Natura Reports Q1 2026 Financials

Natura reported its first quarter 2026 results, with net revenue of $960 million, EBITDA of $70 million, and EBITDA margin of 7.3%. 

Performance was pressured by the macroeconomic slowdown and lower consultant activity and headcount in its main market of Brazil. 

Results further reflect the ongoing recovery of Argentina operations post the Avon integration in the second half of 2025 amid declining consumption and an unfavorable exchange rate in the country.

CEO João Paulo Ferreira, said, 

“Having implemented the new operating model without disruptions, our focus turns entirely to sustainable revenue growth and expanding profitability. We are confident in delivering on our 2026 commitments, which include improving annual margin versus 2025 and robust cash generation, with our optimal capital structure and disciplined capital allocation translating directly into returns for shareholders.”

Across the Hispanic region as a whole, the Natura brand grew 7% in constant currency.

Excluding Argentina, the other Hispanic markets delivered solid performance in the first three months of the year. This was driven by positive contributions from markets where the Avon integration is already more mature and by the ongoing recovery in Mexico, where the brand combination was completed in the first half of 2025.

Despite revenue headwinds, Natura Brazil gained market share in the quarter on the back of sell-out growth (sales to the end consumer), while steadily recovering the relationship selling channel with a sequential increase in the number of beauty consultants. 

Brazil’s digital sales grew +23.6% YoY, underpinned by stronger platform traffic and key initiatives such as live commerce and the ongoing digitization of the consultant network. In retail, revenue increased 14.3% YoY.

Q1 2026 also marked the beginning of Avon’s relaunch in Brazil and Mexico in March, with a new positioning and innovation portfolio to be rolled out in phases. 

While still in its early stages and accounting for a small share of total volume, the relaunch has already generated above-expectation sales for Avon’s new products and delivered improvements in brand health metrics.

Profitability in the quarter was impacted by the revenue slowdown, coupled with non-operating and non-recurring expenses amid the implementation of Natura’s new operating model, which has already established a leaner, more agile, and efficient structure effective from the beginning of 2026.