Natura & Co stock trades steadily as restructuring and deleveraging shape the beauty group
Published on 07/22/2026 at 22:33 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Natura & Co stock sits in a phase where restructuring and deleveraging rather than rapid expansion drive the investment story for the Brazilian beauty group (ISIN BRNTCOACNOR5). As of 30 April 2025, the company reported a significantly lower net debt of BRL 3.6 billion, down from BRL 9.0 billion a year earlier, according to its first quarter 2025 results, highlighting the impact of disposals and cash generation on the balance sheet as investors reassess the valuation of the São Paulo based issuer.
Net debt cut to BRL 3.6 billion
According to Natura & Co's Q1 2025 earnings release, consolidated net revenue reached BRL 7.3 billion in the quarter ended 31 March 2025, compared with BRL 7.2 billion in the same period of 2024, showing modest top line growth after portfolio streamlining. The group posted adjusted EBITDA of BRL 1.1 billion for Q1 2025, up from BRL 0.7 billion in Q1 2024, illustrating a marked improvement in operating profitability once restructuring effects and brand disposals are taken into account. Over the same period, net debt fell to BRL 3.6 billion from BRL 9.0 billion, a reduction of roughly 60%, as stated by the company, driven largely by proceeds from strategic asset sales and disciplined cash management.
Management emphasized in the Q1 2025 communication that Natura & Co is now focused on a simplified structure centered on the Natura brand and Latin American operations following the completion of major portfolio transactions. The group noted that continuing operations delivered an adjusted EBITDA margin of 15.0% in Q1 2025, up from 9.7% a year earlier, supported by pricing initiatives, cost efficiencies and mix optimization in its core market. This margin progression stands out for investors tracking whether earnings quality can sustain deleveraging and support future capital allocation.
After Avon and The Body Shop exits
In recent years, Natura & Co executed substantial portfolio changes, including the sale of The Body Shop and the carve out of Avon assets, in a bid to streamline governance and sharpen geographic focus. As described by the Q4 2024 earnings release, the full year 2024 saw Natura & Co report net revenue of BRL 30.4 billion from continuing operations, compared with BRL 30.1 billion in 2023, while adjusted EBITDA reached BRL 3.7 billion versus BRL 2.5 billion a year earlier. The annual adjusted EBITDA margin thus improved to 12.1% in 2024, up from 8.3% in 2023, underscoring how the exit from less profitable activities and efficiency measures translated into stronger operating performance.
The company also pointed out that the Natura brand and related franchises represented approximately 70% of continuing net revenue in 2024, reinforcing the central role of the direct selling and digital beauty model in its reshaped portfolio. According to the same Q4 2024 document, Natura & Co generated free cash flow of BRL 1.8 billion during 2024, versus BRL 0.2 billion in 2023, reflecting higher profitability, tighter working capital control and lower cash usage in non core operations. For investors, the shift from a multi brand global platform toward a more concentrated Latin America centric footprint alters the risk profile, with a greater exposure to Brazilian and regional macroeconomic conditions but clearer accountability for returns on capital.
The deleveraging path is central to the equity case. The Q4 2024 release shows that net financial leverage, measured as net debt to adjusted EBITDA, declined to 1.0 times at the end of 2024, compared with 3.6 times at year end 2023. This rapid reduction in leverage gives Natura & Co more flexibility to invest selectively in product innovation and omnichannel distribution and could influence the cost of funding. Yet the market will continue to watch whether this leaner structure can sustain both growth and margin resilience as competition in beauty and personal care remains intense across South America.
Margins and guidance into 2025
Natura & Co has set clear profitability ambitions for 2025. As noted in its Q4 2024 earnings presentation, management is targeting an adjusted EBITDA margin in the mid teens for 2025 continuing operations, signaling confidence that pricing, channel mix and cost discipline can be maintained despite macro headwinds. The presentation highlighted that Natura & Co aims to keep capital expenditures in a normalized range around BRL 1.0 billion in 2025, after BRL 1.2 billion in 2024, focusing investments on digital platforms, logistics, and sustainable innovation.
