Natura & Co. is targeting the Mexican market in its push to boost sales as chief executive officer João Paulo Ferreira works to reinvigorate the cosmetics company after disappointing earnings at the end of last year.
“We will grow disproportionately in Mexico,” Ferreira said in an interview. Natura plans to expand its presence in the country from its current footprint of 16 stores and stands, as well as its online operation and its network of more than 500,000 beauty consultants that offer its products in the country. Ferreira declined to provide any targets for store openings.
Natura is offering its entire product line, from perfumery to hair products and makeup, in Mexico but currently has just a 5.4 percent share of the market. That trails the 11.5 percent share that French rival L’Oréal holds in Latin America’s second-largest economy.
While the Brazilian company plans to accelerate its investment in Mexico through organic growth, the CEO didn’t rule out an acquisition in the future.
Ferreira, who led the Latin America division before being named to oversee the entire group in March, said his goal is to “capture value from our own business” while laying the groundwork to resume dividend payments.
Natura shares plunged 30 percent on March 14 after fourth-quarter results fell short of expectations, sparking investor criticism. The stock has pared some of those losses to trade at about $10.50 a share, down 17.7 percent so far this year. Ferreira said he’s hoping to restore market confidence with a clearer strategy and financial discipline.
“The Latin America business is a cash generator and we want to minimize cash consumption,” the CEO said in New York this month. “We don’t have short-term debt — and it’s relatively cheap — so in the near future we can expect dividends again.”
Ferreira spent 48 hours in the US financial capital for meetings with international investors, saying his message to them was that Natura is “back on track” under his leadership. He also detected growing interest among global money managers about its home market. “They were keen to talk about Brazil — more than I expected,” he said.
Amazon & Avon
Natura is famous for using Amazon rainforest ingredients in its beauty products and is planning to announce a biodiversity research facility in the region during the COP30 summit in November. The 30th edition of the marquee United Nation climate conference will be held this year in the northern Brazilian city of Belem.
Ferreira said Natura isn’t on the hunt for deals in the short term, but may analyze acquisition opportunities after its Avon International unit completes the bankruptcy protection process it initiated last August. Avon “should not burn as much cash as it burned last year, including the restructuring costs,” Ferreira said.
Asked about a possible buyer for Avon, he said Natura is considering all options, including the sale of assets in parts or in a block.
By Rachel Gamarski
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