Is Natura &Co profitable in 2026?

Q1-2026 EBITDA margin was just 7.3% on BRL 4.7 billion net revenue, per Natura's own investor relations report dated May 11, 2026, reflecting margin compression amid Brazil and Argentina demand weakness and declining consultant activity.

Who owns Natura &Co now?

Natura remains B3-listed (NATU3) with founder families historically in control, but in March 2026 US private equity firm Advent International committed to buy an 8 to 10 percent stake, and by July 2026 had reached 8 percent, winning two board seats as founders exited the board.

Is Natura &Co losing market share to O Boticario?

As of 2025, Natura held 42 percent of Brazil's direct-selling beauty market versus O Boticario's 31 percent per Euromonitor, though Natura's overall revenue is declining and consultant headcount in Brazil fell in Q1-2026, per Natura's own May 2026 report.

Could AI replace Natura's beauty consultants?

Natura's core moat is its 1.6 to 3.5 million-person direct-selling consultant network across Latin America, per an AWS case study; the company is deploying AI for search, CRM reporting and margin analysis internally, but AI augments consultants rather than replacing the relationship-based selling model.

What happened to Avon under Natura &Co?

Natura sold Avon International to Regent for a nominal 1 pound plus up to 60 million pounds in contingent payments, completed December 31, 2025, then sold Avon Russia to Arnest Group for about 26.6 to 26.9 million euros, completed February 2026, per Natura's official announcements.

Did Natura &Co lay off employees or shrink?

Natura's headcount dropped sharply from roughly 14,500 to 19,000 employees in 2024 to about 4,240 by December 2025 largely due to divesting Aesop, The Body Shop and Avon International, not organic layoffs, per company divestiture announcements through early 2026.

Consumer brands · Brazil

Natura &Co Holding S.A.

naturaeco.com ↗

Brazilian beauty giant selling via door-to-door consultants, owns Natura and Avon.

Protection under test

Assessed 23 July 2026 · Evidence as of 23 July 2026

Something worth protecting exists and is being tested right now.

On the recordSince 23 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: Q2 2026 earnings showing whether Avon relaunch and consultant headcount stabilize

The call

Natura still leads Brazil's direct-selling beauty market but its consultant base and margins are shrinking while Avon's relaunch and a new PE owner remain unproven.

Natura & Co sells beauty products directly to customers through a network of consultants, mostly in Brazil and Latin America. The company has deep roots there: it has been building relationships with suppliers in the Amazon and with millions of sales consultants for decades, which big global beauty companies cannot easily copy or replace. However, Natura & Co is shrinking (sales went down in 2024 and 2025), its profits per dollar of sales are getting thinner, and it is losing the consultants who sell its products, especially in Brazil where it makes most of its money. A rival called O Boticário is also selling beauty the same way in Brazil and is gaining ground. The one thing that could change the picture is whether Natura & Co can keep its consultants happy and growing again, and whether its new ownership (a private investment firm called Advent International) can make the business more profitable and stop the sales decline.

Why

AI pressure: Perfect Corp's YouCam AI skin tools and Amazon's Rufus shopping assistant. AI skin scanners and shopping assistants give shoppers personalized picks online, cutting the need to visit a consultant. Could AI do the core job? Unlikely.

Bigger players: O Boticario. O Boticario holds 31% of Brazil's direct-selling beauty market and keeps pressing as Natura's consultant base shrinks. Could a giant copy it? No, they are blocked.

What protects it. A 1.6 to 3.5 million person consultant network and long-held Amazon sourcing ties that took decades to build.

What would change this call

Natura's Q2-2026 Brazil revenue and consultant headcount figures (~August 2026). Shows whether the consultant network erosion is stabilizing or worsening.
Natura's EBITDA margin trend versus the 7.3% Q1-2026 level in coming quarters. Shows whether margin compression is reversing or deepening.
Completion and terms of Advent International's stake increase (~Sept 2026 target). Shows whether new ownership brings stability or further disruption to governance.

