In stark contrast to what has become the norm in recent years, Natura saw its shares soar on the B3 stock exchange on Tuesday morning, March 17, hours after releasing its fourth-quarter and consolidated 2025 results.

The shares opened today's trading session rising almost 10%, leading the gains on the Ibovespa. And, around 1:20 PM, they were up 8.56%, trading at R$ 9.37, valuing the company at R$ 12.8 billion. Year-to-date, the shares have accumulated a 25.7% increase in value.

However, more than the financial results , which showed mixed numbers, what seems to have pleased the market was the perception that Natura is finally leaving behind a rather turbulent cycle. This does not mean, however, that the efforts to regain investor confidence are complete.

“There is a lack of consistency. We are failing to consistently demonstrate growth in revenue, profitability, and cash flow, which, over the past few years, has been compromised by a series of non-recurring events,” said João Paulo Ferreira, CEO of Natura, in a conversation with journalists.

The non-recurring events cited by Ferreira originate from a broad restructuring initiated in mid-2022, when Natura decided to put an end to its aspiration to become a global cosmetics platform.

The company began selling the assets acquired to make this ambition viable, starting in 2023 with Aesop and The Body Shop. In 2024, the group began evaluating options for Avon 's operations, acquired in 2019 for US$2 billion and the biggest symbol of this strategy outside of Latin America.

This package initially involved the sale of operations in Central America in September 2025. The most anticipated agreement, however, concerned the brand's assets in Europe, Asia, and Africa, which was finalized in January of this year. And the last chapter of this saga was the sale of Avon Russia in February.

In parallel, Natura also concluded, at the end of 2025, the long, expensive and complex process of integrating the operations of Natura and Avon in Latin America, finalizing these efforts in Mexico and Argentina, the last two countries missing from this map.

“Now, our operations and balance sheet are completely clean,” the executive continued. “So, I am quite confident that, from now on, we will have a lot of consistency and the market will take notice.”

The most recent chapter in this narrative, the report released on the evening of Monday, March 16th, further highlighted some of the impacts of this context. And, at the same time, it offered some indications of what to expect in the future.

Taking into account the business resulting from this simplification strategy – the Natura and Avon brands in Latin America – the company ended the fourth quarter of 2025 with a net profit of R$ 186 million, reversing the loss of R$ 277 million recorded in the same period of 2024.

The company highlighted that the bottom line of the balance sheet was impacted by a non-recurring, non-cash provision of R$ 434 million related to receivables from the sale of The Body Shop. Excluding this factor, net income from continuing operations would have been R$ 620 million.

Regarding continuing operations for the year as a whole, net income was R$ 463 million, compared to a net loss of R$ 644 million reported in 2024. Adjusted quarterly EBITDA grew 57.2% to R$ 978 million, and annual EBITDA grew 9.5% to R$ 3.1 billion.

The group ended the year with net debt of R$3.47 billion, a reduction of R$567 million compared to the third quarter. Leverage stood at 1.57 times, an improvement of 0.96 times on the same basis of comparison. Excluding the provision for the sale of The Body Shop, the ratio would be 1.31 times.

“The operation in Latin America has shown consistent profitability growth. Not at its maximum potential, but it has shown consistency,” said Silvia Vilas Boas, CFO of Natura, repeating the term that was one of the key themes of the conversation. “And, from now on, without these additional burdens, we will unlock even more value.”

Falling revenue and other challenges

On the other hand, less positively, the group's quarterly net revenue fell 12.1% to R$6.1 billion, which the company attributed to factors such as the slowdown in consumption in Brazil and instabilities related to integration in Argentina. For the year, the indicator fell 5% to R$22.2 billion.

In detail, there were also declines in each market that now comprises the operation. In Brazil, quarterly revenue fell 4.8%, to R$ 3.7 billion. In the Hispanic division, which includes the other countries in the region, the decline in this indicator was 21.5%, to R$ 2.4 billion.

“In Brazil, we experienced some revenue difficulties due to a less active and somewhat smaller network of consultants, in addition to the impact of consumption in the Northeast, our most important regional market,” said Ferreira.

He emphasized, however, that the company has already implemented some measures to resume growth in these operations. Among them are the creation of a new set of incentives for the sales force and the strengthening of the launch schedule for 2026, starting in this second quarter.

This reaction also involves the relaunch of the Avon brand, which is happening this March in Brazil and Mexico. The plan is to position the brand with younger customers, with a focus strongly associated with social media and technology.

“This implies much more agility in products and in the way we communicate,” said Ferreira. “And, even though it’s a bit more premium than it is today, the brand has a more accessible price than Natura’s lines and will play a strategic role in maintaining high activity in a scenario of income restriction.”

In this regard, the pair highlighted other challenges, in a context that includes both macroeconomic issues in each country – in the case of Brazil, a World Cup year, elections, and still high interest rates – as well as global factors, the main one being the war between the United States and Iran.

“War can have an impact, as the cost of our inputs that use oil as a base tends to increase,” said Vilas Boas. “Regarding Latin America, we are among the strong nations that know how to operate in the region. So, we will enter with our heads held high and react as quickly as possible.”

Regarding speed, executives highlighted the fact that Natura is implementing a new operational model with fewer layers, elimination of duplicate functions, alignment of incentives, and the goal of streamlining decision-making.

“Until then, we had to deal with a lot of fragmentation of companies, processes, and systems. For example, there were more than 800 systems in the region. Today, there are fewer than 300,” said Ferreira. “The new model is fully integrated and looks outward. All functions have been regrouped to serve customers.”