- Revenue of BRL 5.2 billion reflects pressure in Brazil caused by operational challenges, temporary tax effects, and the macroeconomic environment
- Hispanic America posts accelerated growth of +7.2% and increased profitability
- Consolidated EBITDA of BRL 620 million, with a 12% margin, representing a sequential improvement of +470 bps
- Positive free cash flow to firm of BRL 342 million and a slight reduction in leverage, sustaining the business's financial health despite the operational challenges
- The Company has been implementing logistical and commercial adjustments across all channels to boost revenue in Brazil in the second half of the year
- Strategic investments in marketing, R&D, and digital innovation will be preserved
SÃO PAULO, Aug. 10, 2026 /PRNewswire/ -- Natura (B3: NATU3) announced on Monday (10) its results for the second quarter of 2026. During the period, revenue totaled BRL 5.2 billion, with performance in Brazil impacted by product unavailability, temporary tax mismatches, and a subdued consumption environment in the country.
In contrast, Hispanic markets posted accelerated growth of +7.2% in constant currency, driven by consistent progress in Mexico and a continued recovery in Argentina. The Natura brand grew by +12.3% and Avon by +4.7% in the region, with increase in both revenue and profitability, which benefited from the efficiencies of the Company's new operating model.
The EBITDA margin in Hispanic markets reached 7.6%, up +220 basis points (bps) year over year. In Brazil, the margin stood at 16.4%, pressured by a temporary tax effect in the state of São Paulo and by selling expenses.
As a result, Natura's consolidated EBITDA reached BRL 620 million in 2Q26, with a margin of 12.0%-or 13.2% excluding the impact of the tax mismatch-up by +470 bps when compared to the previous quarter.
Despite the challenging performance in Brazil, the Company reported positive free cash flow to firm of BRL 342 million, and its leverage ratio stood at 2.06x, a slight decrease compared to the previous quarter.
Paving the way for future growth - In early July, Natura had already informed the market that the quarter's revenue had been impacted by a series of internal operational adjustments. Now, upon releasing its 2Q26 results, the Company reiterated that actions are underway to address these issues, including:
- Initiatives to rebalance the supply chain throughout the second half of 2026.
- Incentives for the sales force and commercial strategies targeting high-turnover categories.
- A return to a rapid pace of store openings and a new franchise agreement model.
- Expansion of the beauty consultants' new digital store, "Minha Loja," and entry into new marketplaces.
"The operational challenges in the quarter stemmed from necessary adjustments to pave the way for future business growth, such as investments in digital and logistics capabilities and the realignment among direct sales, online, and franchise channels, although product shortages were greater than initially anticipated," commented João Paulo Ferreira, CEO.
In line with its growth ambitions, Natura will continue to make strategic investments in marketing, R&D, and digital innovation, ensuring the long-term health of the business. Accordingly, the Company maintains its expectation of margin expansion relative to 2025 for the reported margin (10.0%), but no longer for the adjusted margin (14.1%). The Company also reaffirmed its outlook for free cash flow to firm to exceed that of the previous year, while keeping leverage levels within the optimal range.
According to the CEO, although this performance represents a temporary setback from the Company's return to full growth, the fundamental business thesis remains unchanged. "We have a business built on strong brands, distributed through a unique model in high-potential markets, and backed by a committed, innovative, and execution-driven team. This is a powerful combination designed to deliver consistent financial growth, high margins, and strong returns."
Regeneration - Reinforcing its commitment to transparency, Natura launched its 2025 Integrated Report and ESG Indicators Booklet in the second quarter. The publications highlight the early achievement of several targets under the 2030 Commitment to Life, including the expansion to 52 bioingredients from Amazonian socio-biodiversity-surpassing the 2027 target of 49-and partnerships with 46 agroextractive communities-exceeding the 2030 target of 45. Natura also met its 2030 target of generating BRL 4 in social and environmental benefits for every BRL 1 in revenue.
Attesting to the potential of sustainability initiatives to generate financial value, Natura's special reverse logistics program collected release liners-the silicone-coated backing paper from stickers for the 2026 World Cup album-through a commercial incentive that generated
BRL 4.45 million in gross revenue. The initiative increased the average ticket by 49.2% in company-owned stores and by 54.1% in franchise locations, while reintegrating the collected material into Natura's supply chain, thus consolidating a closed-loop circular economy model.
About Natura
Founded in 1969, Natura is a leading Brazilian multinational in beauty and personal care in Latin America, ranked as Brazil's most reputable company and ESG leader by the Merco ranking for 12 consecutive years. A pioneer for over 25 years in the cosmetic use of bioactive ingredients from Brazilian socio-biodiversity through partnerships with Amazonian extractive communities, Natura today benefits thousands of families and helps conserve 2.2 million hectares of forest. Products are available through more than 2.8 million consultants across the region, e-commerce, the Natura app, and over 1,000 stores. For more information, visit www.natura.com.br, and follow Natura on LinkedIn, Facebook, and Instagram
View original content:https://www.prnewswire.co.uk/news-releases/natura-revenue-under-pressure-in-brazil-while-hispanic-markets-deliver-growth-and-higher-profitability-in-2q26-302847567.html