Key numbers

Brazil direct-selling share: Natura 42% vs O Boticario 31% (2025)
Q1 2026 EBITDA margin fell to 7.3% (2026-Q1)
Avon Brazil revenue dropped 12.9% in 2025 (2025)

Named risks

Declining consultant activity and headcount in Brazil, Natura's core moat and largest market. Severity: high
EBITDA margin compressed to 7.3% in Q1-2026 amid Brazil and Argentina macro slowdown. Severity: high
Governance transition as founders exit board and Advent International gains influence. Severity: medium
Legacy Avon talc litigation and Chapter 11 fallout still generating settlement charges through Q4-2025. Severity: medium
Avon Brazil brand revenue fell 12.9% in 2025 with relaunch traction unproven as of mid-2026. Severity: high

Rivals, as read in July 2026

Rival	Direction	Evidence
O Boticario	contesting	31% Brazil direct-selling share vs Natura's 42% as of 2025, per Euromonitor
L'Oreal	contesting	L'Oreal LatAm revenue fell 2.3% in Q2 2025 amid regional slowdown also hitting Natura
Estee Lauder	contesting	Global prestige beauty incumbent structurally boxed out of Latin American direct-selling channel
Amway	contesting	Cited as world's largest MLM cosmetics company, ahead of Avon, per April 2026 industry report
Herbalife/Mary Kay/USANA	contesting	Direct-selling peers competing for consultant recruitment across Latin America

Questions people ask

Is Natura &Co profitable in 2026?: Q1-2026 EBITDA margin was just 7.3% on BRL 4.7 billion net revenue, per Natura's own investor relations report dated May 11, 2026, reflecting margin compression amid Brazil and Argentina demand weakness and declining consultant activity.
Who owns Natura &Co now?: Natura remains B3-listed (NATU3) with founder families historically in control, but in March 2026 US private equity firm Advent International committed to buy an 8 to 10 percent stake, and by July 2026 had reached 8 percent, winning two board seats as founders exited the board.
Is Natura &Co losing market share to O Boticario?: As of 2025, Natura held 42 percent of Brazil's direct-selling beauty market versus O Boticario's 31 percent per Euromonitor, though Natura's overall revenue is declining and consultant headcount in Brazil fell in Q1-2026, per Natura's own May 2026 report.
Could AI replace Natura's beauty consultants?: Natura's core moat is its 1.6 to 3.5 million-person direct-selling consultant network across Latin America, per an AWS case study; the company is deploying AI for search, CRM reporting and margin analysis internally, but AI augments consultants rather than replacing the relationship-based selling model.
What happened to Avon under Natura &Co?: Natura sold Avon International to Regent for a nominal 1 pound plus up to 60 million pounds in contingent payments, completed December 31, 2025, then sold Avon Russia to Arnest Group for about 26.6 to 26.9 million euros, completed February 2026, per Natura's official announcements.
Did Natura &Co lay off employees or shrink?: Natura's headcount dropped sharply from roughly 14,500 to 19,000 employees in 2024 to about 4,240 by December 2025 largely due to divesting Aesop, The Body Shop and Avon International, not organic layoffs, per company divestiture announcements through early 2026.

Timeline

2026-07-02Advent International reaches 8% stake trigger (~90.7M shares), gains two board seats, founders exit board
2026-05-11Q1-2026 results: BRL 4.7B revenue, 7.3% EBITDA margin, Brazil consultant decline flagged
2026-03-30Natura announces board reconfiguration, Advent stake deal, founders move to Advisory Board
2026-03-17Q4-2025 results: continuing-operations net income up over 100% to BRL 620M; consolidated loss BRL 321M
2026-03Avon relaunch begins in Brazil and Mexico with above-expectation early sales, per company
2026-02-20Avon Russia sale to Arnest Group completes for about 26.6 to 26.9 million euros
2025-12-31Sale of Avon International to Regent completes for 1 pound plus up to 60 million pound earnout
2025-09-18Natura announces agreement to sell Avon International to Regent, refocusing on Latin America
2025-08-11Q2-2025 results: net revenue BRL 5.7 billion, up 5.5% constant currency
2024-08Avon Products Inc. (US entity) files for Chapter 11 bankruptcy amid talc litigation

Revision history

23 July 2026

First assessed. Protection under test. The text above is fixed as of this date and is not edited afterwards.

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