Natura & Co. is concentrating on the Mexican market in its push to spice up gross sales as chief govt officer João Paulo Ferreira works to reinvigorate the cosmetics firm after disappointing earnings on the finish of final 12 months.
“We are going to develop disproportionately in Mexico,” Ferreira stated in an interview. Natura plans to increase its presence within the nation from its present footprint of 16 shops and stands, in addition to its on-line operation and its community of greater than 500,000 magnificence consultants that supply its merchandise within the nation. Ferreira declined to offer any targets for retailer openings.
Natura is providing its complete product line, from perfumery to hair merchandise and make-up, in Mexico however presently has only a 5.4 p.c share of the market. That trails the 11.5 p.c share that French rival L’Oréal holds in Latin America’s second-largest economic system.
Whereas the Brazilian firm plans to speed up its funding in Mexico via natural progress, the CEO didn’t rule out an acquisition sooner or later.
Ferreira, who led the Latin America division earlier than being named to supervise your entire group in March, stated his aim is to “seize worth from our personal enterprise” whereas laying the groundwork to renew dividend funds.
Natura shares plunged 30 p.c on March 14 after fourth-quarter outcomes fell wanting expectations, sparking investor criticism. The inventory has pared a few of these losses to commerce at about $10.50 a share, down 17.7 p.c thus far this 12 months. Ferreira stated he’s hoping to revive market confidence with a clearer technique and monetary self-discipline.
“The Latin America enterprise is a money generator and we wish to reduce money consumption,” the CEO stated in New York this month. “We don’t have short-term debt — and it’s comparatively low-cost — so within the close to future we are able to count on dividends once more.”
Ferreira spent 48 hours within the US monetary capital for conferences with worldwide buyers, saying his message to them was that Natura is “again on observe” beneath his management. He additionally detected rising curiosity amongst international cash managers about its dwelling market. “They have been eager to speak about Brazil — greater than I anticipated,” he stated.
Amazon & Avon
Natura is legendary for utilizing Amazon rainforest elements in its magnificence merchandise and is planning to announce a biodiversity analysis facility within the area through the COP30 summit in November. The thirtieth version of the marquee United Nation local weather convention will probably be held this 12 months within the northern Brazilian metropolis of Belem.
Ferreira stated Natura isn’t on the hunt for offers within the quick time period, however could analyze acquisition alternatives after its Avon Worldwide unit completes the chapter safety course of it initiated final August. Avon “shouldn’t burn as a lot money because it burned final 12 months, together with the restructuring prices,” Ferreira stated.
Requested a couple of potential purchaser for Avon, he stated Natura is contemplating all choices, together with the sale of property in elements or in a block.
By Rachel Gamarski
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