NATU3 Natura

Natura Cosméticos S.A., whose shares are traded on B3 under the ticker NATU3, is a Brazilian company in the beauty and personal care sector, focusing its operations on cosmetics, fragrances, makeup and hygiene products. The group’s history dates back to 1969, when Antonio Luiz da Cunha Seabra and Jean Pierre Berjeaut founded Indústria e Comércio de Cosméticos JeBerjeaut, later renamed Natura Indústria in 1970. That same year, the first store was opened on Oscar Freire Street in São Paulo. In 1974, the company adopted the direct sales model as the foundation of its business, a move that shaped its commercial approach in the following decades. In 1982 it began international expansion through a local distributor in Chile, and in 1988 it began operating as Natura Cosméticos S.A. Internationalization continued with entry into Argentina and Peru in 1994, at the same time the company was consolidating a brand image strongly associated with Brazilian biodiversity and sustainability.

From the 2000s onwards, Natura deepened its industrial development and its presence in the capital markets. In 2001 it opened the integrated research and production complex in Cajamar (SP), designed to concentrate cosmetics manufacturing and development with flexibility for expansion. In 2004 it carried out its IPO on the then São Paulo Stock Exchange, now B3, becoming part of the Novo Mercado listing segment. The company was included as early as 2005 in the first portfolio of B3’s Corporate Sustainability Index (ISE), and has since remained one of the most prominent cases of integration between business strategy, use of environmental assets and positioning in corporate sustainability. In the following decade, the group went through a cycle of major international acquisitions – such as Australian brand Aesop, cosmetics retailer The Body Shop and, more recently, the incorporation of Avon’s operations in Latin America – which expanded its global scale, although these assets were later divested as part of a process to simplify the business model.

Natura’s business model is based on the development, production, import and sale of beauty products, personal hygiene items, perfumes and related goods, including categories such as women’s, men’s and children’s fragrances, makeup, face and body skin care, bath products, hair treatment, gift sets and therapeutic items for home environments. The company’s corporate purpose also covers apparel, food, nutritional supplements, herbal and homeopathic medicines, jewelry, fashion jewelry, household items, baby products, bedding, table and bath items, as well as related services, although its core activity remains focused on cosmetics and beauty. The current structure is organized in a single operating segment, which consolidates all Natura and Avon operations in Latin America, with revenue from sales of goods, products and services monitored on an integrated basis. Natura’s brand portfolio includes lines such as Ekos, Humor, Una, Essencial, Ilía, Luna, Kaiak, Natura Homem, Chronos, Tododia, Mamãe e Bebê, among others, covering everything from fragrances to facial, body and hair care, in addition to body oils, soaps, bath products and home therapeutic items under the Bothânica line.

The Avon brand, originally founded in New York and incorporated into the group as part of its expansion strategy in Latin America, complements Natura’s operations with a strong presence in makeup, facial care and a well-established tradition in direct selling. Its portfolio spans makeup, facial treatment, daily care, fragrances, hair care, as well as the Casa & Estilo line and gift kits, with brands such as Color Trend, Renew and Avon Care. While Natura tends to position itself with a stronger emphasis on biodiversity, naturally sourced ingredients and the “bem estar bem” (well-being/well-living) concept, Avon reinforces a proposition of accessible technology and a focus on empowering beauty consultants. This complementarity allows the group to operate across multiple price ranges, from mass-market to premium, and to serve different consumer profiles within the beauty and personal care market in the region.

Distribution of Natura and Avon products is structured under a multichannel model, in which Relationship Selling (direct sales) is combined with brick-and-mortar retail and digital channels. The network of beauty consultants is a core asset of the company: the relationship selling structure involves approximately 3.2 million independent consultants in Latin America, who sell the Natura, Avon and Casa & Estilo portfolios in around 15 countries. This channel is supported by digital tools such as the “Minha Consultoria” app and physical and digital catalogs, with cyclical sales campaigns every three or four weeks. In parallel, the group invests in owned stores and franchises, as well as e-commerce platforms that serve end consumers directly, seeking to move toward an omnichannel model in which consultants, physical stores and online channels are integrated into a seamless shopping journey.

Natura’s production structure in Latin America is anchored in four industrial hubs, located in Brazil, Argentina and Mexico. In Brazil, the Cajamar Industrial Complex concentrates three factories specializing in makeup, fragrances and personal care products, with a layout designed to allow rapid capacity expansion. In Benevides (PA), the so-called “Ecoparque” was established in 2014 to bring production closer to Amazon biodiversity, focusing on soaps, fixed and essential oils and vegetable butters, involving supply chains from local communities. The historic Interlagos Industrial Complex, linked to Avon’s operations, had its sale announced in 2023 as part of a restructuring, with gradual transfer of production to Cajamar. The hubs in Moreno, Argentina, and Celaya, Mexico, originating from Avon, were adapted to serve both brands and play a relevant role in supplying local markets and other countries in the region. In 2024, about 85.4% of the volume of cosmetics and beauty products was produced in-house and 14.6% by third parties, while the Casa & Estilo line is fully outsourced.

The logistics chain is supported by 19 distribution centers in Latin America, including logistics hubs in countries such as Brazil, Argentina, Chile, Colombia, Ecuador, Peru, Guatemala, the Dominican Republic and Mexico. These centers supply all channels — relationship selling, brick-and-mortar retail and e-commerce — through fleets and third-party logistics providers. The company invests in automation, logistics integration between the Natura and Avon brands and process digitalization to reduce delivery times and increase operational efficiency in an extensive and heterogeneous territory. International operations cover 12 countries, with revenue distributed mainly among Brazil, other South American markets and Mexico, in addition to smaller stakes in North America, Europe, the Middle East, Africa and Asia. Although the company discloses revenue by region, there is no public breakdown by country in all jurisdictions, reflecting management focused on regional market clusters.

Natura and Avon’s activities are subject to a broad regulatory environment, especially in health, sanitary surveillance, environmental matters and data protection. In Brazil, the cosmetics industry is regulated by ANVISA, which requires operating permits, product registrations, compliance with sanitary standards for manufacturing, storage and transport, and formula updates based on technical criteria of safety and efficacy. In addition to sanitary licenses, the company must maintain environmental permits for its industrial units, in accordance with federal, state and municipal legislation, including preliminary, installation and operating licenses, as well as approvals from agencies such as IBAMA, ICMBio, FUNAI, IPHAN and INCRA, depending on the location and type of environmental impact. The company is also subject to the General Data Protection Law (LGPD) and related legislation, given the significant volume of personal data from consultants, employees and consumers processed in its physical and digital operations, as well as to local rules on competition, consumer protection, environment and health and safety in each country in which it operates.

The sustainability and corporate governance agenda is a relevant part of Natura Cosméticos S.A.’s identity throughout its trajectory as a publicly traded company on B3. Its continuous presence in the Corporate Sustainability Index since the mid-2000s reinforces the focus on environmental and social practices, which include the use of biodiversity inputs under relationship models with supplier communities, the development of products with an eye on environmental impact, and the management of greenhouse gas emissions. In 2021, the company completed the issuance of sustainability-linked bonds, tying part of its cost of capital to meeting goals such as reducing emissions intensity (Scopes 1, 2 and 3) and increasing the share of post-consumer recycled plastic in packaging. In governance, the corporate structure has undergone reconfigurations, with the creation and subsequent proposed merger of the Natura &Co holding company into Natura Cosméticos S.A. itself, in a move aimed at simplifying the corporate organization chart and centralizing the shares traded on B3’s Novo Mercado, subject to the necessary regulatory and shareholder approvals.