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Natura &Co Reports 9-10% Decline in Preliminary Second-Quarter Revenue
Summary
Brazilian cosmetics company Natura &Co has announced a preliminary year-on-year net revenue decrease of 9% to 10% for the second quarter. Despite the sales drop, the company anticipates an improved profit margin compared to the first quarter.
SAO PAULO – Brazilian cosmetics manufacturer Natura &Co reported on Wednesday its preliminary financial results for the second quarter, indicating a consolidated net revenue between 5.1 billion and 5.2 billion reais (approximately $1.01 billion). This figure represents a 9% to 10% decline compared to the same period in the previous year.
Despite the decrease in revenue, the company projects a positive outlook for its profitability. Natura stated that it expects its reported EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin to show an increase from the first quarter of the year.
The anticipated improvement in the profit margin is attributed to several factors. According to the company's statement, the gains are a result of lower severance expenses and increased efficiencies derived from a new operating model.
AdThese figures are preliminary. Natura &Co announced that it will release its complete and detailed second-quarter financial results on August 10.