First-quarter results from Natura &Co suggest its retail businesses are being impacted by the increasingly difficult trading conditions.
The Brazilian group saw its total revenue fall 4.6% on constant currency terms to R$8.3bn during the first three months of 2022.
Revenue in its Avon International unit slipped 10.1%, with the company blaming the impact from the war in Ukraine, lower disposable income in Europe, and intentional optimisation linked to the implementation of a new commercial model.
Meanwhile, The Body Shop saw its revenue plummet 16% due to weaker consumer spending and tough comparisons with last year when its e-commerce sales surged during the Covid lockdowns.
The only highlight was a return to growth for its homegrown Natura brand in Brazil and a 21.3% jump in revenues at Aesop.
Roberto Marques, Executive Chairman and Group CEO, commented: “While our Q1 performance was impacted by rising inflation, cost pressures in the supply chain, unfavourable currency movements, and the first effects of the war in Ukraine, they also reflect The Body Shop channel rebalancing and weak consumer demand in Europe, as well as key strategic decisions related to Avon’s transformation, including a reduction in the product portfolio and the implementation of the new commercial model.”
