Natura Cosméticos (NATU3) investor relations material

Executive summary

• Completed merger of Natura &Co into Natura Cosméticos, streamlining the holding structure and focusing on LATAM operations.

• Avon International and CARD reclassified as assets held for sale, with ongoing separation and sale processes expected to conclude within 12 months.

• Integration of Avon and Natura in LATAM (Wave Two) nearing completion, with Mexico and Argentina integrated as of July.

• Digital and retail channels outperformed consolidated growth, with digital penetration at 82.1% of consultants.

• Published 2050 vision, shifting from sustainability to a regeneration-focused approach, and received top ESG ratings.

Financial highlights

• Q2-25 net revenue was BRL 5.7 billion, up 5.5% in constant currency; recurring EBITDA margin reached 14.0% (+80 bps YoY), and net income for continuing operations was BRL 445 million.

• Natura brand in Brazil posted 10.3% revenue growth, while Avon brand revenue declined 12.9% in Brazil and 13.6% in the Hispanic region.

• Gross margin reached 66.4% (+80 bps YoY); recurring EBITDA was BRL 796 million (+4.5% YoY).

• Free cash flow from continuing operations was negative BRL 9 million in H1-25, mainly due to leverage-related financial expenses.

• Net debt increased to BRL 4.0 billion (net debt/EBITDA 2.18x), mainly due to Avon International's cash outflow and reclassification.

Outlook and guidance

• Management expects continued margin expansion for FY25, with further cost efficiencies and completion of Wave 2 integration.

• Macroeconomic headwinds in LATAM, especially Brazil and Mexico, and potential FX depreciation in Argentina are noted as challenges.

• Final steps of integration and IT migration for Avon expected by year-end, with integration-related expenses ending after 2025.

• New product launches for Avon expected to impact results from late 2025 into 2026.