Natura &Co stock reports a 9.10 percent Q2 revenue decline

Published on 09/30/2026 at 17:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Natura &Co stock faces a BRL 410.0 million Q2 net income gap versus 2025. Hispanic revenue grew 7.20 percent in constant currency while Brazil fell 14.80 percent.

NTCO, BRNTCOACNOR5, Illustration mit AI erstellt.

Natura &Co Holding S.A. (BRNTCOACNOR5) reported BRL 5.17 billion in Q2 2026 revenue, down 9.10 percent year over year in BRL, as operating problems weakened Brazil. The figures from the August 11, 2026 earnings call put execution and margin recovery at the center of the stock story.

Brazil drives the earnings setback

According to Yahoo Finance, Brazil revenue declined 14.80 percent versus Q2 2025. Management attributed the pressure to product shortages during a manufacturing-system rollout, channel adjustments and the temporary effect of higher indirect taxes in Sao Paulo.

The earnings comparison was severe. Q2 net income fell to BRL 35.0 million from BRL 446.0 million on a comparable basis, a BRL 410.0 million year-over-year decline. Reported consolidated EBITDA margin was 12.00 percent, down 200 basis points from Q2 2025.

Hispanic markets offer a counterweight

The regional split matters for investors. Hispanic-market revenue was essentially flat in BRL but increased 7.20 percent in constant currency, while the regional EBITDA margin reached 7.60 percent, up 220 basis points year over year, according to Yahoo Finance.

Cash generation provided a second stabilizing factor. The company reported BRL 342.0 million in Q2 free cash flow and ended the quarter with net debt of BRL 3.9 billion and leverage of 2.06 times, according to the same earnings call. The contrast is clear: Brazil remains the operational drag, while Hispanic markets and cash flow support the recovery case.

Analyst expectations remain materially above the latest B3 quote. Investing.com Mexico lists a 12-month average target of BRL 10.29 from 14 analysts, alongside a consensus mix of 2 Buy, 11 Hold and 1 Sell ratings, but the page does not identify individual target changes.

Market cap stands at BRL 9.1 billion

Natura &Co traded at BRL 6.63 on B3 on September 30, 2026 at 12:21 p.m. BRT. Its market capitalization was BRL 9.1 billion, while the 52-week range stood at BRL 6.42 to BRL 11.15. The gap between the Q2 setback and the recovery measures now defines the company's near-term market narrative.