THE WHAT? Natura expects second-quarter consolidated net revenue to fall between 9% and 10% year-on-year, citing weaker consumer demand and operational challenges in its Brazilian market.
THE DETAILS The Brazilian beauty company forecast second-quarter net revenue of between BRL5.1 billion and BRL5.2 billion. Natura said subdued consumer spending and internal operational issues in Brazil had a greater impact than anticipated, offsetting continued constant-currency growth across its Hispanic markets. Despite the expected sales decline, the company anticipates an improvement in EBITDA margin compared with the first quarter, supported by lower severance costs and efficiencies from its new operating model. Natura is also implementing measures to restore growth in Brazil, including supply chain improvements, sales force changes, expanded digital sales channels and accelerating franchise store openings.
THE WHY? The company is seeking to improve operational performance and return to growth in its largest market while maintaining profitability through cost efficiencies and strategic investments.
Source: Reuters
