THE WHAT? Natura &Co has reported its results for the first quarter of fiscal 2024. The Brazilian cosmetics maker saw sales rise 11 percent in constant currency (-5.7 yoy in BRL) to BRL6.1 billion. The Latam division put on 3.1 percent in CC; Natura Brazil was named as the highlight.
THE DETAILS Avon Latam continued to deliver soft top-line, with revenues down 11.3 percent in Brazil, although Avon Brazil showed improving top-line trends throughout the quarter, Natura &Co said. Avon International had a slow start, with revenue dropping 4.7 percent yoy in CC.
The group reported improved profitability, thanks to growing gross margin, which reached 65.2 percent in the three months to March 31, 2024, up 90 bps versus the prior-year quarter, driven by the strong gross margin expansion from Latam (+170 bps). Adjusted EBITDA reached BRL 683million, and adjusted EBITDA margin expanded 110 bps yoy.
THE WHY? Fabio Barbosa, Group CEO of Natura &Co, comments, “We are encouraged that the first quarter of the year showed positive recurring results with a consolidated margin expansion of 110 bps vs previous year, driven by solid results from Natura &Co Latam, benefiting from the Natura and Avon integration in the region, coupled with richer country and brand mix. This more than offset the margin contraction at Avon International amid sales deleveraging.”
Clinical aesthetics products refer to a category of products used in the field of medical aesthetics or cosmetic dermatology. These products are typically designed and formulated to be used under the supervision of healthcare professionals, such as dermatologists, plastic surgeons, or trained aestheticians. They are distinct from over-the-counter cosmetics in that they often contain active ingredients or formulations that require expertise in their application or administration.
Examples of clinical aesthetics products include:
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Dermal Fillers: Injectable substances used to add volume, smooth wrinkles, and enhance facial contours. Examples include hyaluronic acid fillers like Juvederm and Restylane.
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Botulinum Toxin (Botox): Injectables that temporarily paralyze facial muscles to reduce the appearance of wrinkles caused by repetitive movements, such as frown lines and crow's feet.
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Chemical Peels: Solutions applied to the skin to exfoliate and improve its texture. They can treat acne, pigmentation issues, and signs of aging.
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Laser and Light Therapies: Devices that emit focused light or laser energy to treat various skin conditions, including acne, scars, and signs of aging.
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Prescription Skincare Products: Formulations containing active ingredients like retinoids (vitamin A derivatives), hydroquinone, or prescription-strength antioxidants to address specific skin concerns under medical supervision.
