NATU3

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 that focuses 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. In that same year, the first store was opened on Oscar Freire Street in São Paulo. In 1974, the company began adopting the direct sales model as the basis of its business, a move that shaped its commercial approach in the following decades. In 1982, it began its international expansion through a local distributor in Chile, and in 1988 it started operating as Natura Cosméticos S.A. Internationalization continued with its entry into Argentina and Peru in 1994, while the company consolidated an image strongly associated with Brazilian biodiversity and sustainability.

From the 2000s onward, Natura deepened its industrial development and its presence in the capital markets. In 2001, it inaugurated the integrated research and production complex in Cajamar (SP), designed to concentrate the manufacturing and development of cosmetics with flexibility for expansion. In 2004, it carried out its IPO on the then São Paulo Stock Exchange, now B3, and became part of the Novo Mercado listing segment. The company was included in 2005 in the first portfolio of B3’s Corporate Sustainability Index (ISE), and has since remained one of the best-known cases of integration between business strategy, the use of environmental assets, and corporate sustainability positioning. In the following decade, the group went through a cycle of significant international acquisitions – such as the Australian brand Aesop, the 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 exploration, production, import and sale of beauty, personal hygiene, perfume and related products, including categories such as women’s, men’s and children’s fragrances, makeup, facial and body skin care, bath products, hair treatments, gift sets and therapeutic items for the home. The corporate purpose of the company also covers clothing, food, nutritional supplements, herbal and homeopathic medicines, jewelry, fashion jewelry, home goods, baby products, bedding, table and bath products, as well as related services, although its core activity remains focused on cosmetics and beauty. The current structure is organized into a single operating segment that consolidates all Natura and Avon operations in Latin America, with revenue from the sale 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, as well as body oils, soaps, bath products and therapeutic home 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 activities with a strong presence in makeup, facial care and a well-established tradition in direct selling. Its portfolio includes categories such as makeup, facial treatments, daily care, fragrances, hair, as well as the Casa & Estilo line and gift sets, with brands like Color Trend, Renew and Avon Care. While Natura tends to position itself with greater emphasis on biodiversity, naturally sourced ingredients and the concept of “bem estar bem” (well-being and living well), Avon reinforces a proposition of accessible technology and a focus on empowering beauty consultants. This complementarity enables the group to operate across multiple price ranges, from mass 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 in a multichannel model, in which Relationship Selling (direct sales) is combined with physical retail and digital channels. The network of beauty consultants is a key asset for 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 company-owned stores and franchises, as well as e-commerce platforms that serve end consumers directly, seeking to advance toward an omnichannel model in which consultants, physical stores and online channels are integrated into a continuous 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 houses three factories specialized in makeup, fragrances and personal care products, with a layout designed to allow rapid capacity expansions. In Benevides (PA), the so-called “Ecoparque” was established in 2014 to bring production closer to Amazonian biodiversity, with a focus 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 the gradual transfer of production to Cajamar. The hubs in Moreno, Argentina, and Celaya, Mexico, originally 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, physical retail and e-commerce — through third-party fleets and logistics operators. The company invests in automation, logistics unification between the Natura and Avon brands and process digitalization to shorten delivery times and increase operational efficiency across 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 shares 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’s and Avon’s activities are subject to a broad regulatory environment, especially in health, sanitary surveillance, environment and data protection. In Brazil, the cosmetics industry is regulated by ANVISA, which requires operating permits, product registration, compliance with sanitary standards for manufacturing, storage and transportation, and the updating of formulas based on technical safety and efficacy criteria. 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 of 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 where 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 continued presence in the Corporate Sustainability Index since the mid-2000s reinforces its focus on environmental and social practices, which include the use of biodiversity inputs under relationship models with supplier communities, the development of products with concern for environmental impact, and the management of greenhouse gas emissions. In 2021, the company completed the issuance of debt securities linked to sustainability targets, tying part of its cost of capital to achieving objectives 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 holding company Natura &Co 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.