A Nature () bet on relaunching the brand Avonnew products and efficiency of the operating model to maintain the pace of delivering results presented in the fourth quarter of 2025. Amid a 10% appreciation in the share at the beginning of the day, the company still deals with skepticism from part of the market about its next steps.
In recent years, the company completed a process of integration of the Avon and Natura brands in six markets in Latin America, in addition to the sale of the Avon International and Avon Russia operations. “In 2025, with the last two countries, Argentina and Mexico, already integrated, we will complete this journey, enabling Avon’s growth to be transformed into positive profitability for the business from now on,” said the company’s CFO, Silvia Vilas Boas, at a press conference.
Despite having reversed a loss of R$227 million in continued operations in the fourth quarter of 2024 to a net profit of R$186 million in the same period of 2025, revenues fell 12.1% in the annual comparison, to R$6.1 billion. Despite fears, the general reaction was positive, with a gain of around 10% in the stock during the morning.
Part of the cause behind the decline in revenues is related to the integration of markets in Latin America, but not all of it. “We were coming from a very strong comparison to the previous year. Maintaining the pace of the same year would already be a challenge. As circumstantially we saw the activity. Whether due to credit restrictions imposed by us or consumption restrictions throughout Brazil in the second half of the year, our network was less active”, said the company’s CEO, João Paulo Ferreira about the Natura brand.
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Even though it maintained its market leadership, the brand lost share in the last quarter, says Ferreira. He says, however, that the company already has actions to resume growth, creating a new set of incentives for the sales force and seeking to stimulate the recruitment, retention and activity of small consultants.
Furthermore, the company is strengthening Natura Brasil’s launch schedule for the year, after increased competition with independent and imported brands in the second half of last year. “At the end of last year, we revisited our launch funnel to be able to position ourselves even better in the face of competitive challenges. We will see a sequence of launches in the second quarter of 2026”, said Ferreira.
Efficiencies generated by the new operating model should also increase results this year, says the company. According to Ferreira, until now Natura had to deal with a lot of fragmentation caused by the combination of companies. This meant multiple systems, assets and brands that created operational complexity. An example: the number of systems fell from 800 to 300 in Latin America.
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Avon relaunch
In recent days, Natura officially relaunched the Avon brand in Brazil to the public. The strategy is part of a repositioning effort to serve younger customers, connected to the world of beauty, fashion and social media. The brand will also be more affordable compared to Natura, but more expensive than before the reformulation.
The relaunch seeks to respond to growing competition from independent brands created, for example, by influencers in recent years. “Avon’s strategic role is to maintain high activity in scenarios of income restrictions. For whatever reason. Avon has precisely this role, being more accessible. But it needed to be more attractive too”, says Ferreira.
The entire transformation has to do with a change in the management of the brand, which stopped being carried out from London about a year ago and was placed in the hands of the Latin American operation. Today, Avon is responsible for around 20% of the business, while the other 80% comes from the Natura brand itself.
