demand in the markets in which it operates, especially in Brazil, and for lower-priced products and brands. a ticket, like Avon.

The bank claims that the negative reading after the quarterly results leads to a more conservative view of the company’s shares, due to a “more difficult outlook,” regarding demand and margin, in Natura’s core markets.

However, highlighting a better capital structure – after two increases last year – continued digitization of sales, opportunities for cross-selling with Avon and rapid acquisition of synergies, BTG is a positive in the case for Natura’s investment.

Depending on the scenario, and despite the turmoil it is facing, BTG reiterates its recommendation to buy Natura shares, with a target price of R$70, with a potential increase of nearly 75% based on the recent close (11).