Natura &Co reports strong sales growth of 24% and net profit up 200%, continuing to outperform global CFT market in Q4
Digital social selling and e-commerce drive sales growth; Avon synergies ahead of plan and significant deleveraging in the quarter; Natura &Co becomes the world's biggest B-Corp
SÃO PAULO, March 4, 2021 /PRNewswire/ -- Natura &Co (B3 – NTCO3; NYSE – NTCO) recorded another quarter of revenue and profit growth in the fourth quarter, again significantly outperforming the global Cosmetics, Fragrance, and Toiletries market, driven by a continued ramp-up in digital sales across all brands that helped offset the continued impact of the COVID-19 pandemic.
Consolidated net revenue in Q4 stood at R$12 billion, up 24.3% in Brazilian Reais and 6.4% at constant currency, driven by sales growth in BRL by all four of the Group's iconic brands. Adjusted EBITDA was up by 12.3% to R$1.5 billion, with margin of 12.4%. Net income rose 200.7% to R$177.4 million.
Natura &Co's strong Q4 performance was powered by further growth in digital social selling and e-commerce, with total group digital sales up 79% and all brands recording their highest-ever e-commerce sales. Aesop's total online sales grew 190% in the quarter and reached almost 30% of its revenue, doubling over the previous year, and The Body Shop rapidly pivoted to online and At-Home channels, which combined grew more than 130%, representing 40% of total sales. Social selling continues to grow, with e-brochure revenue up nearly 90% vs. Q4-19 at Avon globally. At Natura in Latin America, the number of consultants sharing content grew by more than 300% since Q1 and the number of orders through the 1 million+ consultant online stores in the region increased by 60% vs. Q4-19.
After unveiling its 2030 sustainability vision, Commitment to Life, Natura &Co reached a new milestone by becoming a B-Corp, becoming the world's biggest certified company. It also achieved important targets in sustainability in 2020. The Natura brand avoided 32% in emissions, which is equivalent to 162,000 tons of CO₂ emissions of greenhouse gas and all four brands launched their plans to become Net Zero by 2030 on Scopes 1, 2 and 3. Natura &Co invested nearly R$500 million in 2020 in key causes (such as fighting COVID-19, support to women, sourcing and benefit sharing with communities, among others). Finally, Natura &Co replaced 2,489 tons of virgin plastic for recycled alternatives, equivalent to more than 120 million PET bottles.