Brazilian beauty giant Natura scraps earnings targets as losses mount

(Reuters) -Brazilian cosmetics maker Natura & Co Holding SA on Wednesday posted a third straight quarterly loss and said it was scrapping previously given financial targets as it deepens its restructuring efforts. Hit hard by slumping consumer demand …

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Hit hard by slumping consumer demand globally as high inflation bites, the owner of the Natura, Avon, Aesop and the Body Shop brands logged a net loss of 559.8 million reais ($108 million) in the quarter ended September.

That compares with a 272.9 million reais profit in the same period a year earlier.

Net revenues dropped 6% to 9 billion reais but were up 2.2% in constant currency terms. Even in constant currency terms, however, its Body Shop sales tumbled 20% and its Avon International sales also fell.

Core earnings slid 38% to 589.5 million reais.

Natura, which saw new Chief Executive Fabio Barbosa take the helm in June, has been reviewing its business model and presence in underperforming markets. It has also flagged a possible U.S. initial public offering or spin-off of the luxury Aesop brand.

Barbosa said in a statement the results were in line with expectations that the company had given last quarter and its reorganisation efforts were proceeding well.

The company’s shares have fallen 48% for the year to date.

($1 = 5.1864 reais)

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