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Brazilian beauty conglomerate, Natura & Co, owner of Avon, Aesop and The Body Shop, reported its first quarter losses narrowed to 156.6 million reais ($9.5 million), compared to a loss of 820.8 million ($154.6 million) over the same period a year ago, as online sales jumped.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose 470.7 percent, to 829.1 million reais ($156.16 million) and recurring net income was 60.2 million reais ($11.34 million), excluding expenses incurred by the integration of Avon (which Natura completed its acquisition of in 2020).
Natura’s net revenues also grew by 25.8 percent from a year earlier, to 9.5 billion reais ($1.79 billion), boosted by higher online sales across all brands.
“The Body Shop continued to offset store closures with very strong growth in online … and Aesop had another spectacular quarter of growth,” Natura & Co CEO, Roberto Marques, said in a statement.
Natura & Co is also likely to be a potential beneficiary of a recent regulatory change in China that exempts most imported beauty products from mandatory animal testing. It has refrained from operating its brands in the mainland market until now due to its cruelty-free stance, but has begun readying brands such as Aesop for a big China push in 2021.