Fiscal Year registered positive net cash of BRL 1.7 billion
Net income reached BRL 3.0 billion, of which BRL 979 million will be distributed as dividends
SÃO PAULO, March 12, 2024 /PRNewswire/ — Natura &Co’s (B3:NTCO3) 2023 financial results, released today, reflect the benefits of a strategy defined and implemented 18 months ago, to prioritize profitability and cash conversion versus revenue growth, integrate the Natura and Avon brands in Latin America, and divest non-core assets to deleverage and simplify its corporate structure.
Natura &Co’s 2023 consolidated net revenue reached BRL 26.7 billion in the year, up 3.5% vs 2022 in constant currency (CC) and down 8.5% year-on-year in Brazilian Reais (BRL). Natura brand posted strong growth in Latin America, led by Brazil with revenues up 8.6% YoY, partially offset by expected reductions in Avon Latam with the rollout of Wave 2 in the region, and in Avon International related to decrease in consultants and the portfolio optimization strategy. At the same time, both brands saw improvements in the expense structure while noting the transformational savings recorded at Avon International.
Improved profitability is principally attributed to the expansion of gross margin that reached 63.8% in 2023, up 410 bps vs. 2022, driven by effective pricing strategies, product mix enhancements and portfolio optimization, coupled with reductions in general and administrative expenses. Adjusted EBITDA reached BRL 2,7 billion, and adjusted EBITDA margin expanded 310 bps YoY, showing growth versus prior year in every quarter. These results reinforced the consistent execution of the financial and operational strategy throughout the year, even taking into consideration the Argentinean hyperinflation accounting impacts in the fourth quarter.
Net income totaled BRL 3.0 billion in 2023, an improvement from a net loss of BRL 2.8 billion in 2022, boosted by the proceeds from the USD 2.6 billion sale of Aesop concluded in August. …