The same document indicated that Natura & Co plans to sustain a dividend policy aligned with balance sheet strength and growth needs. For 2024, it proposed a dividend distribution of BRL 0.64 per share, subject to shareholder approval, compared with BRL 0.35 per share for 2023, according to the company. This uplift in cash returns mirrors higher earnings and lower leverage, but investors will consider whether such payouts are sustainable if macro volatility increases. In addition, the group expressed an intention to maintain net leverage at or below 1.5 times adjusted EBITDA over the medium term, setting a clear boundary for future acquisitions or expansion projects.
Looking at segment performance, Natura & Co reported in its Q4 2024 materials that the Natura Brazil operation delivered net revenue growth of 5.4% in 2024 compared with 2023, supported by stronger digital channel sales and improved consultant productivity. In contrast, the Latin America ex Brazil segment recorded 2.1% net revenue growth year on year, signaling both opportunity and challenges in markets such as Mexico and Colombia. The margin profile also varied: Natura Brazil achieved an adjusted EBITDA margin of 17.8% for 2024, while the ex Brazil segment posted 10.4%, indicating where operational leverage and brand strength are currently highest.
For 2025, the company expects the Natura Brazil business to continue to be the main earnings contributor, but it aims to lift margins in ex Brazil operations through product mix changes and route to market refinements. The group has mentioned in its 2024 presentation that productivity initiatives and simplified assortments are key levers in these regions. For stock market participants, the relative performance between Brazil and the rest of Latin America may influence views on Natura & Co's medium term growth and risk balance, particularly given the currency fluctuations that can affect consolidated figures.
Natura brand at the center
The Natura brand, offering cosmetics, fragrances, skin care and personal care products, remains the flagship of the group. According to Natura & Co's 2024 annual report, the Natura brand reached approximately BRL 20.8 billion in net revenue in 2024, accounting for the majority of the group’s continuing operations and showing mid single digit growth over the prior year. The brand operates through a hybrid model that combines direct selling consultants, owned stores and digital platforms, with digital sales representing about 53% of total Natura brand revenue in 2024, as stated in the document, up from roughly 49% in 2023.
The annual report notes that the number of active consultants for the Natura brand in Brazil was around 1.7 million in 2024, compared with approximately 1.8 million in 2023, indicating a slight reduction but with higher average productivity per consultant driven by digital tools and targeted campaigns. In Latin America excluding Brazil, Natura counted about 0.7 million active consultants in 2024, broadly stable versus the prior year, demonstrating resilience in its direct selling base across different regulatory environments and consumer preferences.
Natura & Co also underscores sustainable innovation as a differentiating factor for the brand. It stated in the 2024 annual report that more than 90% of its Natura brand portfolio is derived from renewable ingredients, and around 60% of packaging by weight came from recycled or recyclable materials in 2024. These sustainability metrics, while not directly financial, form part of the brand’s equity with consumers and might influence long term demand and pricing power. For investors, the capacity to monetize sustainability investments through premium positioning and higher loyalty is an ongoing question, but the evidence of rising digital engagement and steady revenue growth suggests the strategy resonates with key customer groups.
Shares on B3 in São Paulo
Natura & Co's common shares are listed on the B3 exchange in São Paulo under the ticker B3: NTCO3. According to recent market data from a B3 quote page, the stock traded at around BRL 16.50 as of 30 April 2025, while the 52 week range spanned approximately BRL 10.20 to BRL 19.80. At that price level, Natura & Co's market capitalization stood near BRL 22.0 billion as of 30 April 2025, giving it a meaningful presence among Brazilian listed consumer companies and drawing attention from domestic and regional funds that focus on the beauty and personal care sector.
