Q2 2024 Natura &Co Holding SA Earnings Call (English, Portuguese) Transcript
Key Points
- Natura &Co Holding SA (NTCOY) reported consolidated revenue of BRL7.4 billion for Q2 2024, up 5.7% in constant currency.
- Natura &Co LatAm grew 10% in constant currency, driven by strong performance in Brazil and Spanish-speaking countries.
- The company issued a green bond of BRL1.3 billion, maturing in four years, reflecting financial solidity.
- Adjusted EBITDA margin improved by 80 basis points year over year, driven by gross margin improvements and reduced G&A expenses.
- Natura Brazil saw a 15% revenue growth compared to Q2 of last year, driven by successful sales campaigns and product innovation.
- Avon International's revenue declined by 8.4% in constant currency, impacting overall performance.
- The company reported a net loss of BRL859 million for Q2 2024, compared to a net loss of BRL732 million in the same period last year.
- Free cash flow from continuing operations was negative BRL675 million, despite an improvement from the previous year.
- The Body Shop's ongoing impact contributed to a 180 basis points contraction in Avon International's margin.
- Working capital consumption was high at BRL941 million, primarily due to seasonality and increased accounts receivables.
Good morning, ladies and gentlemen. Thank you for waiting. Welcome to Natura &Co's Q2 2024 earnings conference. (Operator Instructions)
Joining us today are Natura &Co's CEO, Fabio Barbosa; and Guilherme Castellan, Natura &Co's CFO. Joao Paulo Ferreira, Executive Director for Latin America, will be joining us for the question-and-answer session. The slide deck we will be referring to during this presentation is available for download at the company's investor relations website.
I will now turn over to Mr. Fabio Barbosa. Please, sir, you may proceed.
Good morning, everyone, and thank you for joining us. I'll start by addressing yesterday's announcement from Avon Products, Inc., API, which is filing for voluntary Chapter 11 bankruptcy with the US courts to address its debt and pre-existing liabilities.
API is a non-operational holding company for Avon in the United States. Natura &Co is API's largest creditor and supporting the company's
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