Natura &Co Reports Disappointing Q2 2026 Results Amid Brazil Challenges

## Natura &Co Reports Disappointing Q2 2026 Results Natura &Co has posted a net profit of 35 million reais (BRL) for the second quarter of 2026, marking an 82% drop compared to the 196 million recorded during the same period in 2025. This result fell short of Citi's forecast, which had projected BRL 137 million. The company's consolidated net revenue reached BRL 5.17 billion in the April-June period, representing a 9.1% year-on-year decline. ## Brazil Market Challenges Weigh on Natura &Co's Performance The company's three main business segments - Natura, Avon, and Casa & Estilo - all experienced revenue declines during the quarter. The Natura brand posted an 8.2% decrease, while Avon reported an 11% drop in sales. The weaker performance in Brazil was mainly attributed to product stockouts, temporary tax timing effects, and a softer consumer environment. Revenue in the Brazilian market declined 14.8% year on year to BRL 3.07 billion. ## Regional Variations in Performance In contrast, Spanish-speaking Latin America delivered growth and partially offset the pressure from Brazil. Revenue in the region reached BRL 2.1 billion, up 0.7% in nominal terms and 7.2% at constant exchange rates. Natura and Avon recorded revenue growth of 5.0% and 1.4%, respectively. Regional EBITDA rose to BRL 160 million, representing a 92.7% year-on-year increase, while the EBITDA margin expanded to 7.6%. ## Group Management's Assessment The Group's management team commented on the Q2 2026 results, stating that they revealed greater-than-expected operational challenges in Brazil, which were amplified by the macroeconomic environment. However, efficiencies from the new operating model, combined with a healthy gross margin, kept the region's profitability in the mid-teens - or high teens when excluding the temporary impact of indirect tax changes in the State of São Paulo. Conversely, performance improved across both revenue and profitability in the Hispanic markets. On a consolidated basis, operational challenges in Brazil weighed more heavily due to its significant share of the overall business.