Natura &Co reports sales growth of 26%, driven by strong digital sales, with EBITDA increasing over 400%

Successful issue of a US$1 billion sustainability-linked bond; Avon synergies raised in April to between US$350 million and US$450 million 

SÃO PAULO, May 13, 2021 /PRNewswire/ -- Natura &Co (NYSE – NTCO; B3 – NTCO3) recorded another quarter of double-digit revenue growth in the first quarter, again outperforming the global Cosmetics, Fragrance, and Toiletries market thanks to a strong increase in digital sales, while EBITDA was up more than four-fold.

Consolidated net revenue in Q1 stood at R$9.5 billion, up 25.8% in Brazilian Reais and 8.1% at constant currency, driven by sales growth in BRL at all four of the Group's iconic brands. Reported EBITDA grew by 470.7% to R$829.1 million, with margin up 690 basis points to 8.8%, and adjusted EBITDA, which excludes transformation costs and Avon-related acquisition effects, rose 68.5% to R$963.2 million, with margin of 10.2%, up 260 basis points.

This strong Q1 performance was powered by further growth in digital social selling and e-commerce across all brands. Total group online sales were up a very strong 166%. At the Natura brand, digital sales were up by 253% and Avon globally also recorded triple-digit growth of 132%. Aesop's total online sales grew 102% in the quarter, representing  29% of revenue. The Body Shop continued its pivot to e-commerce and direct selling channels, up respectively by 119% and 251%, to jointly represent 51% of total sales. Relationship selling using apps advanced vs. Q1-20, with Avon e-brochure sales up by 175% globally. Considering Natura brand in Latin America, the average number of consultants sharing content increased by more than 350%, and orders through the 1.3 million+ consultant online stores in the region grew by 80% vs. Q1-20.

Natura &Co also made further advances in its integration of Avon, with a new commercial model being rolled out. At its recent Investor Day in April, Natura &Co raised its synergies target for the Avon integration by US$50 million to between US$350 million and US$450 million by 2024.

Earlier this month, Natura &Co also successfully completed a US$1 billion bond issue linked to sustainability goals. The issue was carried out by its subsidiary, Natura Cosméticos SA ("Natura"), with Natura & Co Holding S.A. acting as the guarantor. The transaction commits Natura to meet two material environmental performance indicators by end-2026: i) reduction of its relative greenhouse gas emissions intensity by another 13% across scopes 1, 2 and 3, and ii) reaching 25% of post-consumer recycled plastic in packaging. These goals are aligned with the Group's "Commitment to Life", its Sustainability Vision for 2030, and support Natura &Co's efforts to address the global climate crisis and move towards full circularity.