The stock’s trajectory over the past year reflects both the progress in deleveraging and lingering questions on growth. Using the same B3 data, Natura & Co shares were up roughly 45% from their 52 week low, while still trading about 17% below the 52 week high as of 30 April 2025. This pattern points to an improved but not euphoric market view, consistent with a company that has reduced balance sheet risk but still faces execution demands on margins and expansion. For shareholders, the interplay between adjusted EBITDA growth, cash generation and potential corporate actions such as further portfolio refocusing will be critical in determining whether the valuation converges closer to historical multiples for global beauty peers.
From a technical standpoint, the stock has hovered in a band around BRL 15 to BRL 18 in recent months, according to chart data presented on the B3 platform. The lack of a clear breakout beyond the 52 week high may signal that investors await further confirmation that the 2025 margin targets and cash distribution plans can be met without compromising growth initiatives. Nonetheless, the combination of stronger earnings, lower leverage and focused branding gives Natura & Co a differentiated profile among Brazilian consumer names, which often contend with more volatile demand or less global exposure than beauty oriented businesses.
Explore more details on Natura & Co
For readers who wish to explore further, additional documents and historical data on Natura & Co are available, including annual reports, earnings presentations and regulatory filings that provide context on strategy, governance and financial development.
Natura brand digital beauty
The Natura brand’s digital presence is a practical example of how the group seeks to combine financial discipline with innovation. According to the 2024 annual report, mobile app and web platform orders represented about 65% of Brazilian Natura brand sales in the second half of 2024, up from approximately 58% in the first half, evidencing a tangible shift in customer behavior. This digitalization supports more targeted promotions, personalized product recommendations and faster feedback loops on new launches, which in turn can enhance consultant productivity and reduce distribution costs.
One of the representative product lines is the Ekos portfolio, which features ingredients sourced from the Amazon region with an emphasis on biodiversity and community partnerships. The annual report stated that Ekos represented about 12% of Natura brand revenue in 2024, and that its sales grew by roughly 8% year on year, faster than the overall brand average. Such product dynamics matter because they show where Natura & Co can achieve above average growth without relying on heavy discounting, thereby supporting margins. Investor attention often focuses on whether these kinds of high engagement, sustainability oriented lines can be scaled further outside Brazil and across Latin America.
Natura & Co stock and investor view
Natura & Co stock, trading around BRL 16.50 on B3 as of 30 April 2025, encapsulates a narrative of balance sheet repair, margin improvement and portfolio refocusing. The reduction in net debt from BRL 9.0 billion to BRL 3.6 billion over one year, alongside a move in adjusted EBITDA margin from 8.3% in 2023 to 12.1% in 2024, demonstrates that restructuring efforts have been more than cosmetic. For equity holders, the key question is whether this financial progress can be sustained in an environment where consumer demand and currencies can fluctuate, and where competition from local and global beauty brands remains strong.
The share price level relative to its 52 week range suggests that the market recognizes the improvements but still values the stock with a degree of caution. Should Natura & Co meet or exceed its mid teen EBITDA margin target for 2025 and maintain net leverage near or below 1.5 times, the valuation discussion may shift, as investors would be looking at a stronger cash generation profile from a simplified beauty platform. Conversely, any deviation from these goals or renewed volatility in key markets could prompt reassessment. In the meantime, the company’s emphasis on digital innovation, sustainable products and targeted capital allocation provides a framework within which shareholders can gauge progress beyond headline revenue figures.
Natura & Co stock key data
- Company: Natura & Co Holding S.A.
- ISIN: BRNTCOACNOR5
- Ticker: B3: NTCO3
- Trading venue: B3 São Paulo
- Price (as of 30 April 2025, 16:00 BRT): 16.50 BRL
- Market capitalization: 22.0 billion BRL (as of 30 April 2025)
- Sector / Industry: Consumer Staples / Personal Care & Cosmetics
- Index membership: Ibovespa
- Next earnings date: 8 August 2025
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