Natura profit slumps 92% as Brazil pressures mount

Natura's second-quarter profit slumped 92% year on year, according to Cosmetics Business, as its Brazilian operations came under sustained pressure that its performance in Hispanic markets could not offset. The scale of the decline marks one of the sharpest earnings drops reported by a major beauty group this year and points to structural strain in Natura's largest and most important market.

The result adds to a run of difficult years for Natura, which has spent recent seasons divesting international assets, including the sale of Avon's international operations and the earlier disposal of The Body Shop, to refocus on its core Latin American direct-selling and retail business. That the home market itself is now the primary drag suggests the retrenchment strategy has yet to deliver the stability the company was seeking. Currency volatility, inflation and competitive pressure from both global beauty majors and fast-growing local challengers in Brazil have all weighed on direct-selling models that rely on large networks of independent consultants.

For the wider beauty industry, Natura's results are a reminder that not every market is benefiting equally from the sector's broader resilience. Watch for whether management uses the results to accelerate cost cuts or further reshape the portfolio, and whether Hispanic America, now a rare bright spot, becomes a bigger strategic priority relative to a Brazilian business that once defined the company.

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