São Paulo — Natura (B3: NATU3) closed the second quarter of 2025 with R$445 million in net profit from its Latin America business. That’s the number without Avon’s international operations, which are now being prepared for sale. Include those and the total profit comes to R$195 million.
The company’s message is clear: the focus is here, in Latin America. Corporate simplification is moving fast, and the “Wave 2” integration of Natura and Avon brands is almost done — end of this year, they say.
Net revenue hit R$5.7 billion in Q2, up 5.5% in constant currency (2% if you take out Argentina). Growth came mostly from Natura Brazil, which jumped 10.3%, and from Hispanic markets, up 17.8%. Avon Brazil was down 12.9%, still feeling the early pains of integration. Mexico’s integration wrapped in May. Argentina’s happened in July.
Margins hold up
Recurring EBITDA margin in Latin America came in at 14.7%, up slightly from last year. Gross margin improved by 80 basis points in countries where the two brands already work more closely together. Quarter-on-quarter, though, the margin slipped 100 basis points — mostly due to Wave 2 rollout costs in Mexico and Argentina. Natura expects those costs to fade by year-end.
Cash flow was another bright spot. Latin America generated R$408 million in the first half of 2025, even though this part of the year usually eats cash.
Shaping the portfolio
Avon International and Avon Central America are now officially listed as “held for sale” on the books. Natura has already told investors it’s looking at options — a spin-off or straight sale — and expects to close a deal within 12 months.
Beyond the numbers
The company also picked up an “A” rating from CDP for Climate and Supplier Engagement. That’s a big tick for investors tracking ESG performance. And in July, Natura laid out “Vision 2050” — an ambitious plan to become a fully regenerative business in 25 years.
CEO João Paulo Ferreira said the business is holding steady despite slower consumer spending. “Natura is outperforming the market in Brazil. Even with Avon’s challenges, we’re confident in growing profitability,” he said.
With brand integration nearly complete and divestments moving forward, Natura is cutting complexity and tightening its focus. The second half of 2025 will show if the strategy pays off.