The two sides of the coin in Natura's preliminary results.

After completing a long and turbulent process of restructuring and simplifying its operations, and recently announcing important changes in its governance, Natura had been showing signs that it was finally on the path to regaining investor confidence.

However, on the morning of Wednesday, July 8th, the cosmetics company reinforced the message that there are still turbulences to overcome on this journey, by releasing a relevant fact with preliminary figures for the second quarter of 2026. The consolidated balance sheet will be released on August 10th.

One of the lines that has been under the market spotlight for some time, one indicator in particular caught attention. Natura projected that its consolidated net revenue for the period will be between R$ 5.1 billion and R$ 5.2 billion, which will imply a year-on-year decrease of between 9% and 10%.

The company attributed this estimate to a combination of factors, including a weak consumer market in Brazil and internal operational adjustments, which resulted in lower net revenue for the period than initially anticipated.

While this account may have a significant impact on Natura's balance sheet, some see two sides to this coin, based on a deeper reading of the statement. Even acknowledging that, aside from the macroeconomic scenario and external factors beyond its control, the group bears a share of responsibility in this equation.

“Much of this impact comes from investments made in the quarter that weren’t made before either due to a lack of resources or available management capacity,” a manager who follows the stock told NeoFeed . “But these were investments necessary for future growth and are taking a toll in the short term.”

In the relevant fact, Natura listed what these components were, some of which had already been communicated to the market. Starting with issues of logistics, production and technology, which ended up affecting the supply chain of the operation.

The package included stabilizing the newly implemented integrated planning system and upgrading the management system to the German SAP platform, as well as relocating volumes from the former Avon factory in Interlagos, São Paulo, which recently closed, to the Cajamar unit.

“The planning system was obsolete and the previous management system was already 25 years old,” says another manager. “When all this came into operation, they saw that there were parameters out of order, which impacted the stabilization time and affected the supply chain.”

These initiatives led to a product shortage which, in turn, coupled with a slowdown in cosmetics consumption, generated a drop in sales volume through Natura's consultant channel. In response to this scenario, the group implemented incentive policies for these saleswomen.

The busy agenda of the period also included measures to establish a more equitable pricing structure and commercial rules across the different channels of the operation – from consultants and e-commerce to marketplaces and physical stores.

In parallel, Natura promoted the transition of 100% of its franchise contracts to a sell-out sales model during this period. Until then, a significant portion of this base followed the format adopted for consultants, since many of them are behind the approximately one thousand stores in the network.

As a final unfavorable element in this equation – and aside from the company's initiatives – Natura cited the tax mismatch, with its effect concentrated in the second quarter, resulting from changes in the consumption tax in the state of São Paulo.

In highlighting these impacts, the company also emphasized that it has been implementing a series of measures to overcome the challenges of this context, including initiatives such as reconfiguring the supply chain.

Another effort involves expanding into digital channels, the most recent example being Avon's entry into the Shopee marketplace. The company also reported that it will resume its accelerated pace of store openings – in 2025, there were 76, compared to the previous average of approximately 200 units.

Finally, regarding profitability, which is also a target for investors, the group did not cite specific figures, but announced that it expects an expansion of its EBITDA margin in the second quarter, due to lower expenses associated with its restructuring.

Positive balance?

Taking both sides of the coin into account, the fact that Natura decided to anticipate some of the "bad news" to the market, something it hadn't done before, is also seen as a positive sign and reinforces a stance that the group has adopted for about a year.

The turning point came with the company's 2025 Investor Day, held at its headquarters in Cajamar, after a long period without in-person meetings with analysts. Since then, the group has become more transparent about its actions, something that had been demanded by the market.

“They are saying, without mincing words, that they are going to disappoint,” says one of the managers interviewed by NeoFeed . “And, as bad news as it may seem, these are investments that, again, needed to be made, and they are highlighting what they are doing to correct these difficulties.”

On its path to regaining market confidence, Natura recently gained a powerful ally as part of a restructuring that included a new shareholder agreement and the transition of founders Guilherme Leal, Pedro Passos, and Luiz Seabra to an advisory committee.

The reinforcement in question is Advent , following an agreement signed with this controlling group at the end of March, which stipulated that the American private equity firm would reach a stake equivalent to a minimum of 8% and a maximum of 10% of Natura's capital within six months.

This agreement began to be fulfilled last week, with the announcement that Advent had effectively reached the minimum agreed-upon amount, through a 6.6% stake held by Lotus Fundos de Investimento em Participações, managed by Advent, and an additional 1.4% position in derivatives.

According to the terms agreed between the two parties, Advent will have the right to appoint two additional members to Natura's new board of directors, formed and approved in April of this year. It is now chaired by Alessandro Carlucci, who previously served as CEO of the company between 2005 and 2014.

The next step will be to convene an extraordinary general meeting to approve the arrival of these new members to the board. And, by all indications, Advent's role, known for its experience in restructurings, will not be limited to the board.

According to information obtained by NeoFeed , representatives from the American asset manager are expected to play a significant role in the company's newly formed strategic performance committee, as part of its recent governance restructuring process.

In a sign that this entire package is being well received by the market, Natura's shares were up 5.84% around 12:45 pm, after opening the trading session with a drop of more than 2%. Year-to-date, the shares have accumulated a 14.3% increase in value, valuing the company at R$ 11.7 billion.