NATU3: quote, dividends and indicators for 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 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. 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 started its international expansion through a local distributor in Chile, and in 1988 it began 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 manufacturing and development of cosmetics with flexibility for expansion. In 2004 it went public on what was then the São Paulo Stock Exchange, now B3, joining the Novo Mercado listing segment. The company was included as early as 2005 in the first portfolio of the B3 Corporate Sustainability Index (ISE), and has since remained one of the best-known 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 significant international acquisitions – such as the Australian 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 exploitation, 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 treatment, gift sets and therapeutic home products. The company’s corporate purpose also includes clothing, food, nutritional supplements, herbal and homeopathic medicines, jewelry, costume 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 under a single operating segment, which 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 operations with a strong presence in makeup, facial care and a well-established tradition in direct sales. Its portfolio covers makeup, facial treatment, daily care, fragrances, hair, as well as the Casa & Estilo line and gift sets, 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 and feeling good) concept, Avon reinforces a value proposition of accessible technology and a focus on empowering beauty consultants. This complementarity allows the group to operate across multiple price ranges, from mass to premium, and across different consumer profiles within the regional beauty and personal care market.

Distribution of Natura and Avon products is structured under a multichannel model, in which Relationship Selling (direct selling) 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 to four weeks. In parallel, the group invests in own 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 productive 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 specializing in makeup, fragrances and personal care products, with a layout designed to enable rapid capacity expansions. In Benevides (PA), the so-called “Ecoparque” was established in 2014 to bring production closer to Amazonian biodiversity, focusing on soaps, fixed and essential oils and vegetable butters, involving supply chains from local communities. The historic Interlagos Industrial Complex, associated with Avon’s operations, had its sale announced in 2023 as part of a restructuring, with a 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 entirely 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 third-party fleets and logistics operators. The company invests in automation, logistics unification between the Natura and Avon brands, and process digitalization to reduce 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 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 licenses, product registration, compliance with sanitary standards for manufacturing, storage and transportation, and formula updates under technical criteria of safety and efficacy. In addition to health 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 local competition, consumer protection, environmental and health and safety regulations 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 continuous 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 with 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 sustainability-linked debt securities, tying part of its cost of capital to meeting targets such as reducing emissions intensity (Scopes 1, 2 and 3) and increasing the share of post-consumer recycled plastic in packaging. In terms of governance, the shareholding 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 in B3’s Novo Mercado, subject to the necessary regulatory and shareholder approvals.