Natura's corporate simplification progresses, while profitability was impacted by macro headwinds and integration in Latin America

• In 3Q25, the company announced the agreement to sell Avon International, expected to close in the first quarter of 2026, and completed the sale of Avon operations in Central America and the Dominican Republic
• Operating results in Latin America reflect a slowdown in consumption in Brazil and temporary effects from the integration with Avon in Mexico and Argentina
• The Company reiterates its commitment to improving profitability in full year 2025 compared to 2024

SÃO PAULO, Nov. 10, 2025 /PRNewswire/ -- Natura (B3: NATU3) reported its third quarter 2025 results today. Consolidated net revenue was R$ 5.194 billion, down -3.8% year-on-year in constant currency. The results reflect the slowdown in the beauty market in Brazil, along with temporary and expected operational impacts from the integration with Avon in Argentina and Mexico.

The Mexican operations showed a recovery in performance throughout 3Q25. In Brazil, the Natura brand ended the quarter with revenues stable year-over-year, while in Hispanic America, it posted growth across all countries except Argentina, where stability is expected from early next year.

The revenue decline, driven by consumption constraints in Brazil and temporary operational challenges in Argentina and Mexico — three markets that together represent around 85% of the business — resulted in lower expense dilution. As a result, the recurring EBITDA margin in Latin America was 11.7% (-360 bps). Gross margin remained healthy across the region.

"We are confident that profitability will improve in the next quarter and remain committed to expanding our EBITDA margin for the full year 2025. Mexico stabilized toward the end of the quarter, and Argentina is already showing signs of recovery. At the same time, the efficiency and cost containment measures already underway will further support profitability improvements. We remain focused on expanding our leadership in Latin America, including Brazil, while accelerating growth and profitability in Hispanic markets, particularly Mexico," stated João Paulo Ferreira, CEO.

Natura continues to make consistent progress in its omnichannel strategy. Both digital and retail channels sustained accelerated growth, reinforcing their role as important drivers of revenue. Retail expansion remained robust, with 89 new stores opened in Brazil and 32 in Hispanic America in the period.

The penetration of Emana Pay, Natura's fintech, reached 36% of the consultant base, up by 50% when compared to the same period last year. The financial solutions ecosystem  enhances credit access and serves as an important lever for channel productivity.

Corporate simplification nearing completion
In 3Q25, Natura completed its integration with Avon across Latin America. The corporate simplification process also advanced with the completion of the sale of Avon operations in Central America and the Dominican Republic. In addition, the Company announced an agreement to sell Avon International, excluding Russia, with closing expected in 1Q26, and continues to make progress on strategic alternatives for the Russian operation. The Avon brand in Latin America remains under Natura's management.

With the agreement to sell Avon International's assets, this quarter's balance sheet reflected a non-recurring, non-cash write-off of R$ R$ 1.7 billion, with no impact on operations.

Regeneration
Natura also announced that, starting in fiscal year 2025, it will adopt the new IFRS S1 and IFRS S2 standards, which enhance transparency and comparability in sustainability- and climate-related financial disclosures. With this decision, the Company is among the first in Brazil to anticipate the mandatory requirement. This month, Natura is participating in COP-30 in Belém, seeking to raise awareness and scale climate and socio-environmental solutions in the Amazon — a region where it has operated for more than 25 years.

Join Natura's Q3 2025 earnings conference call.

Tuesday, November 11, 2025

07:00 a.m. | New York | 09:00 a.m. | Brasília | 12:00 p.m. | London

Link: https://tenmeetings.com.br/ten-events/#/webinar?evento=ConferenciadeResultados3T25-NATURA_163