SAO PAULO (Reuters) -Brazilian cosmetic maker Natura swung to a recurring net loss in the third quarter on Monday, hit by slowing consumer demand in its local market, as well as challenges in the firm’s brand integration in Latin America. The company’s net loss came in at 119 million reais ($22.02 million) in the July-September […]
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Natura swings to Q3 loss on weaker Brazil demand, integration challenges
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SAO PAULO (Reuters) -Brazilian cosmetic maker Natura swung to a recurring net loss in the third quarter on Monday, hit by slowing consumer demand in its local market, as well as challenges in the firm’s brand integration in Latin America.
The company’s net loss came in at 119 million reais ($22.02 million) in the July-September quarter, reversing a 301 million real net profit recorded in the same period a year earlier.
It also reported recurring earnings before interest, taxes, depreciation and amortization (EBITDA) at 577 million reais in the period, a decline of 33.7% year-on-year.
According to Natura’s financial statement, the firm faced revenue challenges throughout its operations, with net revenue reaching 5.2 billion reais in the third quarter, down 13.1% from a year earlier.
In Brazil, Natura’s largest market, where economic growth has slowed amid the highest interest rates in nearly two decades, net revenue fell 3.7% year-on-year to 3.2 billion reais.
“The slowdown in the beauty market in Brazil, first identified in June 2025 and still ongoing, has led to the growth of the Natura brand stabilizing after a period of low double-digit expansion,” the company added.
In its Spanish-speaking Latin American markets, Natura cited integration challenges following the July merger of its Natura and Avon brands in Argentina. Net revenue in these markets fell 3.9% year-on-year to around 2 billion reais.
($1 = 5.4039 reais)
(Reporting by Fernando Cardoso; Editing by Brendan O’Boyle and Natalia Siniawski)