Strong digital sales across the Body Shop in Europe have lifted Brazilian owner Natura to a strong third quarter, despite sales at Avon falling.
Consolidated group sales rose 11.6% on a constant currency basis to R$10.4bn (€1.6bn), thanks to strong digital sales across all its brands. Adjusted EBITDA was up 14.8% to R$1.55bn (€250m), with a margin of 14.8% after gaining 330 basis points thanks to increased revenues and cost savings.
The Body Shop revenues rose 8.2%, as consumers successfully shifted online during the pandemic in key markets of the UK and Australia. Sales at Aesop climbed 19.9%, again driven by online sales.
Sales at Avon fell 7.3% as previously strong growth in Western and Central Europe was hit by lockdowns in other markets.
In a statement, Roberto Marques, Executive Chairman and Group CEO of Natura &Co, says: “Enabled by continued digitalization, our brands delivered strong results in the third quarter, with significant growth in sales and margin improvement.”
His statement continues: “In an environment that has remained challenging throughout the world as a result of the Covid-19 pandemic, we delivered superior results compared to the CFT market both globally and in Brazil. Our performance this quarter attests to the strength of our fundamentals, our unparalleled Direct-to-Consumer reach, and the resilience of our omnichannel, multi-brand model.”