Natura completes corporate streamlining delivering strong profitability growth and net income of nearly R$ 1 billion

• Divestments of Avon International and Avon Russia mark the conclusion of the corporate streamlining process
• Completion of the Natura–Avon brand unification (Wave 2) in Mexico and Argentina brings transformation costs to a close, coming in below 2024 levels
• Annual recurring EBITDA margin reaches 14.6% (+130 bps increase), driven by the 16.1% growth in 4Q-25 in Latin America
• Solid cash generation, despite revenue challenges, leads to leverage within the optimal range by the end of 2025
• Continuing operations delivering net income of nearly R$ 1 billion

SÃO PAULO, March 16, 2026 /PRNewswire/ -- Natura (B3: NATU3) today presented its fourth-quarter and full-year 2025 results. In a year marked by the final steps of its corporate streamlining process, the Company sharpened its focus on Latin America and achieved strong profitability growth. The recurring EBITDA margin in the region reached 16.1% in 4Q-25. For the full year 2025, recurring profitability was 14.6%, an increase of 130 basis points compared to the previous year.

The completion of the sales of Avon International and Avon Russia marked the final milestone in Natura's corporate streamlining and capital structure reorganization. The Company ended the year with financial leverage at 1.31x, within the optimal capital structure range.

With the integration of Mexico and Argentina, the operational unification of the Natura and Avon brands is now completed. As a result, 2025 marks the end of transformation costs, which fell below 2024 levels.

Net revenue totaled R$ 6.2 billion in 4Q-25. Despite a challenging macroeconomic environment in Brazil — marked by weaker consumption and its impact on Beauty Consultant activity — and temporary instabilities from the recent Natura–Avon integration in Mexico and Argentina, profitability growth was driven by efficiencies in general and administrative expenses and disciplined cost management.

In Brazil, advances in the digital strategy drove digital channel revenue up 24.5% in the quarter. Non-relationship selling channels accounted for 22.5% of revenue in the period, up by 4.5 percentage points year-on-year. Natura's fintech platform, Emana Pay, also accelerated, with credit penetration reaching 41% of sales by year-end.

In Hispanic America, the completion of the brands integration boosted the recurring EBITDA margin to 7.5% in Q4-25, an expansion of +810 bps.

For the year, the Company's net income totaled R$ +974 million, excluding the non-recurring, non-cash provision of R$ -434 million related to accounts receivable from the sale of The Body Shop and other divestment expenses. These results underscore the strength of its core business model and potential for future results.

"We have delivered on our commitment to expanding annual profitability, marking the fourth consecutive year of margin improvement. We enter 2026 with a simpler and more agile structure, ready for a new cycle of prosperity and innovation. We remain focused on expanding and consolidating our leadership in Latin America, growing the Natura brand, and relaunching Avon — which kicked off this March in Brazil and Mexico," said João Paulo Ferreira, CEO.

Regeneration
In line with our climate transition plan, we reduced absolute carbon emissions by 10.2% in 2025. This was driven by initiatives such as the adoption of biomethane at our Cajamar facility, which generated productivity gains of over 400% in the refueling cycle and is expected to prevent approximately 1,300 tons of carbon emissions.

On circularity, Natura achieved 29% post-consumer recycled content in packaging, exceeding its 25% target a year ahead of schedule. The Company also maintained its 'A' rating in the CDP Climate Change assessment and was named the most sustainable beauty company in Latin America by the S&P Global Sustainability Yearbook 2026.

Join Natura's Q4 2025 earnings conference call.

Tuesday, March 17, 2026

8:00 a.m. | New York | 9:00 a.m. | Brasília | 12:00 p.m. | London

Click here to access the webcast.