Natura &Co reports strong sales growth of 24% and net profit up 200%, continuing to outperform global CFT market in Q4 - Seite 2
A key highlight of the quarter was the strengthening of Natura &Co's capital structure with the successful completion in October of a US$1 billion capital raise. This allowed the Group to significantly deleverage its balance sheet, and it ends 2020 with a net debt to EBITDA ratio of 0.97 times.
Natura &Co also made further advances in its integration of Avon, one year after it became part of the Group's family of brands. Avon's transformation and brand rejuvenation continues, with a new commercial model being rolled out. Synergies from the Avon integration reached US$25.5 million in Q4 and stood at US$73.3 million in the full year, ahead of our estimates.
Roberto Marques, Executive Chairman and Group CEO of Natura &Co, declared: "In a year of unprecedented challenges, Natura &Co associates and our network across all of our businesses showed care and adaptability in the face of a global pandemic, demonstrating both our purpose-driven approach to business and the strength of our omnichannel, multi-brand model. Our performance in the fourth quarter attests to that, with strong growth in sales and profits. By pivoting rapidly to digital social selling and e-commerce when stores were closed by lockdowns, we were able to outperform the CFT market both globally and in Brazil."
Natura &Co Latam's net revenue increased by 20.5% in BRL in Q4. The Natura brand's net revenue rose by 24.7% in BRL, with strong growth both in Brazil (+16.2%), and Hispanic Latam (+44.5%). The Avon brand's net revenue increased by 16.2% in BRL, with growth in Brazil for the second consecutive quarter (+4.9% in BRL), driven by higher activity and productivity, and a resumption of growth in Hispanic Latam (+23% in BRL). Adjusted EBITDA for Natura &Co Latam was R$774.1 million, up 33.6%, and adjusted EBITDA margin was 12.2% (+120 bps).
Avon International, posted Q4 net revenue growth of 12.1% in BRL, with a particularly strong performance in the UK, where it recorded sales growth of 3% in constant currency and gained market share for the third consecutive quarter. Adjusted EBITDA was R$118.9 million, with 4.1% margin (-560 bps), reflecting investments in brand, digital and commercial areas to accelerate future growth.
The Body Shop posted another strong quarter, with net revenue increasing 48.4% in BRL. Consumers continued to shift to e-commerce and At-Home (direct sales), with growth of 72% and 206% at constant currency, respectively, significantly offsetting the impact of store closures due to the pandemic, notably in Europe. Adjusted EBITDA in Q4 was R$492.8 million, with adjusted margin of 23.7% (-290 bps).