Natura's net profit from continuing operations stood at R$35 million in the three months ending late June 2026, down 92% from the R$446 million recorded in the same period the previous year. Converted into dollars, this quarterly result is equivalent to 6.85 million dollars, according to The Business of Fashion.
The group's revenue stood at R$5.2 billion in the second quarter. Performance in Amérique hispanique was not enough to offset the decline recorded in Brésil, the group's largest market.
A Brésil under pressure, a resilient Amérique hispanique
According to Natura, second-quarter 2026 results revealed operational challenges in Brésil greater than expected, amplified by the macroeconomic environment. The decline was mainly caused by costs linked to settlements, currency movements and severance costs linked to the group's new operating model. The digital and retail channels also came under pressure linked to the rollout of a new harmonised pricing policy and common commercial rules, as well as the transition of all franchise contracts to a new model.
The group's statement specifies that product unavailability, combined with a difficult macroeconomic environment, led to a decline in volumes in the relationship selling channel and weighed on the performance of Natura and Avon. Despite this, Natura states that the efficiencies of the new operating model and a healthy gross margin kept the region's profitability in a mid-to-high single-digit percentage range, excluding the temporary effect of indirect tax changes in the state of São Paulo.
Conversely, revenue in hispanic markets remained broadly stable year-on-year, but rose 7.2% at constant exchange rates, driven by growth of 12.3% for the Natura brand and 4.7% for the Avon brand. This performance was supported by steady progress in Mexique and a continued recovery in Argentine. Natura states that performance improved both in revenue and profitability in hispanic markets.
A setback presented as temporary
The group specifies that, backed by a resilient business model, it generated positive cash flow in the second quarter of 2026 and slightly reduced its leverage over the quarter.
PDG João Paulo Ferreira explains that the quarter's operational challenges stemmed from adjustments needed to prepare the company's future growth, such as investments in digital and logistics capabilities, and the realignment between direct selling, online and franchise, although product shortages were greater than initially anticipated. He states that Natura has a business model built on strong brands, distributed through a unique model in high-potential markets, and supported by a team that is "engagée, innovante et tournée vers l'exécution."
Natura plans to rebalance its supply chain in the second half of the year, to put in place commercial incentives for high-turnover categories and to accelerate store openings, with the aim of returning to growth after what it describes as a temporary setback.
